As we usher in the New Year, it is an opportune time to reevaluate our insurance needs. For many of us, this means considering a range of insurance policies beyond the standard house and auto insurance. As Wisconsin estate planning attorneys, we know how important it is to educate our clients and community on the importance of comprehensive coverage, which can include umbrella coverage, luxury policies for valuables, long-term care insurance, and specific business policies. We want to share with you in our blog just a few reasons why these may be necessary and how they tie into your overall estate planning strategy.

Let’s start with umbrella insurance. This form of insurance provides additional liability coverage beyond the limits of your homeowners or auto insurance. It is an essential safeguard against unforeseen events that could otherwise jeopardize your financial security. This type of policy becomes increasingly important as your assets grow, offering protection against large claims or lawsuits that could arise from accidents or incidents on your property.

If you own high-value items such as jewelry, art, or collectibles, a standard homeowners policy may not offer sufficient coverage. Luxury policies, also known as valuable personal property insurance, provide tailored protection for these items. They can ensure that in the event of loss, theft, or damage, you are compensated adequately, safeguarding not just the financial but also the sentimental value of your treasures.

Next, you may want to look at long-term care insurance. Long-term care insurance is designed to cover costs that regular health insurance doesn’t, such as the care needed if you develop a chronic medical condition, disability, or disorder like Alzheimer’s disease. As life expectancies increase, this coverage becomes crucial in protecting your assets from the high costs of long-term care, ensuring that your savings and estate are not eroded by unforeseen health issues.

For business owners, having a separate business insurance policy is vital. This coverage protects against risks unique to your business operations, including property damage, legal liability, and employee-related risks. It is an essential component of your overall business plan, ensuring that both your personal and business assets are shielded from unforeseen events.

While insurance provides immediate protection, Wisconsin estate planning is about securing your legacy and is the keystone in your financial security. Proper estate planning ensures that your assets are distributed according to your wishes, reduces estate taxes, and provides clear instructions for managing your affairs if you become incapacitated. It involves working with an experienced Wisconsin estate planning attorney to create the plan that represents what you want now, and well into the future.  

When you make your New Year’s resolutions, assessing your current insurance policies to ensure they align with your long-term estate plans is not just prudent; it’s essential. We know this article raises more questions than it answers.  As an estate planning and elder law firm, we urge our clients to take advantage of these tools and resources, ensuring comprehensive financial health and security. We want to help you protect your aging relatives. We encourage you to contact us and schedule a meeting with attorney Alan Hougum today.