Financial planning is more like a house than a single, solid brick. There are different aspects, and they all come together to create something that provides safety, stability and comfort. Each element is as important as the next.
One of these elements is your insurance. You can think of this as your foundation, and like the physical foundation of a house, it keeps you on solid ground when disaster strikes. The foundation needs to match the house, and your insurance policies need to match your unique circumstances.
The average person will need multiple products to stay on solid footing no matter what happens, including:
- Homeowners insurance
- Flood insurance
- Auto insurance
- Life insurance
- Long-Term Care insurance
- Disability insurance
- Other insurance products for your lifestyle
Another element is estate preservation, which can be likened to the roof above your head. To make sure this roof doesn’t leak, several issues need to be considered, including:
- Estate taxes
- Wills versus living trusts
- Life insurance
But there’s more to a house than the foundation and roof, and there’s more to financial planning than insurance and estate preservation. Don’t leave anything out. Download the Six Pillars of Financial Planning to learn more.