Insurance Planning in San Diego, CA

Insurance: Your Financial Safety Net

At Compound Wealth Advisors, we believe that insurance is fundamental to protecting your estate. For young families, this could be term insurance, or for empty nesters, this could be whole life insurance. Insurance is not just about protecting your assets though, it’s about safeguarding your future.

What is Risk Transfer?

Risk transfer is at the heart of insurance. It’s a strategy where you shift the potential financial burden of certain risks from yourself to an insurance company willing to underwrite those risks among a large number of insured for a premium. Here’s why it’s important:

  • It protects your assets from unexpected events
  • It provides financial stability during challenging times
  • It allows you to focus on wealth building without constant worry

Think of risk transfer as your financial safety net. It’s there to catch you if you fall and provide the capital you need to get you back on your feet. 

Insurance and Financial Planning

As part of our comprehensive financial planning, we offer a review of your current life, health and property insurance to see if it is sufficient and adequate for your needs. While we dont sell insurance, we do work with qualified independent agents to find the right product for you.

Long-Term Care Insurance

What it is: Coverage for extended medical assistance not covered by Medicare. There is a high probability you may need long term care insurance during your lifetime but is it the right choice? Some families may be fortunate enough that they can afford substantial medical bills without long term care insurance but for most families long term care is the best option even though it is increasingly expensive.

Why it matters: Protects your assets from being depleted by healthcare costs not covered by any other forms of insurance.

Health Insurance

What it is: Coverage for medical expenses

Why it matters: Protects your savings from the high costs of medical bills. If you retire before age 65 you may need private healthcare insurance.

Health insurance play a critical role in your overall financial plan. At Compound Wealth Advisors, we can help review your current policies and make sure that you have adequate coverage.

Life Insurance

What it is: Financial protection for your loved ones in case of your death

Why it matters: Ensures your family’s financial stability even if you’re no longer there to provide. There are many types of life insurance from term to universal life to whole life. For many families, these policies may no longer be needed after the children have graduated school and started working.

Property Insurance

What it is: Protection for your home, car, and other valuable assets

Why it matters: Safeguards your investments from unexpected damage or loss, particularly liability. Many people don’t have umbrella insurance which is a very inexpensive form of added liability coverage.

Annuities

Annuities can be a reliable source of steady income. Many of our clients prefer a steady income stream in retirement to pay for basic expenses. This often allows them to enjoy spending more in retirement knowing that their fixed expenses will always be met. How do you pay for an annuity and what value do you get in return?:

  • You invest a lump sum or make regular payments into an annuity
  • The insurance company guarantees you a steady income for a specified period of time or for life
  • The annuity creates financial stability

At Compound Wealth Advisors, we can help you explore whether annuities might be a good fit for your financial plan.

How Compound Wealth Advisors Can Help

Navigating the world of insurance can be complex, but you don’t have to go it alone. We are here to guide you every step of the way. We offer:

  • Personalized insurance needs analysis
  • Comprehensive policy reviews
  • Guidance on integrating insurance into your overall financial plan
  • Ongoing support to adjust your coverage as your life changes

Think of risk transfer as your financial safety net. It’s there to catch you if you fall and provide the capital you need to get you back on your feet.

Frequently Asked Questions About insurance

Do I still need life insurance in retirement?

It depends on your financial situation and dependents. If you have sufficient savings and no dependents relying on your income, you may not need life insurance. However, some retirees maintain policies to cover final expenses or leave an inheritance. You also may want to consider converting your life insurance into an annuity to maintain an income floor during your retirement years.

Do I really need long term care Insurance?

Long-term care insurance (LTC) can help cover the costs of extended care not covered by Medicare. The best time to purchase LTC is typically in your 50s or 60s when premiums are lower and you’re more likely to qualify. If your assets are sufficient you may not need long term care but it is worth considering if you can qualify.

How does retiring early (before age 65) affect my insurance options?

Early retirement may create a gap in healthcare coverage before Medicare eligibility. Options include COBRA from your former employer, private health insurance, or ACA marketplace plans until you can qualify for Medicare.

Should I keep my disability insurance as I approach retirement?

As you near retirement, the need for disability insurance typically decreases. Once you’re no longer relying on employment income, you can usually discontinue this coverage

Are there any special insurance considerations if I plan to travel frequently during retirement?

Consider travel insurance for trip cancellations and medical emergencies abroad. If traveling for extended periods, inform your home and auto insurers, and look into international health insurance options.

Free Financial Review

We know it can be difficult to assess the value of working with a financial advisor. To help you better understand what we can do for you we are offeirng a free financial review to assess your retirement readiness.

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