There are several types of insurance that are used to manage the risks we face in our everyday life.  Some of these risks may include premature death, disability or the need for long-term care.

• Premature Death – traditional use of life insurance to provide financial support for dependents, pay off a mortgage, car loan, fund college costs, funeral expenses, etc.
• Disability – if unable to earn a living due to sickness or being disabled, disability insurance will replace a portion of earned income.
  
• Long Term Care – covers the need for care when there is a loss of independence due to a physical or mental impairment.  Long-term care insurance provides financial assistance to receive care at home, in an assisted living facility, nursing home, etc.

Insurance is also used in other planning strategies.  A few of these strategies include:

• Estate Planning – the use of Life Insurance Trusts (Revocable or Irrevocable) helps provide liquidity to pay estate taxes; debts and expenses; may minimize gift, estate, or generation skipping taxes; protects assets from claims of creditors; and can provide a legacy for the insured’s heirs.
• Corporations and Small Businesses – may use Life and/or Disability Insurance to cover key employees, attract and retain employees and fund buy-sell agreements.
• Charitable Giving – Life Insurance can be used to provide gifts to charity at the insured’s death by setting up Charitable Gift Trusts or naming the charity as a beneficiary of a life insurance policy.

Selecting the appropriate Insurance Solution for your particular situation or need requires careful analysis and knowledge of the options available.  This process can be simple or quite complex.  You should consider working with a financial advisor to assist you in determining your insurance needs.  At Peoples Financial Advisors we have the tools and the experience to develop Insurance Solutions for your particular situation.  We work with businesses and individuals, developing insurance strategies to meet their needs and manage their risk.

If you believe you could benefit from an insurance analysis or would like to learn more, click on the link below.