Protecting yourself against adverse health events and accidents is a crucial component of a sound wealth creation strategy.
It would make little sense to focus on wealth creation only if a significant health event means you will not be able to reach your goals and secure your family’s existence.
However, insurances are not an investment and it is important to remember this when determining the right level of insurance cover. Premiums paid are opportunities forgone, hence our approach to insurance is a ‘safety net’ approach. Personal insurances provide you with peace of mind that should a significant health event occur, you and your loved ones are protected from a financial disaster.
At the same time, we do not believe in being better off after an insurance claim because you are insured for excessive benefit amounts, so the question is how much is needed for protection purposes, and not for ‘nice to have’ purposes.
The following four insurances comprise the suite of life insurances we will incorporate in our analysis for you:
- Life Insurance
- Total & Permanent Disability Insurance
- Income Protection
- Trauma / Critical Illness Cover
Generally, people with the highest insurance needs are families with young children and high levels of mortgage debt. The more you grow your overall net wealth and the less your children are dependent on you, the more you can generally start to reduce your insurance covers. However, there is no one size fits all approach as each client’s circumstances are different and will require a tailored analysis.