SLO LIFE Jun/Jul 2017

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insurance you need and how long should you have it. But in general,
you need enough so that your survivors can pay the bills for a few
years if needed and/or pay off the mortgage, pay for college, and any
other expenses like estate taxes. The term of the insurance should
last as long as the need (usually until kids are out of college or until
retirement age if your assets are built up enough). Even if you’re
a smoker, some carriers will qualify you for non-smoker rates after
abstaining for 1 to 3 years. You can always reduce the face amount
of your policy (and the premium) later down the road if you don’t need
as much—but you can’t add more coverage without underwriting.
Even if you are not a breadwinner in the home, you need life
insurance. What is the cost to replace what you do—care for the kids,
maintain the home? Imagine what that would be like for your spouse
if he had to work full time, but couldn’t afford to hire daycare or a
nanny, hire a gardener, or pay to have repairs done on the house?
5. Purchase disability insurance.
For most people, their number one asset is their income.
Yet this is one of the most overlooked insurance coverages.
Thanks to great medical care, many people now survive what
would have been terminal injuries or disease. The financial
“downside” of this is a period of time without income and
simultaneously higher expenses. If you work for a large
employer, they typically offer group disability at very cheap
rates—get it! You can usually convert it to an individual policy
if you leave with no additional underwriting! If you are a
business owner or are in private practice and are responsible
for your own paycheck, you definitely need disability
insurance. There are many excellent carriers available
depending on your industry, and many are often surprised at
how affordable it can be.
A little planning goes a long way. Timing is everything. Next to investing and insurance, mapping out the timing of
your large expenses and priorities can help save you a lot of money in terms of taxes, opportunity costs, interest
rates, and when you can retire! Little things like misallocated or inefficient investment accounts can add years
to the time you are required to work. Aside from investment and insurance advice, the bulk of the dollar value we
deliver to clients is in terms of mistakes we help clients avoid and help in prioritizing how they fund their many
expenses and goals.
POINT SUR WEALTH MANAGEMENT, INC.
524 EAST BRANCH STREET . ARROYO GRANDE . (805) 574-1620
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC
(Kestra AS), an affiliate of Kestra IS. Point Sur Wealth Management, Inc. is not affiliated with Kestra IS or Kestra AS. CA Insurance License 0I12781.
JUN/JUL 2017 | SLO LIFE MAGAZINE | 63