You Need These Insurances

An insurance analysis should be part of your estate planning process. Below, we nutshell the insurances most commonly needed by our clients. Should you have any questions or concerns about insurance, consult with a qualified estate planning attorney.

Life insurance

Life insurance is commonly used to:

• Replace income for surviving spouses and children and pay for last expenses
• Fund buy-sell agreements
• Equalize an estate
• Pay federal estate taxes
• Create an estate

Disability insurance

Disability insurance is commonly used to replace earned income so that you can pay your monthly bills if you are sick or injured and unable to work.

Liability insurance (aka casualty insurance)

Liability insurance pays any settlements or verdicts (up to your policy limits) if you caused another person to be injured and/or his property to be damaged.

• Car insurance (be sure to include underinsured and uninsured motorist coverage)
• Renters insurance
• Homeowners insurance
• Umbrella liability insurance (aka personal catastrophic insurance)

Property insurance

Property insurance covers your interest in your own property.

• Car insurance (be sure to include underinsured and uninsured motorist coverage)
• Renters insurance
• Homeowners insurance

Long term care insurance

Because nursing homes cost about $9,000 a month, which is $108,000 per year, many clients choose to purchase long term care insurance.

Long term care insurance pays for care at home, in assisted living and in a nursing home.

Although it is expensive, all the premiums you pay over the years are likely to be less than one years stay in a nursing home.

Business insurances

• Business interruption insurance
• Business umbrella policy
• Life insurance for buy-sell
• Property and casualty insurance

Other insurances

Depending on where you live, you may need these insurances as well:

• Earthquake insurance
• Wind and rain insurance

If you have questions about these insurances or any others, consult with a qualified estate planning attorney.