Insurance Planning

As important as saving and investing are to reaching your goals, so is managing the risks that can threaten those plans.

Insurance should be thought of as a risk management tool, and as something that provides protection for you, your estate and the people that you love.

Here at Scarborough Financial, we use detailed financial planning software powered by e-money called Wealth Vision.

This holistic approach allows us to review our clients’ entire portfolio regularly to help identify potential risk and provide strategies for adequate protection.


Below is a list of insurance choices and some of the risk management they provide.

Life Insurance 

Whether it is term life, permanent life or a more complex policy, we have the strategies to help protect you and your family. Life insurance is used to cover expences that you are not here to cover yourself. Everything from funeral expenses, income replacement, college funding to things like taxes, chartiable gifting, and estate planning can be covered with the appropriate life insurance policy. 

Disability Income Insurance:

Individual disability income insurance helps preserve a portion of your income and provides financial protection if you become disabled for an extended period of time. Your ability to earn an income is one of your greatest assets and disability income insurance is a way to insure against the loss of that ability. 

Long-Term Care Insurance:

Among 65-year-olds, 70% will use some form of long-term care in the years ahead, according to the U.S. Department of Health and Human Services.

Regular health insurance doesn’t cover long-term care and Medicare only covers short nursing home stays or limited amount so of home health care when you require skilled nursing or rehab. It does not pay for custodial care, which includes supervision and help with day-to-day tasks.

Paying for these expenses yourself can be very expensive and you won’t be able to qualify for help through Medicaid until you have exhausted most of your savings.

Buying long-term care insurance might not be affordable if you have a low income and little savings. The National Association of Insurance Commissioners says some experts recommend spending no more than 5% of your income on a long-term care policy.

People primarily buy long-term care insurance for 2 reasons:

To protect their savings: Long-term care costs can deplete a retirement nest egg quickly. The median cost of care in a semi-private nursing home tops $80,000 a year, according to Genworth’s 2016 Cost of Care Survey.

To give you more choices of care: As with most things, the more you can spend, the better quality of care you can get. If you have to rely on Medicaid, your choices will be limited to nursing homes that accept payments from the government program.


Cited from NerdWallet


What are Annuities?

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You buy an annuity by making either a single payment or a series of payments. Similarly, your payout may come either as one lump-sum payment or as a series of payments over time.

Guarantees are based upon the claims paying ability of the issuing company.

Why Do People Buy Annuities? 

People typically buy annuities to help manage their income in retirement.

Annuities provide three things: 

Periodic payments for a specific amount of time. This may be for the rest of your life, or the life of your spouse or another person.

Death benefits. If you die before you start receiving payments, the person you name as your beneficiary receives a specific payment.

Tax-deferred growth. You pay no taxes on the income and investment gains from your annuity until you withdraw the money.

Please note that:

Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. 

Gains from tax-deferred investments are taxable as ordinary income upon withdrawal.

Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. 

Variable annuities are subject to market risk and may lose value.