Risk Management

Policy Reviews

Adapting to Change: Keeping Your Insurance Policies Up-to-Date

Life’s only certainty is change. Keeping pace with it, though, is a choice. Businesses that fail to adapt to technological shifts risk falling behind. Individuals not adapting to life’s fluctuations could find themselves in a precarious financial position. As our clients evolve, so too might their insurance requirements—often without them noticing.

Whether it’s life insurance, long-term care insurance, disability insurance, homeowners insurance, auto insurance, or umbrella insurance, all elements of a comprehensive financial plan warrant regular reviews

Through our policy review service, we pinpoint the strong and weak points in your existing policies, helping you determine if your coverage aligns with your current requirements. As a result, we might find gaps in your coverage, or discover opportunities for you to save money.

At Modern Wealth, we believe in ensuring your financial planning strategy adapts in tandem with the ebb and flow of your life’s journey.

Term Life Insurance

Affordable Protection for a Set Period

Term life insurance offers cost-effective reassurance for a predetermined span—typically 10, 15, 20, 25, or 30 years—with fixed premiums throughout this specified term.

Distinguished from permanent life insurance, term insurance doesn’t accumulate cash value. This feature keeps premiums lower. The general rule of thumb with any life insurance is—the younger and healthier you are, the less you pay per thousand dollars of coverage.

At Modern Wealth, we recommend convertible term policies. These are ideal for those who may require coverage for a longer duration than initially planned. The conversion from term to permanent insurance doesn’t necessitate underwriting or a medical examination, making it a viable choice for policyholders whose health may have deteriorated. However, stay alert! The conversion option typically has an expiration date, necessitating vigilant monitoring. As a Modern Wealth client, you can rest easy—we’ll send you a reminder when it’s time to consider conversion.

Universal Life Insurance

Flexible Premiums and Savings Potential

Universal life insurance (UL) enhances policy security by merging death benefits with a savings component, and offers convenience through flexible premiums and payment schedules.

When you pay premiums, they go directly to the insurance company. From these payments, the company deducts the insurance cost and other related expenses, then credits the remaining amount to a cash accumulation account. Policyholders can track the growth of their policy and view costs and interest rates by reviewing their annual statements. If the cash surrender value covers the yearly insurance costs, policyholders have the option to skip or lower their premium payments.

At Modern Wealth, we value transparency and want our clients to feel empowered and informed about their insurance decisions. We’re here to help guide you through the complexities of universal life insurance, so you can plan your future with confidence.

Disability Insurance

Protecting Your Income: The Asset That Fuels Your Lifestyle

From a financial standpoint, an individual’s greatest asset is their capability to generate income. This is the funding source that takes care of all the major expenses like insurance, retirement savings, healthcare, mortgage, and education, as well as the smaller, yet vital, things in life like holidays, extracurricular activities for children, and even pet indulgences.

However, most workplace group disability insurance plans come with limitations: they have a maximum coverage limit, are not transferable if you switch jobs, and can be terminated by either the insurance provider or the employer without notice. Therefore, it’s advisable to consider individual disability insurance to bridge any potential gaps in coverage. These policies can be tailored to suit our client’s unique circumstances, offering flexibility in areas such as:

Benefit Duration
This refers to the period an insurance company disburses a monthly benefit after a claim is made, usually until age 65, though other options are available.
Waiting Period
This is the duration an insured person must be disabled before benefits commence. A longer waiting period results in a lower premium.
Definition of Disability
This depends on the occupation and determines the payment method of benefits (Own Occ, Transitional Occ, Your Occ, and Any Occ).
Residual Benefits
This term refers to partial disability coverage.
Cost of Living Adjustment (COLA)
This feature allows benefits to incrementally rise based on an index or set percentage while on a claim.
Future Increases (monthly benefit)
This allows for potential benefit increases without additional medical qualifications once the policy is issued, sometimes tied to increases in income.
Additional Disability Insurance Considerations
Think about additional protection such as student loan protection, programs for new professionals, retirement protection, group disability, and for business owners: Business Overhead Expense (BOE), Disability Buy-Out (DBO), and business loan protection. We also offer specialty solutions for those in hard-to-insure occupations or high-income earners.

At Modern Wealth, we’re committed to helping you safeguard your biggest asset – your earning potential. Together, we can create a comprehensive insurance strategy that is customized to fit your lifestyle and future aspirations.

Long-Term Care Insurance

Insurance for Life’s Unforeseen Circumstances

Long-term care insurance (LTCi) is designed to assist those who might need help due to an extended physical illness, disability, or significant cognitive impairment, like Alzheimer’s disease, which hinders their ability to live independently.

Such conditions might prevent them from accomplishing essential self-care tasks, known as activities of daily living (ADLs):

Bathing
Dressing
Eating
Maintaining continence
Using the toilet
Moving around (transferring)

An LTCi policy steps in to offer benefits if the insured individual is unable to perform at least two ADLs or suffers from a cognitive impairment. The policy’s specific components and options may include:

Waiting Period
Also known as the deductible or elimination period, typically spanning 30, 60, 90, 180, or 365 days. During this time, care would have to be provided by other means or people. A longer waiting period equates to a lower premium.
Benefit Limit
This is the maximum amount the policy pays out either daily or monthly. We assist in determining the required benefit amount by considering the current cost of care in your area. Lower benefits result in lower premiums.
Age Factor
Similar to many insurance types, younger and healthier individuals receive more favorable rates.
Inflation Protection
Long-term care costs have been steadily rising. Inflation protection safeguards from increasing LTC expenses by mitigating the effects of inflation.
Partner Discount
This is available even if your partner doesn’t apply for a policy. It applies to both married and unmarried couples.
Shared Care
This feature combines partners’ benefits, enabling each one to access the other’s benefits.
Home Health Care
Considering that around 80% of individuals initially receive care in their homes, we suggest plans that allow full use of the benefits either at home or in a care facility.
Hybrid Policies
These combine different types of insurance into one policy:
Hybrid Life/Long-Term Care Insurance integrates permanent life insurance with an LTCi rider and guaranteed premiums.
Hybrid Annuity/Long-Term Care Insurance melds a fixed deferred annuity (which grows tax-deferred) with an LTCi rider.

At Modern Wealth, we help you navigate the complexities of long-term care insurance, enabling you to make informed decisions about your future care needs.

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