Death, Disability, and Making It: The Three Realities of Life Planning

When most people think of financial planning, they picture pie charts, account balances, and maybe a retirement calculator spitting out a “magic number.” Those tools can be useful, but they miss the bigger picture.

 

Money alone doesn’t create peace of mind. What people really want is security—knowing that no matter what life throws at them, they and their families will be okay.

 

That’s why at Life Planning Advisors, we look at financial planning differently. We focus on life planning. Because at the end of the day, there are three realities that every person has to prepare for:

  1. Death – the inevitable, and whether your loved ones will be secure after you’re gone.
  2. Disability – the possibility of an illness or accident that sidelines your ability to earn.
  3. Making It – living long enough to enjoy the life you’ve built without outliving your money.

These are not easy topics. But they are essential. And the good news is: when you plan for them, you free yourself from fear and gain the confidence to live fully.

 

Facing Death: The Hardest Conversation We Avoid

 

Let’s start with the obvious one: death. None of us like to think about it. Most of us avoid conversations about wills, life insurance, or end-of-life care until it’s too late.

 

But death planning isn’t really about you. It’s about the people you love.

 

I’ve sat with too many families who were forced to navigate legal and financial chaos on top of their grief. Accounts they couldn’t access. Life insurance policies that didn’t exist. Beneficiaries that were out of date, sending money to an ex-spouse.

 

The heartache wasn’t just emotional—it was financial.

 

 

What preparing for death looks like

 

A sound plan includes:

  • Estate documents: At minimum, a will, a power of attorney, and a healthcare directive. These documents make sure your wishes are carried out and that your loved ones aren’t left in limbo.

  • Life insurance: This isn’t about putting a dollar value on your life. It’s about making sure your family can continue without financial upheaval—mortgage paid, debts covered, college funded.

  • Beneficiary reviews: Accounts like 401(k)s, IRAs, and insurance policies often bypass your will and go straight to named beneficiaries. If those are outdated, money can go to the wrong person.

  • A family roadmap: Beyond paperwork, leave clarity. Write down where accounts are held, who to call, and what your intentions are. Some clients even write “legacy letters” to pass on values, not just valuables.

A story from the real world

 

A widow I worked with lost her husband unexpectedly in his early 50s. He was successful, but he hadn’t updated his will in over a decade. He had old retirement accounts scattered across employers, and no life insurance.

 

It took nearly two years of legal battles and paperwork to untangle everything. On top of grieving, she was forced into an exhausting process that could have been avoided with a few hours of preparation.

 

Planning for death isn’t about being morbid. It’s about love. It’s about ensuring the people you care about most are secure and supported.

 

Disability: The Overlooked Risk That Can Derail Everything

 

When people think of financial risks, they think of market crashes or recessions. Rarely do they think about what happens if they can’t work.

 

Yet the statistics are clear: 1 in 4 adults will face a disability before age 65. That might be an illness, a serious accident, or a chronic condition. For most families, even a year of lost income would be devastating.

 

 

Why most people are unprepared

  • They assume “it won’t happen to me.”
  • They rely only on employer-provided disability insurance, which often covers just a fraction of income and isn’t portable if you change jobs.
  • They don’t account for the ripple effect: without income, retirement contributions stop, debt payments stall, and financial stress skyrockets.

 

Building income protection into your plan

  • Disability insurance: Think of this as paycheck protection. If your ability to earn disappears, disability insurance keeps cash flow going.
  • Emergency savings: At least 6 months of expenses in liquid reserves. If you’re self-employed or the sole breadwinner, 12 months is better.
  • Wellness and prevention: Longevity planning isn’t just financial. Investing in your health—through preventive care, exercise, even wellness practices like I’ve personally been exploring—pays dividends. A healthier you is less likely to face a disabling event.
  • Business continuity: For entrepreneurs, having someone who can step into your role temporarily is critical.

A client’s experience

 

One client of mine, a high-earning attorney, was diagnosed with cancer in her early 50s. She had assumed her employer disability coverage would be enough. But when she looked closely, it covered less than half her income—and nothing for extra medical costs.

 

Because we had planned ahead with supplemental private coverage, she was able to focus on her health without worrying about losing her home or draining her retirement accounts. She told me later: “I can’t imagine what this would’ve been like if we hadn’t prepared.”

 

Making It: The Blessing and Challenge of Longevity

The third reality is the one most people hope for: living a long, full life. Thanks to advances in medicine, nutrition, and lifestyle, it’s increasingly common for people to live well into their 90s or even past 100.

 

That’s wonderful—but it brings new challenges. Outliving your money is one of the biggest fears I hear from clients.

 

The hidden risks of longevity

  • Running out of money: A retirement that lasts 30 years or more requires more resources than most people plan for.
  • Inflation: Over time, the cost of living can double, even at modest inflation rates.
  • Healthcare costs: Medicare doesn’t cover everything. Long-term care, assisted living, or in-home support can run thousands per month.
  • Lifestyle needs: Retirement today often means more than sitting quietly. Clients want to travel, support their kids or grandkids, and live actively. That requires funding.

 

Longevity planning in practice

  • Withdrawal strategies: A plan for how and when to draw from retirement accounts. Whether it’s a 4% rule, bucket strategy, or dynamic approach, the key is sustainability.
  • Tax-smart sequencing: Pulling from taxable, tax-deferred, and Roth accounts in the right order can extend the life of your savings dramatically.
  • Investment balance: Growth assets are still essential, even in retirement, to keep pace with inflation. But they must be paired with stability for income needs.
  • Healthcare planning: Long-term care insurance, hybrid policies, or intentional self-funding strategies can protect both your lifestyle and your heirs.

 

A couple’s story

 

I worked with a couple in their 60s who were hesitant to spend money in retirement. They had always been savers and worried that taking big trips or supporting their grandkids might leave them short later in life.

 

Together, we ran detailed projections and built a tax-smart withdrawal strategy. The numbers showed they could spend confidently, without jeopardizing their long-term security.

 

Today, they take two international trips a year and support their grandkids’ education. As they told me: “You gave us permission to live.”

 

Life Planning: More Than Just Financial Planning

 

What ties all of this together is a simple but powerful truth: real planning isn’t just about investments. It’s about life.

 

A pie chart can’t comfort a grieving spouse. A retirement calculator can’t prevent financial devastation from disability. An investment return can’t give you confidence your money will last until 95.

 

That’s why our approach at Life Planning Advisors is built around these three realities. We call it life planning, not just financial planning, because it integrates every part of your financial world with the life you actually want to live.

 

The framework looks like this:

  1. Protect the downside – with estate documents, insurance, and disability safeguards.
  2. Plan for longevity – with sustainable withdrawals, smart tax planning, and healthcare strategies.
  3. Align with your life goals – so money supports your vision of freedom, not someone else’s.

 

 

The Takeaway

  • Death, disability, and longevity are the three realities no one can ignore.
  • Preparing for them isn’t about fear—it’s about freedom.
  • With the right plan, you can ensure your family is protected, your income is secure, and your money lasts as long as you do.

This isn’t just financial planning. This is life planning.

 

Your Next Step

If you’ve been putting off your estate documents, relying only on your employer’s disability insurance, or wondering if your retirement savings will truly last—you’re not alone.

 

Most people haven’t addressed these realities fully. But the sooner you start, the easier it becomes.

 

At Life Planning Advisors, we help you build a plan that covers all three so you can live with confidence, not fear.

 

Ready to see what this could look like for you? Let’s talk.

 

 

 

 

Demystifying Economic Jargon

Economic news often comes with a slew of complex terms that can feel overwhelming. Understanding key economic indicators can help you make more informed decisions about your financial future. Here's a breakdown of five essential economic terms that frequently appear in market updates and policy discussions.

Producer Price Index (PPI)

The Producer Price Index (PPI) tracks the changes in selling prices received by domestic producers for their output. As a leading indicator of inflation, rising PPI values can signal forthcoming increases in consumer prices since higher production costs eventually lead to higher retail prices.

Consumer Confidence Index (CCI)

Published monthly by The Conference Board, the Consumer Confidence Index (CCI) gauges the overall optimism of consumers regarding the economy and their personal financial situations. A high CCI generally leads to increased spending and economic growth, as confident consumers are more willing to make purchases and investments.

10-Year Treasury Yield

The 10-Year Treasury Yield is a significant benchmark for interest rates across the economy. Rising yields can indicate expectations of inflation or economic growth, while falling yields may signal economic uncertainty or slower growth. Investors closely watch Treasury yields as they provide insights into the economic outlook and market conditions.

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure that examines the average changes over time in the prices paid by urban consumers for goods and services. As the primary measure of inflation, shifts in the CPI affect purchasing power. A rising CPI reflects increased inflation, which can erode the value of money, impacting how much you can buy.

Consumer Sentiment Index

Compiled by the University of Michigan, the Consumer Sentiment Index measures consumer attitudes toward personal finances, business conditions, and spending plans. Similar in purpose to the CCI, it provides additional insights into consumer psychology. While both indexes serve to gauge consumer confidence, they derive from different methodologies and samples. With an understanding of these terms, you are better equipped to interpret market fluctuations and align your financial strategies accordingly. Keep this guide handy for when economic terms cloud your thoughts, and consider sharing it with those who might also benefit from clearer economic insight.