Crafting a Holistic Insurance Plan

2 Minute Read

Your insurance needs change as time passes and your wealth grows. Learn about insurance strategies to consider at each life phase.

Who helps you navigate the maze of insurance matters in your life? Is it the agent your family has worked with for years? A friend in the industry?

Trusted connections are convenient, but as your wealth grows, you need to make sure you have the right coverage within the context of your entire financial picture.

"Sometimes you have to divorce the product from the person selling the product to be certain that you’re getting the right coverage."

Warren Arnold

National Wealth Advisory Services Team Lead, Northern Trust

Ending these ties can be tough, especially if they’re personal. But not having the right coverage when you need it is much harder.

The importance of “when”

Plan for what you need currently. Think about the types and amounts of coverage you will need in the next stage of your life.

Navigating your options

Think about insurance like a risk management tool to mitigate the financial impact of death and unforeseen events. Arnold urges all of his clients to understand the full spectrum of insurance options in order to align their coverage with their unique needs. Here are some initial considerations:

Health insurance Avid traveler? Make sure that your domestic insurance plan covers medical visits abroad and medivac back to the U.S., if necessary.
Disability insurance Full income replacement from disability coverage is rare. Be mentally prepared for the necessary income and lifestyle changes that will happen if you have an accident, or contract an illness.
Life insurance Beyond just replacing income, life insurance can be used for estate liquidity, wealth transfer, philanthropy and business succession planning.
Long-term care insurance Consider what type of care is covered, how long the policy will pay and if it allows for inflation. A solid long-term care plan, set up early, can potentially save you hundreds of thousands of dollars.
Property/casualty insurance Your homes, vehicles (including boats and planes) and artwork are also valuable assets. Look for companies known for insuring such assets, and consider an insurer with relevant expertise if you live in a region prone to certain types of natural disasters.
Auto insurance Having coverage for underinsured or uninsured drivers is critical – and do not forget to cover all potential drivers on all of the vehicles you own.
Umbrella insurance This works well as a protection plan in the case of a major claim or lawsuit. Consider purchasing an umbrella policy with your home and auto insurance carrier to avoid gaps in coverage and to ensure full coverage of all your assets.

“Some clients, especially first-generation wealth creators, may not understand the magnitude of coverage they need.”

Warren Arnold

National Wealth Advisory Services Team Lead, Northern Trust

Ultimately, your financial security doesn’t solely depend on insurance. But the right coverage as part of a broader financial plan can prepare you for the unexpected.