How strong is the foundation upon which your Financial Plan is built?
The very premise of a financial plan suggests a bullet proof position where all threatening circumstances have been considered and strategies are in place to ensure that financial objectives are met over the long term.
Why is it then that so many consumers who have spent their money wisely and saved for the future are left with exposure to financial ruin in the event of an unexpected disability or premature death?
The answer is likely that Insurance has never been integrated in the overall plan, and sadly any financial plan in the absence of risk management is incomplete and leaves the family in a vulnerable and often devastating position.
During the last century people purchased insurance because funds are required to deal with various needs which inevitably arise at the time of death. At one time insurance was purchased exclusively by family breadwinners to provide funds to pay off personal debts and funeral expenses and to provide a financial cushion for their beneficiaries. Still true in most cases, but other kinds of needs have arisen over the years for which insurance is required:
- The payment of capital gains tax
- Probate fees
- Charitable bequests
- Business owners needs (Key person insurance and collateral insurance to cover bank loans)
Most recently life insurance has evolved into a financial instrument which can provide significant benefits both
during lifetime and on death.
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