While I love setting up a good offence for my clients, I know it's just as important to build a solid defence.
I am a Financial Planner, and I hate life insurance...
I have a great job! As a financial planner, I work with people to discover their dreams, map out a unique financial plan and help them reach that vision. But, of course, like all jobs, there are some parts I dislike, and for my professional, there is nothing I detest more than life and income insurance.
Life and income insurance is a basket case to navigate. Each insurer will take different stances on legal wordings, medical history and occupations. Then you must navigate the various structures inside and outside super, ensuring the proceeds are paid to the right place to secure maximum asset protection and minimise payable tax… geez!
So, why do I work in this space…?
A financial plan is only as good as its weakest link. A person or family's wealth is dictated by the money they earn in the future; this is often MILLIONS of DOLLARS. These future earnings allow you to pay off your home and save for retirement. So what will your future look like if your income ended today and you never earned another cent? Unless you win the lottery, life will become pretty tough.
I speak to clients who would never drive their $30,000 car without comprehensive insurance in place. Yet, they won't insure their lifetime income worth $3,000,000 plus. So, I ask why do you have car insurance in place? Their response often relates to the cost of replacing the vehicle. But $30,000 is a drop in the ocean compared to losing over $3,000,000 in lifetime income.
And that's why we do it. Because while I enjoy setting up clients with a good offence through wealth-building strategies, it is just as important to have a good defence; that's where life insurance comes in.
Here are a couple of questions to ask yourself:
If you had a machine in your shed that just printed money, would you insure it? Are you not that very machine that needs insuring?
Could you pay all other 'important' insurances such as car, health, contents and home insurance if you could not work and your income stopped for a sustained period or forever?
Finally, all insurances are not created equal! The default amount you receive with your super fund is often critically less than you need and is not underwritten, meaning they can decline or cease your cover at their discretion. Therefore, it's worth making sure your insurance contract is fit your purpose and is tailored to your needs.
Give Prosperity Wealth + Advice a call to discuss how to secure your lifetime income.
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