Tranel Talks Column

Financial Planning: Understanding Insurance

Time to read: 2 minutes


A large part of financial planning is generational wealth planning. Generational wealth planning includes talking about insurance. We have all used insurance in many ways; car insurance, rental insurance, life insurance, and the list goes on. Some people cringe a little when they hear insurance. Insurance is simply an instrument that gives protection to you and your loved ones.

Insurance is a paid product. You must pay for insurance coverage, but what you are doing is insuring or hedging the risks that you own. Where you look at insurance, it is simply looking at the expenses that could impact you and your future generations and say how do I eliminate that risk?

That’s how you determine what you need for life insurance.

What financial risks are out there? For example, if you have some younger children, you and your spouse might want to have some insurance to help put them through college. Or if you have a mortgage that’s remaining, and you might want to make sure that that’s paid off. If you passed away, those situations need to be covered for you and your family.

The first thing you need to do it look at things that could impact your lifestyle. Number two, you look at the things that could impact your future generations and, how much do I need to avoid these issues in the future? Insurance is a great way to look at that.

Insurance is not the only product in your financial plan. Insurance is one vehicle to help you plan for the future and your loved ones after you have passed. When doing generational wealth planning, it’s important to also look at how your trust and/or wills are written. Our financial advisors can help you and an attorney write up a trust and/or will that include financial planning.

If you are looking for more information on retirement, please click here for more information on how The Tranel Financial Group can help you retire to reach your ideal financial life.

If you would prefer to listen, please click the YouTube Video below to listen to Tyler Braun, Financial Advisor, talk about generational wealth transfer.