Personal Insurances and Estate Planning
Having a back up plan is essential when it comes to financial life planning and preparing for life’s unexpected events. Your back up plan includes the areas of estate planning and risk management planning or insurance.
Your estate plan which looks at developing a strategy and solution which will achieve the outcomes you would like in the event of your death or incapacity.
- Your Will: is the central part of any estate plan. It sets out how you want your assets to be distributed.
- Power of Attorney: operates in circumstances before death where you may be suffering from either a temporary or permanent legal disability and are unable to make decisions for yourself.
- Testamentary Trust: can be used in conjunction with a will to provide for ongoing control of your assets after death. It may be used when there is a concern that the assets are at risk particularly important for blended families, divorce or legal proceedings involving your children.
Insurances – Your Risk Management Plan
Insurances are important for you and your family in the case of unexpected life events. Lump sum or income replacement insurances is a crucial part of your overall back up plan if you do not have enough assets to self insure. Here are some of the essential personal insurances that you need to consider:
- Income protection cover: Income protection cover helps you meet your financial commitments by providing regular payments if you are unable to work due to sickness or injury.
- Trauma cover: Trauma cover provides you with a lump sum payment if you survive for 14 days after the occurrence of a serious medical condition (such as cancer, stroke or heart attack).
- Total and Permanent Disability (TPD) Cover: TPD cover provides you with a lump sum payment if sickness or injury leaves you totally and permanently disabled.
- Life cover: Provides a lump sum payment in the event of your death or terminal illness.It isn’t nice to go to the topic of death, disability or loss however it is important to have the discussion with your family members, partner and professional advisers.
Money Mechanics can assist you in planning for the unexpected so you can get on with the good things in life. Contact us and speak with one of our experts for independent personalised advice.