Insurance and tax recommendations that fit the case
Insurance is about protecting the plan
Insurance recommendations should connect to a real risk: dependents, debt, income loss, health expenses, property loss, or liability.
Coverage checks
- Life: needed when others depend on the person’s income or unpaid care work.
- Disability: important when income is the household’s largest asset.
- Health: note deductible exposure and whether an HSA is available.
- Auto/home/renters: protect required property and liability risk.
Tax angles to remember
- Employer matches and retirement contributions affect taxes and take-home pay.
- Traditional contributions may reduce taxable income; Roth contributions do not today but may help later.
- 529 plans may provide state tax benefits depending on the state.
- Retirement withdrawals, inherited investments, and selling concentrated stock can create tax consequences.
- Education credits, dependent credits, and filing status can matter when children or students are in the case.