Many folks judge the health of their financial plan based on how the markets and their investment accounts are performing. But a Life-Centered Financial Plan takes a much more holistic approach to your financial well-being — including covering some important "What If?" scenarios that you could be overlooking.

In our approach to retirement planning, tax-smart investing, and mini-retirement lifestyle testing, we emphasize protection just as much as growth — and life insurance plays a central role in this protection strategy.

The next time you meet with your financial advisor, review how your plan handles these three important areas:

1. Life Insurance & Other Essential Coverage

You've probably heard the joke that no one likes paying for insurance until they need it. But as your wealth and assets grow, the more important it becomes to have more than one safety net.

In addition to health insurance, homeowners insurance, and auto insurance, consider adding these additional protections:

• Life Insurance: Spouses and parents should talk through the pros and cons of various types of coverage to safeguard their families. Life insurance is also a powerful tool for long-term financial planning, especially when thinking about legacy goals and tax efficiency.

• Disability Insurance: Your ability to work and earn a living is one of your most valuable assets, especially if you're self-employed. Disability insurance can help replace some of the income that you would lose if you were sick or injured for a significant period of time.

• Umbrella Insurance: An extra layer of liability protection that kicks in when you've hit the limits of your other policies. For example, if you were liable for damages in a car accident that exceeded your auto coverage, an umbrella policy could help cover the difference or protect your other assets from seizure.

• Flood Insurance: Homeowners insurance typically covers damage from wind -- including tornadoes -- but not from flooding. Even if you don't live in a high-risk flood zone, changing weather patterns and the risks of extreme weather might make flood coverage worthwhile.

Planning for unexpected risks is just as crucial as planning for your ideal retirement lifestyle. Learn how we reverse-engineer financial goals in retirement planning.

2. Estate Planning

Much like a financial plan is about more than market returns, an estate plan is about more than who gets what.

Which is why estate planning isn't just for the ultra-wealthy. At the very least, every person needs:

• Last Will and Testament: Your last wishes and how you want your estate to be distributed to your heirs and any other beneficiaries.

• Power of Attorney: The person you name in this document will act on your behalf if you become incapacitated or unable to make decisions while you are still alive.

• Healthcare Directive: Explain how you want to be cared for medically in the event that you become incapacitated.

• Living Will: Designate someone to be in charge of making important medical choices for you if you are incapacitated or unable to make decisions.

Additionally, you may want to include:

• Access to digital assets, including account passwords and backups of personal digital media.

• A legacy letter explaining why you made certain decisions about your legacy plan and passing along memories and life lessons that are important to you. As part of this, a retirement and financial planning strategy can help ensure you have the resources and structure in place to make your legacy goals a reality.

Estate plans align with our belief that your financial life should reflect your values. If you're exploring creative ways to live out your legacy even before full retirement, check out our mini-retirement article.

Estate planning requires precision, and that includes taxes—see our insights on how a financial tax advisor can safeguard your legacy.

3. Goals and Life Transitions Before Retirement

Planning for your future shouldn’t come at the expense of enjoying life in the moment.

Life-Centered Financial Planning aims to provide for your needs and goals at every stage of your life, not just when you've retired.

So, think about the next five years. Ask yourself:

• What do I want to accomplish? Personally? Professionally? Financially?

• What am I doing every day, week, month, and year to move myself closer to those goals?

• What transitions can I see on my $Lifeline?

• What transitions should I be anticipating?

• Are there vulnerabilities in my plan that I should work with my advisor to shore up?

These big-picture reflections are powerful, but real change begins with the small steps you take daily — a theme we explore further on bettering yourself, one step at a time.

We specialize in helping folks answer these kinds of complicated questions and identify financial risks they may be overlooking. Schedule an appointment with one of our financial advisors and discuss how Life-Centered Financial Planning can point you beyond the markets and prep for the best life possible with the assets you have.

You can learn more or book a consultation directly on our website at LI Wealth Management Inc. —we’re here to help you plan smarter, live better, and protect what matters.

Many clients find clarity and confidence by testing their lifestyle goals before fully committing to retirement—taking short breaks, mini-retirements, or adjusting work-life balance to see what truly aligns with their values and resources. This approach helps reduce the risk of post-retirement regret.

Our article about Try a New Vacation expands on this by showing how purposeful travel can reveal what truly matters—helping retirees shape a lifestyle that reflects their values and goals.

In our article about What True Wealth Looks Like, we take this a step further—highlighting how living with purpose, not just testing lifestyles, becomes the compass for building a retirement that’s both financially sound and personally meaningful.

Learn more about this process in this financial planning outline, where we discuss achieving financial clarity through intentional living, and in our ultimate guide, where we help you define your personal “retirement number” with purpose—not just projections.

If you’re unsure whether your current coverage matches your future needs, our investment timing may help you decide when and how to act.