PERSONAL INSURANCE
WHAT IS PERSONAL INSURANCE?
Personal Insurance is a fundamental building block in becoming a serious investor. If you are considering or already have an investment portfolio, mortgage, children or any other capital debt then you really need to consider the range of insurance options that are available to you and the benefits that they offer.
WHO NEEDS PERSONAL INSURANCE ADVICE (“RISK ADVICE”) AND WHEN?
Upon marriage or divorce - Purchase of a home or investment property
- Borrowing to invest or as your savings and investments grow
- Debt levels change
- Starting or growing your family
- Anyone with extended families from multiple marriages
- Change of job or level of income
- Entering a tradesperson career
- Starting or selling your own business
WHY DO I NEED PERSONAL INSURANCE?
Let me ask you a question… what do you think, at this moment in time, is your biggest financial asset?
When we ask this question most people say “my home”, well it may be a big asset but I believe your biggest financial asset is YOU and your ability to earn an income. Not only does personal insurance cover capital debt it also protects the one way that you provide for you and your family’s everyday needs of food, shelter and clothing. If you were to not be able to go to work tomorrow, and the next day, and the next day how would this impact your daily life?
HOW DOES PERSONAL INSURANCE WORK?
Lets examine a person earning $45,000 per annum, aged 30 and generally in good health. Statistically this person will work to age 65 - that’s another 35 years of employment. The potential income earned over that period of time without any increase in pay would be $1,575,000. That’s a big asset! In reality this income figure will be much larger than that.
If this person was to have an accident or illness today that prevented him from working ever again how much of the above figure do you think will be replaced by government assistance? We could answer this question after doing many complex calculations and making some very broad estimates, but most accountants would agree It’s very hard to give an accurate answer to that question. So why allow for any question of doubt when it comes to providing for you and your family in the future. Income Protection, Total Permanent Disability, Crisis Care and even Death insurance can give you peace of mind that your biggest asset is protected.
It’s never to early or late to obtain an insurance policy, Once you establish cover it cannot be taken from you but can be altered over the years to best suit your circumstances if necessary. Therefore, when you understand the need to obtain and maintain a personal insurance policy, and complete the process to obtain the insurance of your choice, you will rest easier, not so concerned about what will happen should you develop that nasty “family disease” such as diabetes, cancer or or heart problems later in life. However, if you wait until you body starts to present some of these symptoms, and lets face it - statistically 100% of people will die, your cover will be more costly, can be restricted, or you may be denied coverage altogether. So it pays to maintain your insurance policy even when you think that you are invincible. Age will determine your level of insurance and the quality of life that will be available now and in the future.
BUT WHAT IF I AM NOT HEALTHY – CAN I STILL APPLY?
Insurance companies have a special team called “underwriters” who assess each application. Depending on your current health they may require further information from you inregards to a particular injury or illness, a report from your doctor, blood test, perhaps specialist’s reports to determine the cause and effect of your current health problems.
The outcome of the underwriter’s investigation will determine how much cover, and the conditions attached to that cover, will be available to you. This can then be discussed with your financial adviser to determine if this provide the peace of mind you need.
TYPES OF PERSONAL INSURANCE
Here are the types of personal insurance you should consider:.
HOW DO I APPLY
The first step is to obtain quotes from the different companies that provide this type of insurance. To do that now simply complete the Insurance Quote Request, and we will contact you once we have completed all the quotes to provide you with the best product to suit you. This if a free, no obligation service and there is no commitment required from you until you are happy to proceed with our recommendation.
The second step requires completing an application form for the company you wish to use. We will work closely with you to walk you through the sometimes personal but necessary questions whether this be during a face to face meeting or in your own home at your own pace. This is then sent to be investigated by a team of underwriters (at the insurance company you have chosen) who will assess your application. At this point they may require further information, but we will assist the underwriters in this process and keep you informed at each stage of your application.
Once your application is accepted only then are you required to provide the monthly, quarterly, half yearly or yearly premiums (as chosen by you) to best suit your financial situation, and then you are covered for life!
At Lighthouse Financial Advisers we conduct regular client reviews to ensure the client has the best policy available, and you can also request this at any time should your circumstances change. You can also view your portfolio at anytime through your insurance companies website online facility.
Why risk all that you have worked for when you could be secure for the rest of your life in one easy step – so apply today and let us work together with you to provide peace of mind for you and your loved ones.