Risk Management
Preparing for the Unexpected
Because insurance helps protect us from the unexpected, it plays a crucial role in financial planning. At KFM, we offer services to help you mitigate risks that could be financially damaging. Some of the risk management tools at our disposal include life insurance, long term care insurance, and annuities.
Life Insurance¹
Life Insurance can be a valuable tool in financial planning, from the most obvious use of providing financial security for family members, to less obvious uses for estate planning and charitable giving. We are able to offer comparisons of life insurance products from a wide variety of insurance companies and products. We also have the ability to offer in depth analysis of existing life insurance policies in order to help identity any gaps in coverage that might exist or explore ways to reduce costs.
Long Term Care Insurance²
As life expectancies lengthen and costs of medical care rise, it is important for clients to consider what would happen to the assets they have worked so hard to accumulate over the years should they need long-term care due to a prolonged illness or disability. We work with clients to help identify the long term care strategy that best complements their current retirement and estate plans.
Annuities³
Since so few employers today offer defined benefit pension plans, we are finding that annuities, as part of a diversified portfolio, can potentially play a role in providing a cushion of a dependable stream of income. In addition to helping determine when an annuity is a fit for clients, we also have the ability to evaluate the fees, riders, and performance of clients' current contracts and help identify additional features which might be used to add value.
¹These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company.
²These policies have exclusions and/or limitations. Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. Please consult with your financial professional when considering insurance options.
³Any withdrawals may be subject to income taxes and, prior to age 59 1/2, a 10% federal penalty tax may apply. Withdrawals from annuities will affect both the account value and the death benefit.
