Risk Services
For most people with a wealth creation plan in place, debt plays a vital role. But with any form of debt comes a certain degree of risk that, if it is not managed properly, can result in devastating circumstances.
Consider for a moment what would happen if you suddenly became ill or disabled and were unable to earn a regular income. Worst still, how would your family cope nancially with your unexpected death?
Without a proper plan in place, you could seriously risk the ongoing viability of your lifestyle, family and wealth creation strategy.
Managing the risks associated with life’s unexpected occurrences One of the best ways to manage the risks involved with a sudden loss of income or life is with the right insurance cover. Without it, you or your family could nd their nancial security jeopardised. A proper insurance plan essentially transfers the risk from the “insured” person to the “insurer” (insurance company) and is an e ective means of protecting your wealth, assets, income and future plans.
The Problem
A person's death or disablement can result in the following immediate financial problems:
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Forced Disposal of Assets
Without adequate revenue (income) or a lump sum payment, assets may have to be sold when creditors press for payment.
Lenders may not feel con dent in your capacity to service debt and your credit rating could fall. Other outstanding loans owed may also be called up for immediate repayment.
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Loss of Revenue (Income)
A drop in revenue (income) is often inevitable when a person dies or becomes disabled unexpectedly. Without adequate revenue (income) you and/or your family’s lifestyle and debt servicing capabilities could certainly be in jeopardy.
Think it won't happen to you?
DId you know that research has shown that in relation to mortgage foreclosure, for every home lost to fire, there are 4 homes lost through death and 48 homes lost through disablement.
The Solution
To overcome the fi nancial problems that result from a person’s death or disablement, you need a readily available cash reserve. For most people however, it would be virtually impossible to accumulate an adequate amount of cash for such an occurrence.
Wealth protection insurance can provide the required cash on a person’s death or total and permanent disablement, or their diagnosis of a trauma / critical illness, and at only a fraction of the costs of alternatives.
The two basic wealth protection needs that can be addressed with wealth protection insurance are
Asset Protection and Income Protection.
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Asset Protection
Asset protection can provide you and / or your family with a su cient lump some of cash to help preserve your asset base through repaying debts and freeing up cash ow if a person dies or ispermanently disabled.
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Revenue / Income Protection
Revenue / Income Protection can provide regular cash payments to compensate for the loss of revenue / income, if a person dies or becomes disabled.