A smart foundation of any financial plan is to first protect what you already have. To protect your most valuable assets, if you will. Now, this means different things to different people. It will also mean different things according to your stage in life. It may be that your investments are structured to protect the capital you have already built up; or maybe you use a guaranteed income stream to protect a part of your investment income.
If you still have a mortgage, debts and dependant children however, insurance is by far the smartest and most economical way of protecting the financial well being of your family. It allows you to leave a debt free estate, have a disposable lump sum amount of cash in the event you suffer a serious illness, and will even provide you with income in the event you can't work due to sickness or injury. All this for a very small % of the amount you are protecting.
Insurance planning has come a long way over the years and so there are now some very effective ways of structuring your insurance cover and paying the premiums so that it all fits within your budget.
Insurance is a real financial decision though, so get advice. Different insurance companies specialise in different policy types and demographics. One insurance company may be perfect for 35 -55 year old chefs, whilst another may be spot on for 30 - 45 year old electricians. So, choosing an adviser who has access to a wide range of insurance companies and products will no doubt be beneficial for you.
Life insurance is one of those things that everyone needs but no one wants to talk about. The bottom line is that if you have responsibilities - spouse, kids and/or debts - then you need some form of life insurance.
Your income IS your most important asset. But, did you know that 1 in 3 Australians will be unable to work and have to live on nil income for 90 days or longer before the age of 65? If this happened to you TODAY, could you afford it?
Financial Planning Qld is a financial planning firm based in Brisbane, Queensland. We offer a full range of financial planning services and our advice is always underpinned by our Corporate Values. Click here to read more!