Insurance Planning vs. Sales: A HNW Retiree's Guide

Episode 14 of Retirement Tax Matters explores the critical difference between being sold an insurance policy and actively engaging in comprehensive insurance planning, specifically tailored for high-net-worth retirees. We discuss why simply buying a product from an agent can leave you with policies you don't understand, versus working with a financial planner who integrates insurance into your broader tax and legacy goals. The conversation covers when life insurance is still necessary (such as for estate tax planning or special needs), why many retirees might not need it, and the importance of conducting a full inventory of your existing policies to identify redundancy. We also introduce advanced strategies like 1035 exchanges to repurpose old, inefficient policies into better-suited products like long-term care coverage. Finally, we highlight the often-overlooked necessity of an umbrella policy for asset protection and discuss how partially self-insuring risk can sometimes be the smartest move for HNW families. | Disclosures