Around 4,500 years ago the massive, intriguing structures known as The Pyramids of Giza were built. These pyramids still stand today due to the strength of their geometrical shape. However, if there was a crack in the base of one of these pyramids, what do you suppose would happen? Yep, it would jeopardize the stability of the entire structure.

I would like to take a moment to examine the Life planning pyramid, which is a reflection of what is at the core our your life – such as faith, family, and home. Though often overlooked for its unattractiveness and the assumption that it’s really just a waste of time and money, insurance is the foundation of the Life planning pyramid. Another phrase for insurance is risk management, which I feel is a more accurate designation. Simply put, insurance protects you, your family, your business and your wealth. Without insurance or the appropriate amount of insurance, you are susceptible to a severe crack in your foundation that can shoot straight to the top, putting the entire pyramid at risk.

One of the first issues we address with a new client is risk management… or insurance. Think of it like Swiss cheese – the ideal might be American cheese, but the reality is probably Swiss. And unfortunately, it’s not a matter of whether or not there are holes in the cheese, but more a matter of how many there are and how big they are. It is important to periodically review every policy you own with your Life Consultant to locate these gaps and holes, as well as review current coverage. As a business owner, this is even more critical because you have more exposure to risk. When you meet with your Life Consultant, be sure to locate and have ready all of your policies: homeowners, automobile, business, liability, life, health, long-term care, disability and any other policy you might possess. I would estimate that roughly 99% of the clients we sit down with need to adjust something in one or more of their policies, usually within the suitability of the overall insurance plan, the adequacy of coverage, the cost effectiveness of the plan and adjustments needed due to Life changes.

So how will your Life Consultant discover these holes? First, consider what you would like your insurance plan to accomplish. This often needs to be a conversation between husband and wife, or parents and their children. Some questions you might want to consider are: How much can you afford to pay in the event you get sued for someone tripping over the water hose at your home and breaking his/her arm? Is it important to protect your assets and reduce the stress for your family in the event you need long-term care or become disabled? How much income would you like to provide your family in the event of your disability or death? Is the wealth you spent years accumulating valuable – or would you like the IRS to tax up to 50% of this wealth at the time of your death?

After you have identified your objectives, I recommend visiting with your Life Consultant about these goals in relation to your current policies. Keep in mind; this is an advisor who should understand your present situation and future, your feelings and your family dynamics. With this understanding, your Life Consultant will be able to help you create and/or adjust your overall plan in relation to your unique situation. These seemingly insignificant changes can surprisingly give you immense peace of mind.

Last, I would like to remind you that Life planning is not a single step; it is a continuous process…which must include your overall insurance plan. For many families, their wealth continues to accumulate over the years and circumstances change, which suggests adjustments need to be made in the foundation of their pyramid. For this reason, it is crucial to review your insurance/risk management with your Life consultant on a regular basis.