Are you a provider?
If you are someone others rely on financially, what would happen if you passed away, became seriously ill, or were disabled? Would your loved ones be okay?
I've been in financial planning for nearly 20 years. During that time, I’ve helped build a successful firm that’s served thousands of people. Most people in my personal life don’t know that—and I usually prefer it that way. Unless friends specifically ask, I tend to keep work and personal life separate. I’d rather not spend a pool party talking about investing or insurance planning. I love my career, but I like to leave it at the office.
That said, I’ve come to realize that this approach might be doing more harm than good. Several families in my circle have lost loved ones this year—people who were still actively providing for others. These losses have made it painfully clear that the right financial choices can either ease or intensify the burden during life’s worst moments.
So, with that backdrop, I want to share three simple but essential planning steps every provider should take to help ensure their loved ones are not left turning to charity, extended family, or government assistance during a crisis.
1. Buy Term Life Insurance
Term life insurance is one of the most important—and most overlooked—parts of a provider’s plan. It’s affordable, relatively easy to obtain, and forms the foundation of your family’s financial protection.
There are two key decisions to make when choosing term life insurance:
a. Choose Your Term
This is the length of time the policy will cover you—usually 10, 20, or 30 years. Think about how long you’ll need to financially support your family if something happens to you.
b. Choose Your Death Benefit
This is the amount your loved ones would receive if you passed away. It can feel tricky to calculate, but it doesn’t have to be overwhelming. Ask yourself:
-How many years of income would I want to replace?
-Are there major goals I want to fund even if I’m not here (college, weddings, down payments)?
-How much have I already saved to support those goals?
Add up the total amount you’d need, subtract what you’ve already saved, and that’s your coverage need. If that’s too much math, a general rule is to multiply your annual income by 10.
Pro Tip: Use one of the many free life insurance calculators available online to get a fast, ballpark figure.
Once you’ve decided on your term and death benefit, shop around. You can purchase term life through your home and auto insurance carrier, online platforms, or financial planning firms like ours. Get multiple quotes, research the insurer, and apply. The underwriting process takes 1–5 weeks. If you plan properly, you’ll likely only need to buy this coverage once—unless your circumstances change significantly.
Sample Quotes
Here’s a reference for $500,000 in coverage on a 20-year term for someone in excellent health:
2. Develop an Estate Plan
Estate planning doesn’t need to be complicated. At its core, it’s about creating a playbook for what happens to your dependents, assets, and healthcare choices if you die or become incapacitated.
The basic components of an estate plan include:
-Beneficiary designations
-Last Will and Testament
-Living Will
-Trusts (if applicable)
You can create a plan using DIY tools or by working with an estate planning attorney. Costs vary depending on complexity and whether you go the professional or self-directed route.
A Cost-Effective Option
One of my favorite strategies, if available to clients, is to enroll in group legal benefits through their employer during open enrollment. These programs often cost under $20/month and provide access to estate planning attorneys at no extra charge. In many cases, you can build a complete estate plan for under $250.
Why it matters: If you skip this step, you’re letting the government and your family guess your intentions—and that’s not a great plan. With so many affordable tools available, there’s no excuse not to make your wishes known.
3. Get Long-Term Disability Insurance
Long-term disability (LTD) insurance replaces your income if you become unable to work for an extended period. It’s a critical part of your provider plan—often more important than short-term disability.
Statistics from the Social Security Administration show that a 25% of Americans in their 20s may become disabled before they reach normal retirement age. Consider this – if you are disabled and cannot work, your income stops, but your expenses may not. In fact, due to the cost of medical treatment, your expenses may even increase (SSA.gov, 2023).
Coverage Through Work
Many employers offer basic group LTD insurance covering 50–60% of your salary. It’s a great start, but it may not be enough if you're the main financial provider.
Supplemental Coverage
You can often buy additional coverage through your employer to bring your total protection closer to 100% of your income. It’s typically affordable and easy to secure.
Private Coverage
If your employer doesn’t offer LTD insurance, consider buying a private policy. Like life insurance, it requires an application and underwriting process and takes 2–6 weeks to secure. Your premium will depend on your income and how long you want the benefit to last.
Final thought: If you don’t have a disability plan in place, you're once again leaving your family’s financial security in someone else’s hands.
Closing Thoughts
There are many areas of financial planning I could write about, but these three—life insurance, estate planning, and disability insurance—are absolutely essential for anyone in a provider role.
I’ve sat with families who were prepared and families who weren’t. The difference can be heartbreaking—and completely avoidable.
If you're a provider and haven't addressed these topics, do it now.
If you already know where to go to get your plan in place, get started. If you don’t, someone on my team can help. We’re an independent financial planning firm with an incredible staff ready to support you.
If you’re in my personal circle and want to keep things separate, no problem. I’ll happily point you in the right direction. I don’t care where or how you get it done—I just care that you get it done.
We can grab a coffee, have a Zoom call, or even just chat over a beer—whatever works best to help you protect the people who matter most.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
No strategy assures success or protects against loss.