Why Insurance Deserves a Seat at the Planning Table
For many Gen X families I work with, life is a balancing act. You’re earning well, but you're also paying down mortgages, funding college, and possibly supporting aging parents. Amid those demands, it’s easy to focus on growth through investments and savings and put insurance on the back burner.
But here’s the truth: a strong financial plan doesn’t just build wealth, it protects it.
The right insurance coverage can act as a stabilizer when life doesn’t go according to plan. In this article, I want to share how I think about the role of life, disability, long-term care, and liability insurance in mid-life planning, and why this chapter is the right time to strengthen your protection.
A Real-Life Example: When Coverage Changes Everything
I once worked with a couple in their early 50s, both working, with two kids and a lot on their plate. Like many people their age, they felt a little behind on retirement but weren’t especially concerned about insurance. After some conversation, we focused on their disability coverage. She had minimal group coverage through work, and he had none.
Eventually, she agreed to get an individual long-term disability policy. It wasn’t long after, just nine months, that she was diagnosed with a rare autoimmune condition that made full-time work impossible.
That one policy, costing about $150 a month, ended up covering 60% of her salary, tax-free. It meant they didn’t need to tap their retirement savings or sell their home. Her benefits also helped bridge the gap until she qualified for Social Security disability. The coverage gave them breathing room to adjust their financial plan instead of abandoning it.
Why Mid-Life Is a Key Moment for Risk Planning
In your 40s and 50s, protection often takes a backseat to more visible goals. You might be focused on paying tuition, managing your mortgage, or catching up on retirement. But this stage of life is actually a prime time to review your insurance:
When I work with clients who feel behind on protection, I approach it without judgment. We start by reviewing what they already have—life or disability policies, retirement accounts, and home equity. From there, we identify any gaps and create a timeline that aligns with their broader goals.
Life Insurance: Flexible Protection for Evolving Priorities
Life insurance often starts with a mortgage or young children in mind. But your needs don’t disappear when the kids head off to college. As your financial picture changes, so should your insurance coverage.
Some considerations I walk through with clients:
Disability Insurance: Your Income Is Worth Protecting
Most of us insure our homes and cars. But far fewer people insure their income, even though it is the asset that makes everything else possible.
Even if you have coverage through work, it’s worth checking the details. Here’s what I typically look at with clients:
An individual policy can fill the gaps and provide peace of mind, especially if you’re the primary earner or your household relies on two incomes.
Long-Term Care Insurance: Planning Now for the Future
Long-term care insurance is one of the most commonly overlooked pieces of protection, and also one of the most impactful.
In Massachusetts, the average cost of assisted living is over $7,000 a month. A three-year stay could easily cost $250,000 or more. That’s not something most families can absorb without affecting other priorities like retirement or inheritance.
There are a few paths to consider:
|
Option |
Pros |
Considerations |
|
Standalone LTC |
High benefit levels |
Premiums can be expensive and may increase |
|
Hybrid life/LTC |
Provides LTC coverage or death benefit |
Higher upfront cost; some offer return-of-premium |
|
Self-funding |
Full control |
Requires earmarking significant assets now |
Many people assume Medicare will step in, but it offers very limited support for long-term care. And relying on a spouse or child to provide care may not be realistic or sustainable.
Umbrella & Cyber Liability: Guarding the Wealth You’ve Built
An umbrella policy adds $1 million or more of extra liability protection on top of your home and auto coverage. It can step in if a major car accident, dog bite, rental-property incident, or even an online defamation claim exceeds your base limits. The first $1 million typically costs about $150 – $300 per year, with national averages around $380.
When I Usually Recommend a Coverage Review-
Premiums for umbrella policies and the newer personal-cyber endorsements have been rising as insurers tighten underwriting, so locking in coverage sooner rather than later can be smart. Match your umbrella limit to your current net worth plus future income potential, then revisit it after any major life change such as a business sale, a significant market upswing, or a new high-profile position.
Integrating Insurance with a Tax-Smart Plan
Insurance isn’t a distraction from your investments, it is part of a strong financial foundation.
When insurance is integrated thoughtfully, it supports your long-term goals rather than competing with them.
A Final Thought: Peace of Mind Is Part of the Plan
Your financial plan is more than numbers on a spreadsheet. It’s about your family, your time, and your peace of mind.
Insurance isn’t about fearing the worst. It’s about making sure that even if the unexpected happens, your goals and values stay intact.
If it’s been a while since you reviewed your coverage, it might be a good time to prioritize this important (if unexciting) task. With my clients, we look at the full picture and make sure every piece—investments, taxes, and insurance—is working together to support their future. If you’re looking for that kind of relationship, I can help you prioritize what matters most and build a plan that protects everything you’ve worked hard for.