What Is Insurance Planning?
Insurance planning is the process in which strategists evaluate potential risks, and develop solutions to mitigate the losses incurred by them. The goal is to provide financial protection against these risks, in order to reduce the expenses that come with the event.
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Insurance Planning Strategies to Reach Your Financial Goals
At Menninger & Associates, the wealth managers are well-informed about various strategies, including four common types:
Retention - Accepting the risk if its effects are minimal, or the cost of outside insurance is too high.
Transfer - Purchasing an insurance policy which can handle the cost of the risk. Most risks in life can be transferred to insurance companies in the form of health insurance, life insurance, disability insurance, homeowner’s (renter’s) insurance, auto insurance, long term care insurance, and liability insurance.
Reduction - Taking initiative to decrease the likelihood of the risk.
Avoidance - Choosing not to partake in high-risk activities.
What Factors Affect My Insurance Needs?
There are many factors that affect an individual’s insurance needs, and many indicators that can help us decide which strategy is best for you. The most notable components are your income and expenses, as well as your financial goals. This is why insurance planning is an integral service that we provide as financial planners. In addition, it is important to identify any dependents that may benefit from your insurance plan, as they can determine the amount of insurance that you are entitled to.
When planning for your future, it is important to consider the risks that can arise. If you are not prepared for the risks ahead, consider speaking with one of our financial planners to learn about how you can remain protected from financial disasters.
Why Choose Menninger & Associates for Insurance Planning?
You work hard to provide for yourself and your family. At Menninger & Associates, we know that it is important to protect your savings from risks that could cause potential financial burden. By choosing our insurance planning services, we can help find the best strategies for you, to manage your wealth effectively.
FAQ About Insurance Planning
What Types of Insurance Does Financial Planning Typically Address?
A comprehensive insurance plan considers life insurance, disability income insurance, long-term care insurance, health insurance, liability (umbrella) coverage, and property insurance. The right combination depends on your income, dependents, assets, and risk tolerance.
How Much Life Insurance Do I Actually Need?
A general starting point is 10–12x your annual income, but the right amount depends on your debts, number of dependents, lifestyle needs, and existing assets. A financial planner can help you run a needs analysis to find the right coverage level.
What’s the Difference Between Term and Permanent Life Insurance?
Term insurance provides coverage for a set period (typically 10–30 years) and is generally lower cost. Permanent insurance (whole life, universal life) covers you for life and may build cash value over time. The right choice depends on your financial goals and how long you need coverage.
At What Life Stage Should I Review My Insurance Coverage?
You should review your coverage after any major life change: marriage, divorce, having a child, buying a home, starting a business, or approaching retirement. We recommend a full insurance review at least every two to three years.
What Is Long-Term Care Insurance and Do I Need It?
Long-term care insurance covers the cost of extended care services, such as in-home care, assisted living, or nursing home care, that are not covered by standard health insurance or Medicare. With the average cost of long-term care rising significantly, planning ahead can protect your retirement savings from being depleted.
Does Menninger & Associates Sell Insurance Policies?
Our role is to help you evaluate your insurance needs as part of your overall financial plan and connect you with appropriate solutions. We work to ensure your coverage aligns with your broader financial goals, risk exposure, and budget.
How can we help?
