In our busy day-to-day activities, we sometimes overlook a very important aspect of our planning: that of protecting ourselves, and our loved ones financially if things don’t go according to the Grand Plan.
Sure we provide financially for them now, but what about the ‘what ifs’?
If you currently have insurance in place, whether its default cover inside your superannuation fund or out, tailored or not; when last did you have a good look through it? Have a few years passed since you last considered whether your insurance is still relevant or more importantly, adequate? Maybe you’ve had a few changes since you first implemented your strategy.
This brings us to the point of this article: Have you had a major life event occur? Here are just four to consider, known to Advisers as review triggers:
Marriage or Separation
What happens when I Do, becomes I Don’t. Either event is a huge change to your life and when a thorough review of your financial situation is most critical. You need to assess your new financial needs, levels of debt and the need to provide some kind of protection for both parties. When going your own way, do you need to reduce cover? Update your beneficiaries? Increase personal protection? Maintain what you have until the property settlement is complete? There’s a lot to consider!
New job and income changes
You may have, or need to consider acquiring an Income Protection policy. Your ability to earn an income is your most important asset. Yet most will protect their house or car before this! Without an income, our lifestyle and material possessions cannot be sustained. If things have changed, ask yourself, does your new income reflect the amount you are currently covered for, are you paying too much in premiums? Do you have an agreed value or an indemnity benefit type? Do you know what waiting period was selected? Or how long you’ll be paid out in the event of illness or accident? All these factors could have a major impact if not done correctly and you’re suddenly unable to work.
Have you been remembering to claim the premiums at tax time?
New home purchase
New homes normally come with increased debt. Life insurance can cover this in the event of your death. But what if you become disabled or suffer a serious illness… how will be payments be made? What’s your Plan B?
Birth of a child
With an extra mouth to feed, your family’s income needs will have changed, and your expenses too! You may want to consider saving for future education expenses, taking out child cover to provide options in the event of major illnesses, and increasing your life insurance if you’d like to provide a legacy for your family.
If you have had one or more of these triggers, don’t you think it time to take action and do your review? Contact your Wealth Planning Partners adviser now to set up a time convenient to you. We also offer in-home visits or SKYPE calls if the 9 to 5 doesn’t suit you.
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Posted on October 7, 2014
Major Life Events mean Insurance Review time!
Tagged With: Divorce | finances | Income Protection | Insurance | Life Insurance | Marriage | Protection
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