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Managing risk: Plan for your future, enjoy your present.

Article By Janik Hrabovcak | | Financial Planning

Why managing risk is your family’s pathway to financial security, even in the worst circumstances.

Research shows wealthy individuals tend to view managing risk as vital to long term investment success. While your investment selection and portfolio construction may take this into account, are you managing risk in the same way for the security of your family?

While you might not like thinking about the negatives, life can throw you some curve balls. You may be living well, saving, and supporting your family easily with your current income, but what if something changed? Imagine what would happen if you were not around to support your family as either the primary or a large part of the family income?

Putting down the groundwork for a successful financial future involves preparing for the unexpected and making arrangements to care for those you love.

What is life insurance? And why do you need it?

Life insurance is a legal contract between the insured (you) and your insurer (the company). A premium is agreed to, and a sum paid in the event of premature death of the insured.

If you are amongst the 50% of Australians who do not currently have life insurance (outside of super) some reasons you might want to reconsider your insurance strategy are as follows:

1. Take care of debt for those you love

If you were to pass away and you have loans, mortgages, or any other kind of debt that might impact your next of kin, you will want the assurance of life insurance covering that debt. Avoid a situation where family members are forced to downsize the family home or pay off other debts.

2. Security for your family

Insurance that provides an income or clears debt means your children can continue their education and ensure ongoing financial security.

3. Ease the pressure when the worst has happened

A sudden injury or death can be devastating to your family – being appropriately insured will mean you are able to ease the financial pressure, especially when they are going through an emotional time.

What cover is right for you?

It is always a good idea to seek professional financial advice before deciding to apply for a specific kind of insurance. Especially if you are looking to replace an existing insurance policy.

Cancelling a policy without carefully considering its features could mean valuable benefits are lost. Or that replacing the cover may end up being more expensive, perhaps if you have experienced a relevant medical issue since the first policy was obtained.

That is why, to understand what kind of life insurance you should apply for one of our financial advisers can clarify your needs. We will:

1. Understand what is important to you, your specific family & financial situation, and what would you need, should something go wrong.

2. Review your existing policies and determine:

  • What is your current cover?
  • Are there gaps in your cover compared to what you need?
  • What is the cost of your required cover?

3. Provide recommendations across:

  • Types of life cover appropriate to your circumstances
  • The level of cover appropriate to your circumstances
  • Strategies regarding ownership of your cover (super, non-super or company owned.
  • Which insurance provider is aligned with your requirements that gives you the best possible chance of a successful claim, considering holistically the policy benefits and features versus cost.

4. If you need to make a claim, we can manage the claims process on your behalf with your chosen insurer as a preferred provider. Overall, this provides a more stress-free claims process. This can be of huge benefit at an incredibly stressful time.

The benefit of a financial planner is that we manage all the paperwork needed and have conversations with the insurer so the claim can be paid in a timely fashion, so you (or your loved ones) do not have to.

Get in touch with an Altitude financial adviser to get the process started. Insure your family’s financial freedom and success through managing risk with the best personalised support available to you.

This website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure