As independent financial advisors, protecting our clients' assets is an important part of what we do. That's why an analysis of insurance needs is a routine component of every financial plan we prepare.

Canby Financial Advisors is not affiliated with any one insurance company. Because of our independence, we can review a full range of products and recommend the insurance that we believe is best suited to meet your needs. We offer a full range of insurance products, including:

Life Insurance (term, whole life, or variable life)

Life insurance entitles the insured's beneficiary—usually a spouse or children—to a payment when you die in exchange for your annual premiums. The payment is usually designed to help the beneficiary pay off debts, such as a mortgage, and to replace lost income.    

• Term life insurance costs less, but provides coverage only until a designated term expires. If you are still alive when the term expires, your beneficiary receives nothing.
  
• Cash-value life insurance accumulates value over time. Policy owners can borrow against the cash value and even use it as a source of retirement income.
  
• Benefits paid from life insurance are not subject to income tax. When the policy is owned by an irrevocable life insurance trust, it can also be transferred free of estate taxes. Because of these twin tax advantages, life insurance can play an important role in estate planning, business succession planning, and charitable giving.
  
• There are many other types of life insurance to satisfy specific needs. Survivorship coverage, for example, covers the lives of two people—usually a husband and wife—and does not pay a benefit until after the death of both policy owners. Its advantage is that it costs less than two individual policies.

Disability Insurance

• Is your work coverage enough?
• Do you need supplemental disability insurance?
• Are you self-employed without any coverage?

Based on current disability rates, nearly one third of Americans will have a long-term disability before reaching retirement. A long-term disability is one lasting 90 days or longer. Nearly one in seven Americans will be disabled for five years or longer. In spite of these alarming statistics, 80 percent of the population has no disability income protection.

Disability coverage ensures that you will continue to receive income while you are disabled; however, not all disability policies are alike.  It is important to review the policy's definition of total and partial disability, exclusion clauses, and the waiting period before coverage begins. Disability insurance can be complicated. It is best to review your needs carefully with your financial advisor.

Long-Term Care Insurance

People are living longer than ever, but a growing number of Americans are unable to live without medical assistance. Nearly half of Americans 65 and older will enter a nursing home at some point in their lives, according to a LIMRA International Consortium Study. The average stay lasts two-and-a-half years and costs more than $100,000.

Medicaid covers long-term care, but is available only to patients with virtually no assets. Medicare covers only the first 20 days of skilled-nursing care, and only if it is preceded by hospitalization. Individuals who are ineligible for Medicaid and lack long-term care insurance must rely on personal savings to cover the cost of their care.

Those who wish to protect their personal savings and purchase long-term care insurance will need to plan ahead. If a major illness is diagnosed before coverage is obtained, it likely will not be covered, since pre-existing conditions are typically excluded. In addition, premiums increase dramatically as a person ages. To keep premiums in line, we recommend that clients purchase insurance with level-funded premiums and avoid insurance that places restrictions on renewal.

For a free consultation and to learn more about the insurance coverage you need to protect yourself and your family, contact Canby Financial Advisors.