Insurance Planning

Many people will say they don’t like insurance. And yet, they would not dream of driving a car without adequate coverage. They could not imagine living with the possibility that they might amass huge medical bills and not have health insurance to pay the lion’s share of those costs.

Life is full of risks: illness, death, injury. Many of these can have tremendous financial consequences: The cost of educating children if the breadwinner were to die prematurely. The cost of confinement in a nursing home or of paying for care at home for an elderly family member. Who will pay the mortgage if a parent is injured and can’t work?

There are several ways to handle this risk. We can hope nothing bad happens. We can take on the risk and say we’ll deal with it if the worst happens. Or, we can transfer the risk to an insurance company. We pay a premium for health or life or disability insurance and, if something bad happens, the insurance company steps in to shoulder the financial burden. When they do, they often pay many times what we have paid in premiums.

Often, people will say, "I don't need insurance, that risk is very unlikely to occur." In fact, insurance is for risks that are not likely to occur, but which could be financially devastating if they happen. For example, we don't have health insurance to cover a cut on the finger, something which is quite common. On the other hand, we have health insurance to cover something such as a heart transplant. It is not likely to happen, but if it did, the cost could be catastrophic. That's when we are glad that we have insurance to step in and cover much if not all of the cost.

In addition to covering these risks, some insurance has an investment component. The cash buildup in these can be used towards retirement income or other financial goals.

At L.A. Financial Credit Union Investment and Insurance Services, our job is to help you assess the risks to which you may be exposed. We then help you to calculate the financial impact of those risks. Then, we provide you with the insurance products to help meet your needs.

New Clients: The credit union (through its broker/dealer, CFS) is currently recruiting for a new investment representative. You may contact our CFS Member Services Desk to be put on list to speak with an investment representative once an advisor has been retained.

Existing Clients: May contact the CFS Member Services Desk to inquire or make trades through your existing investment account.

CFS Member Services Desk Phone Number: 877.287.6638