Q&A WITH ALIA: HOW INSURANCE PROTECTS WHAT YOU’VE WORKED HARD TO BUILD
We all focus on growing our money—investments, savings, day-to-day goals—but often forget the one thing that keeps it safe: insurance. It’s easy to see insurance as just another task on the to-do list, but it’s actually risk management for everything you’ve worked hard to build. Without it, even the best financial plan can fall apart.
Did you know? Alia includes insurance planning as an essential part of your comprehensive financial plan.
We conduct policy reviews and analyses of health and homeowners insurance, life insurance, long-term care and more to ensure you’re adequately covered if unforeseen accidents, events and other life changes occur.
Having the proper levels of insurance (protection!) is important and yet overlooked or deemed an unnecessary expense for something that likely will never happen.
To dispel that myth and show its true value, Alia owner Lindsey Rhea discusses the role of insurance as part of a complete financial plan. She and select Alia wealth advisors can review, recommend and provide policies that protect your home, business and overall financial well-being.
First, why does Alia offer insurance planning? Honestly, it’s not a service many think to ask their financial advisor about.
Lindsey: Most people don’t come into our office saying, “I need insurance planning.” They come in for retirement planning, investing and saving for goals. But a complete plan must answer questions like, “What happens if my income stops or a major liability occurs? Would my family be financially okay if something happened?”
“You can have a great investment strategy, solid savings habits and clear goals, but one uninsured event (death, disability, lawsuit, major loss) can undo all of it.”
As a Certified Financial Planner (CFP®), I enjoy and want to be a go-to for my clients’ financial needs. We laugh sometimes with clients and prospects about how we want to be their financial “Google,” so when they think of anything money-related, they think of us. Insurance plays a role in the overall financial picture and our clients’ lives, serving as protection and peace of mind.
What types of insurance does Alia offer?
Lindsey: Within Alia, a few of us, including me, are licensed through LPL Financial to review and recommend life, health and long-term insurance. This covers and could be for any client in any state that we work with. But there’s more to consider beyond those three core areas once you take a deeper look. Once we get to know you and your needs, we can help customize something that best fits your situation and goals.
What are some real-life ways insurance protects people?
Lindsey: We could be helping a younger couple look for term life insurance only for the moment to cover and protect potential income loss. Or we could have a high-net-worth/high-wage earner looking to maximize cash accrual in a tax-free way and also have some life insurance tied to that cash value that is invested and growing for their future retirement.
How should insurance coverage evolve as a person’s income, family or assets grow?
This gets tricky because there’s no one-size-fits-all solution. But generally, in your 20s to 30s, the focus is protecting your income. We start with employer coverage, then look at additional options, usually a term life policy, since workplace coverage isn’t portable.
For example, if one spouse earns $100,000 a year while the other stays home with three kids, losing that income would be incredibly difficult for the family. That’s why the working spouse may want a larger term life policy to help protect their family and provide peace of mind.
If you’re wondering …
Term life insurance provides coverage for a specific period, the “term,” which is usually 10, 20 or 30 years. If the insured person passes away during that term, the policy pays a death benefit to their beneficiaries. If they outlive the term, the coverage ends and no payout occurs.
What life stages trigger a review?
Lindsey: In your 40s and 50s, your strategy may start to shift. If you’re a high earner who’s already maxed out 401(k)s, IRAs and other investment vehicles, it may be worth exploring cash value accumulation options. If you haven’t yet addressed term coverage, that’s still an important consideration based on your family’s needs. As you move into your 50s, it’s also a good time to begin evaluating long-term care options.
If you’re in your mid-50s to early 60s, it can still make sense to explore long-term care options, though costs for that type of coverage tend to rise significantly after 70. By your late 60s and 70s, term life coverage is generally less necessary, since it’s primarily designed to protect income during your working years.
Where are people typically overinsured or underinsured?
Younger families are often underinsured. They might have little or no term life or employer coverage, so if the main earner passes, it can leave a big gap. Long-term care is another area where coverage tends to fall short. People want to save on premiums, but the risk is that a long care stay could eat through a lifetime of savings.
On the flip side, some people are overinsured. This usually happens when they’ve been sold multiple policies over time and haven’t looked at how everything fits together. Suddenly, they realize they may not need all that coverage anymore. That’s why stepping back and reviewing the whole picture with a professional can be beneficial.
Contact Lindsey and her team today today for help navigating your insurance needs to protect your income, family, home and long-term goals.
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