What would happen to your family if you or another primary income earner suddenly became disabled and couldn’t work for an extended period of time? What if they died and their income disappeared forever? Many families would have a hard time paying the mortgage, the property taxes, tuition, and many other expenses involved in a family’s daily life. And believe it or not, the majority of families don’t have an adequate plan to cover all those expenses.
In this episode, Kirsten Howe speaks with independent insurance specialist Todd Wellnitz about different types of insurance that he refers to as “lifestyle insurance.” He’ll share some general rules and stories to educate us about this critical aspect of financial and estate planning.
Don’t be caught off guard in the case of disability. This podcast will ensure you’re prepared for a loss of income in an unexpected situation.
Todd believes people’s lifestyles are very personal to them, and he wants to make sure that his clients keep that lifestyle protected in case life shows up in those not-so-happy and unexpected ways. Todd recommends using insurance tools such as disability insurance, life insurance, long-term care insurance, and some income annuities as stabilization strategies for his client’s financial future, so they can sleep better at night.
As a fully independent broker, Todd’s company, Wellguard Insurance & Financial, has no obligation to sell any insurance company’s product. This means he doesn’t have a quota to provide a certain number of policies to his clients.
For consumers, Todd’s job is to make his clients look as attractive to the right insurance company as possible so he can get more money for their families from the big insurance companies. Another advantage of Todd’s business is that he can pick and choose from a variety of insurance companies to source the best protection for a particular situation.
Some of the topics covered in this podcast include:
- The types of insurance that can be used to help generate income if a person becomes disabled
- The amount of lifestyle insurance you’ll need to secure based on your income in order to protect your lifestyle
- Believe it or not. You could be the beneficiary of your own life insurance policy
- How to convert a term life insurance into a permanent policy without reapplying based on health
- Using income annuities to help pay for long-term care
- Why it’s beneficial to work with an independent insurance agent
- What you can do if you can’t secure insurance coverage based on your health
If you haven’t thought much about how you would protect your family’s lifestyle if the primary earner were to become disabled, and you want to learn how to do it, this is the episode for you.
Big Three from Episode #089:
- You are three times more likely to become accidentally disabled at a younger age than you are to die, which is why it’s so important to create a plan to replace your income in the event a disability occurs.
- If you become disabled, the cost of long-term care will severely impact your family’s lifestyle. You can purchase disability insurance or leverage other types of insurance to help alleviate some of this financial burden.
- To determine the correct amount of insurance in the event you become disabled, plan on purchasing 10 times your income for your life insurance death benefit and five times your income for disability insurance.
Time-stamped Show Notes:
2:08 Kirsten introduces Todd Wellnitz, the founder of Wellguard Insurance & Financial.
3:07 What does “lifestyle insurance” mean? Why is it so important to protect your lifestyle? Listen in as Todd explains.
3:21 There are several insurance tools that you can use to protect your lifestyle, including disability insurance, life insurance, long-term care insurance, and some income annuities. Start listening here to learn about each one and how they may benefit you.
4:08 Wellguard Insurance & Financial is an independent insurance broker, meaning their job is to help clients find the perfect insurance products based on their needs. Learn why this is so important by tuning in now.
6:18 When it comes to purchasing insurance products, disability insurance can often be overlooked. Press play here to listen to Kirsten and Todd explain why this is a mistake.
9:06 Typically, people can receive disability insurance equal to about 45% of their income. Higher earners can receive up to an additional 20% by purchasing in the European insurance marketplace. This income is a tax-free benefit.
10:47 Listen as Todd explains why it’s important to purchase the right amount of disability insurance based on your family’s particular needs.
12:08 Life insurance can be used as another tool to protect lifestyle. Kirsten and Todd explain how you can actually be your own life insurance policy beneficiary.
14:07 Did you know you can accelerate the death benefit on your life insurance plan to pay out while you’re living. Listen in as Todd explains.
15:07 Many people are not aware that life insurance policies through employers are only valid while you’re still employed with that company. Kirsten explains how this gap isn’t always recognized among her clients.
18:52 How much life insurance do you need to protect your lifestyle? It can be anywhere from 10 to 20 times your current income. Here’s what you need to know.
24:36 What if people could pay into something and whether they use it or not, the family will benefit? That comes in the form of a life insurance policy with a long-term care rider. Todd explains what you need to know right here.
27:01 What happens if someone can’t get insurance coverage due to health? Other options may include using income annuities that will increase their benefit due to a long-term care event.
28:48 Finding an independent insurance provider, such as Todd Wellnitz, can help you purchase the right insurance products specific to your needs. Todd explains why you can’t get this personalized menu of services with a standard broker. Tune in here for more information.
29:56 Q&A If you are an employee and become disabled, you can get state disability payments. In some circumstances, if there’s also a private insurance policy, how do the two work together? Do you get both benefits?
33:10 Q&A Is there disability insurance available for stay-at-home parents?
34:35 Q&A Is it a good idea to buy life insurance for a child?
Get in Touch with Todd!
Todd Wellnitz, CLTC
President, Insurance Broker
Wellguard Insurance & Financial
1516 Oak St. #218
Alameda, CA 94501
Resources/Links Mentioned in this Episode:
- Absolute Trust Talk Episode 17: Disability Income—How to Do It Right and Avoid the Many Pitfalls
- Absolute Trust Talk Episode 052: Estate Planning and Financial Planning with Life Insurance
- Absolute Trust Talk Episode 033: Learning the Language: Long Term Care Insurance
- Use Long Term Care Insurance as Intended
- WellGuard Insurance & Financial
- Our Absolute Trust Counsel team would love to offer all of you access to ATC’s Incapacity Planning resource page on https://absolutetrustcounsel.com/incapacity-planning/ We’ve collected our top planning information all in one place so listeners can find videos, guidebooks, blog posts, a host of information with tips and strategies on implementing, planning, and protecting themselves and their loved ones.
- We’re pleased to provide you with a library of e-books to address common estate planning questions and concerns in practical, easy-to-understand language. https://AbsoluteTrustCounsel.com/Resources/.
- ASK KIRSTEN: If you’d like Kirsten to answer your question on the air, please email her at Info@AbsoluteTrustCounsel.com.
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