Protection in this context refers to the avoidance, transfer or elimination of risk. In financial planning terms the most common risks are financial - loss of principal, loss of purchasing power, tax expenses: and personal – dying too soon, living to long, becoming sick or hurt.
- Life insurance is a risk management instrument which pays a sum of money to a named person when another person dies. Some insurance products include a savings element. Some life insurance products include an investment element.
- Disability insurance provides either a stream of income or a lump sum of cash to a person in the event they become unable to work due to illness or injury.
- Long-term Care insurance provides a daily cash benefit for persons who have lost the ability to care for themselves as determined by the inability to perform various activities of daily living.
- Property Insurance provides for repair and/or replacement of property damaged by means other than normal use.
- Liability insurance transfers some of the risk of being liable to someone else for damage or injury.
- Annuities are designed to provide income for life. Annuities can be built as a fixed (savings) model or a variable (investment) model, or a combination of both. Income tax is deferred until the money is withdrawn.
- Legal documents from wills, to trusts and other legal powers can transfer your decision making authority to other persons in the event that you cannot, or choose not, to do so yourself.
- Fee-Based Insurance Consulting provides objective and professional advice at a predetermined price.