Risk Life Insurance

In Your Interest Financial Planning provides Risk Life Insurance. We always look into each client's individual situation as to the most suitable policy. In many cases no insurance is recommended.

There are two major issues to consider with insurance:
1.    which cover (if any) you need
2.    the quality and value of the insurer and premium

Do you need Life Risk Insurance?

The four types of risk life insurance are:

• Life Insurance
• Total & Permanent Disablement
• Critical Illness
• and Income Protection

A lot of people sell insurance by playing on the fears and emotions of the client. This is not helpful for the client. Insurance should be looked at from a practical and unemotional point of view.

Below are a few scenarios:

• If you have dependants, it can be a loving and thoughtful gesture to provide for them or yourself in cases of your inability to work, sickness or death. Dependants include young children, a non-working spouse, relatives you support, a mortgage on your home.
• If you own a business together with other people, then life insurance is one of the best ways to ensure that your inheritors receive what your share of the business is worth and it allows the business to continue to run smoothly for the surviving owners.
• Some people are over insured, paying for policies they don't need. For example if you have no dependants and over $2 million in assets then insurance often is not needed.
• There are circumstances where people have held a policy for a number of years and the rate they pay is far less than they would get if they insured themselves now. Such people may well be best advised to keep their existing policies.
• Other people, especially those with young children, are often underinsured. Insurance costs little for most people under 40 and can make a great difference if the breadwinner of a young family dies.

As with all aspects of financial planning, each client's situation is unique and each client has different needs.

Quality of Insurer

Deciding what level of insurance cover you need (or not) is one part. The other very important part is the quality of the insurance.

Issues we consider include:

• The strength and claims paying capacity of the insurer.
• The insurer's claims paying history.
• The policy wordings offered by the insurer.
• The cost of the policy and the amount covered.

Please feel free to contact us for an obligation free discussion on your insurance
needs. We are happy to quote on insurance independently or as part of a
comprehensive financial plan.