Where Insurance Fits in Financial Planning

Sam interviews Michael Riney about insurance. Michael is a financial planner with Wealthquest. Prior to Wealthquest, he worked for a large insurance company. They begin with the basics of insurance from what it is to the different types available.

They also talk about the different insurance needs for people in different seasons of life. They talk about life insurance, long-term disability insurance, and long-term care insurance. Because needs in life change, planning is a continuous process. A fee only advisor can help find the best options for an individual or family's needs.

Episode Highlights:

[01:56] Insurance differs depending on your stage of life. For young couples, it's about protecting income and protecting the family. Including life insurance.

[02:22] Long-term disability insurance is a policy that continues to pay an income if you're unable to work due to disability or an illness.

[03:19] Insurance 101. You pay a premium in order to protect something that's valuable to you. You can ensure almost anything. The three most common types of insurance are life insurance, long-term disability insurance, and long-term care.

[03:42] There's also home insurance, auto insurance, business insurance, etc.

[05:28] Most employers offer some type of life insurance and long-term disability insurance, but most people will need additional coverage.

[06:50] Insurance transfers risk and provides peace of mind.

[07:30] It's important to have a trusted advisor help you find the right type of insurance. A fee only advisor will provide advice without an added incentive of selling.

[08:39] At Wealthquest, the team walks through a financial plan and recommends appropriate insurance coverage.

[09:36] Insurance is the foundational piece of financial planning. It protects the clients from anything bad that could happen in their plan.

[09:56] On the estate planning side, a lot of the planning revolves around life insurance.

[10:32] Insurance and investments are more efficient when they're separate. Some type of insurance investment vehicle may make sense when your net worth is over 12 million dollars.

[11:15] Michael discusses insurance requirements in different seasons of life.

[12:10] Life insurance becomes much more prevalent, once there's a family dynamic in play. Long-term disability insurance is always prevalent.

[13:10] Once financial independence is reached, life insurance and long-term disability insurance is no longer needed. This is where long-term care insurance becomes a bigger conversation.

Resources & Links Related to this Episode

• Wealthquest Get Started

• Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth

• Michael Riney

• Michael Riney LinkedIn