The Importance of Insurance – Life Insurance and Business Insurance

Financial protection such as insurance can help ease some of the stress at difficult times and ensure that financial worries do not add to your family’s emotional burden at time when they are least able to cope.

Your financial adviser can help you choose the right mix of insurance for you and your family’s particular circumstances.

Life insurance

A life insurance plan provides financial assistance in the form of a lump sum to your family or other dependents in the event of your death. The proceeds can be used to meet your family’s outstanding commitments, such as the mortgage on the family home, and to maintain your family’s standard of living.

In what can be an emotionally devastating time, life insurance removes one major stress – financial insecurity.

There are many other reasons why you might want to obtain life insurance:

  • to pay out any loans (mortgages and personal debt) in the event of your death
  • to buy a full share of a business if your business partner dies (buy/sell insurance)
  • to pay for your funeral

Business expenses insurance

Business expenses insurance covers your business against fixed costs like rent, lease arrangements and non-income producing employees’ salaries, should you suffer a serious sickness or injury.

The plan can cover you for up to 100 per cent of your eligible fixed expenses while you are unable to work due to sickness or injury.

How much insurance do I need?

There is no right or wrong answer to this question. What is important is that you understand how to calculate the amount of insurance that is right for you.

Following a traumatic event, an adequate level of insurance will allow you to pay off the mortgage and other debts, provide for your children’s education and allow your family to maintain their lifestyle.

You can structure your insurance to minimise your tax obligations. Give us a call to arrange a no obligation (and no cost) meeting to discuss your specific circumstances.