Wealth Protection: What if?

A ‘What if’ a case study for you to consider:

Adam, aged 39, is a self employed IT consultant earning $84,000 per annum. Kate aged 35, is not employed as she has stopped working to raise their three children aged 8, 6 and 3. Their home has a mortgage of $410,000 and they have just put a deposit on an investment property to help grow their wealth.

If Adam were to die, an appropriate amount of life insurance would cover such things as debt repayment in full on both properties, every day living expenses for Kate and the children, childcare expenses if Kate were to go back to work, as well as the cost of the children’s ongoing education.

But what would happen if:

… Adam becomes totally and permanently disabled?

If Adam had a serious accident and was paralysed, or became severely handicapped, Total and Permanent Disability (TPD) cover would allow Kate to meet the costs of providing Adam with the medical attention he needed. It would also allow Kate and Adam to make the necessary modifications to their home to make life easier for Adam.

…Adam suffers a Critical Illness?

If Adam had a heart attack and had to undergo bypass surgery and was unable to return to work for seven months, Critical Illness cover can help meet the medical expenses and Adam’s foregone income.

…Something happened to Kate?

Adam is not the only person who needs cover. In the event of Kate’s death or disablement, it’s unlikely that Adam could stop work without sacrificing some or all of his current income. He may potentially have to look after the children himself or pay for additional childcare expenses. Sufficient protection for Kate is vital for the continual management of the family household in the event of her death or disablement.

… Adam dies?

If Adam were to die without adequate life insurance, most likely Kate would not be financially secure. She would need to return to work to continue mortgage repayments, pay for the children’s education and finance everyday living expenses. The right level of protection will ensure Kate and the children are financially secure and have adequate funds to continue life as they know it.

‘What if’ is a case study for you to consider, however, the reality is if something were to happen to you or anyone else in your family what plans do you have in place? Most people believe nothing will happen whilst reality is that it will, only when.