Questions you can ask your UBS Financial Advisor

  • How can you take care of insurance basics?
  • In what ways should you consider your health as you age?

Guide to insurance

Expecting the unexpected is not always easy, but it can be done.

One way to do it? Insurance.

Insurance can help you cover additional healthcare costs and ensure your lifestyle isn't going to change dramatically—right now or in retirement—if the unanticipated does arise.

Richard Kaufman, Director of Insurance for UBS, shares what you need to know about insurance and why it's a critical part of your financial planning.

Taking care of the basics

"All insurance is about protection," Kaufman says. "It's an integral part of protecting your wealth and your family."

Insurance comes in many forms. While you're likely familiar with life or car insurance, there are additional risks to your assets where insurance can help protect your family from loss.

One way is through property and casualty (P&C) insurance. P&C insurance is an umbrella term that Kaufman says is mostly about "protecting tangible goods in an event of a loss." This type of insurance can cover homes if there's a fire or flood; it can also cover valuable jewelry and priceless art collections.

Without P&C insurance, you could have to replace the cost of these items with your existing assets. For example, if your vacation home flooded during a hurricane and your wine collection got destroyed, you would have to pay to try and rebuild it.

Considering your health

When it comes to your health, there are other important considerations to factor in and be prepared for, in the event of an illness, injury or accident that can prevent you from working for the short term, long term or even the rest of your life.

Being unable to work can mean the potential loss of a substantial income, which can devastate not only your long-term retirement goals but your current lifestyle, as well.

When it comes to hedging against the loss of your health, look to disability and long-term care (LTC) insurance.

Disability insurance helps cover you in the event you are unable to work due to a disability. "It's really paycheck insurance," Kaufman explains. It can come in many forms for both short- and long-term periods.

Long-term care insurance is a cost-effective way to address the financial risks created by the need for care not covered by your health insurance or Medicare.

Kaufman notes, 'There are two different types of reimbursement benefits when it comes to LTC. This benefit is available in both a reimbursement or an indemnity form." Reimbursement policies will pay for the daily (or monthly) cost of your care, while indemnity policies will pay a monthly set benefit if you meet certain qualifications.

There are a number of different disability and LTC policy options, so talk to your advisor about the best choices for your needs.

Looking at the long term

Life insurance should always be included in your long-term plans. It's going to help take care of your beneficiaries and help them maintain their lifestyle and standards of living. It can also help pay off potential debts, including a mortgage.

It's always a good idea to talk with your advisor about the amount and types of life insurance that are going to be the right fit for you and your family.

One common option is indexed universal life insurance. It's a life insurance policy with the potential for cash value accumulation. You can allocate cash to a fixed account or to a crediting option tied to the performance of an index, such as the S&P 500. This provides another solution to accumulate additional funds and make sure death benefits are covered, too.

Kaufman emphasizes that it's essential to review your policy on a yearly basis. "There are things that happen in people's lives; they change jobs, they have another child, they buy a house—all things that can impact a policy."

At the end of the day, having the proper insurance is going to help cover your lifestyle and retirement needs if the unexpected does occur.


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