The narrative for this year has been surreal, as though it was scripted by Hollywood’s finest writers for a zombie apocalypse flick.  Unfortunately, this is not Hollywood, and the aftermath is here to stay.  What started with a global health pandemic, has led to over 200,000 dead.  Adding fuel to the fire is a nation politically polarized, an increasing wealth gap, the Black Lives Matter movement, California fires and the largest remaining portion of the Arctic ice shelf breaking off.  Then there’s record high unemployment, fears of a prolonged recession, and a resurgence of Covid-19 during cold and flu season, that could see a massive shortage of medication and ventilators.

 

As a Private Wealth Advisor, as a daughter, as a sister I’ve had some tough conversations this year, addressing fears.  This month, I want to share with you the most common fears I have come across:

 

1. Who will care for my children?

2. Do I have enough wealth to leave my family?

3. What if I become ill, or I’m unable to work?

 

 

“Fear to a great extent, is born of a story we tell ourselves”

- Cheryl Strayed

 

 

Barely through the starting gates of the year, January bought the demise of Kobe Bryant and his daughter Gianna.  Although a public figure, many found themselves relating to Kobe, the family breadwinner and a father to young children.  Over the years I’ve had many conversations around estate planning, concentrating on family.  The most difficult types of conversations are usually around planning for young children, and who will care for the children should one or both parents pass or become incapacitated.

 

If I can provide my readers with one takeaway, it would be to plan for the unknown, after all its oftentimes the fear of the unknown that keeps many of us up at night. A trust & estate plan, or a simple will can help alleviate much of the stress associated with end of life planning, advanced directives and the thought of someone else raising your children.  In my personal and professional experience, any decision making should be done during good times, and not under the influence of duress or heightened emotions.  Trust & estate planning can help to address uncertainties, helping to potentially ensure the care of your children is determined by you, and not the courts.

 

In the days that followed Kobe Bryant’s death, “life insurance applications jumped by 50% on the Tuesday after Bryant’s death, 52% on Wednesday, and 55% on Thursday, while the volume of submitted applications increased by 58% on Sunday, Jan. 26 — the same day as the crash — and 61% on Monday .”  Allowing me to assume many parents did not believe they had enough in life insurance or assets to leave their loved ones.  Although many parents may run out and purchase a life insurance policy once they’ve started a family, it has always been my recommendation to my clients that they first meet with a trust and estate attorney.  In my view, it’s important to find a professional who can help you determine how much life insurance is enough, and in the event a death benefit is paid out, who controls the funds. I mean, would you want your children inheriting your wealth at the age of 18, or the courts assigning a family member that is financially irresponsible?

 

My partners great grandmother passed away early this year, at the age of 110…  Although she passed away of old age, with early intervention, medical advances and technology, many American’s find themselves living longer.  Living longer may require a decline in quality of life, meaning some find it difficult to return to their regular routine. A disability or illness can hinder one’s ability to work, and therefore impact their ability to earn an income.  Many of us think of life insurance, “the truth is that during the course of your career, you are three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance.” 

 

The passing of Chadwick Boseman really hit home to many. Chadwick, a Marvel superhero, was diagnosed with colon cancer, 4 years ago and subsequently passed.  Shockingly, here in the United States, 1 in 2 people are diagnosed with cancer.  This does not mean, 50% of Americans die from cancer, however it does mean a portion of those diagnosed will need treatment that may take them away from their family’s and their work.  During the insurance planning stage of a client’s financial plan, I work to help uncover potential income gaps. , a system that helps to ensure Having a plan to help supplement income   sufficient income is paid should a client suffer from illness or disability is important. We review the pros and cons of Long-Term Care and/or Disability Income Insurance.

 

We live in a time with a lot of uncertainty, having a conversation with loved ones regarding life insurance and trust and estate planning can be daunting. In my view daunting or not, it is a conversation you do not want to put off.

 

 

“Thinking will not overcome fear but action will.”

- Benjamin Franklin

 

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Disclosures:

Advisory services are offered through Samra Wealth Management, a Member of Advisory Services Network, LLC. Insurance products offered through Samra Insurance. Advisory Services Network, LLC and Samra Insurance are not affiliated.

 

All views/opinions expressed herein are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC. All information contained herein is derived from sources deemed to be reliable but cannot be guaranteed. The information contained here does not constitute a recommendation or a solicitation or offer of the purchase or sale of securities.

 

 

 

References

Affordableinsuranceprotection.com. 2020. Disability Insurance Myths - What You Need To Know About Disability Insurance. [online] Available at: <https://www.affordableinsuranceprotection.com/disability_insurance_myths> [Accessed 29 September 2020].

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Cancer.org. 2020. Lifetime Risk Of Developing Or Dying From Cancer. [online] Available at: <https://www.cancer.org/cancer/cancer-basics/lifetime-probability-of-developing-or-dying-from-cancer.html> [Accessed 29 September 2020].

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Sports.yahoo.com. 2020. 'Anything Can Happen To Anybody': Kobe Bryant’S Tragic Death Led To A Life Insurance Boom. [online] Available at: <https://sports.yahoo.com/kobe-bryant-life-insurance-172357104.html> [Accessed 29 September 2020].

 

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