The Importance of Risk Management in Estate Planning
There are many reasons to create an estate plan, with quite a few of them attached to risk management.
While you never know what the future will bring, one thing is for sure: it’s better to be safe than sorry.
With this in mind, risk management should be a big part of your estate planning as a whole.
Here are three points of consideration:
1. Life Insurance
Regardless of your age or health, you never know what tomorrow will bring. Life insurance gives you peace of mind in knowing that your family will be financially secure in the event of your death.
There are three primary types of life insurance to consider: term, whole, and universal. Comparing the details, pros, and cons will help you make an informed buying decision.
2. Disability Planning
You could come face to face with a disability when you least expect it. And when that happens, there’s a good chance you won’t be able to work to support you and your family.
The best approach to disability planning is to purchase both a short and long-term disability insurance policy. This will provide you with money in the event that a disability prevents you from working.
3. Long-term Care Planning
Long-term care planning takes on many forms. Here are some of the questions you should answer:
- Where do you want to receive nursing home care should it be necessary?
- What’s the best way for you to pay for long-term care?
- Who do you want to make key decisions on your behalf if you’re unable to communicate your wishes?
If you’re unsure of whether or not you’ve taken the right steps in regards to risk management, contact our law firm to setup a free consultation. We can review your plan, answer your questions, and help ensure that you’re prepared for anything that could happen in the future.