The question is often asked as to how much insurance is needed to protect an individual or family should an event such as death or disability occur.
Whilst not an exact science, we believe that the reason to have insurance is to maintain lifestyle and that there are three considerations that need to be made when assessing the level of cover required to provide security.
These requirements are:
- covering your debt
- providing the survivor and family with on-going income
- securing your retirement funding
- Debt Protection
What is the current debt position and what is to happen to the debt should death or disability strike the income earner?
In the event of death or complete disablement the solution would be to use a term life and complete disablement policy structured to cover all current debt.
Income replacement and trauma benefits would provide further protection should the income earner be unable to work for a period of time in order to ensure continuity of the repayment of any mortgages or term loans.
- Survivor or Family Income
What are the ongoing income requirements for a family should a premature death or disability occur?
In the event of death or permanent disablement the solution is sufficient term life and permanent disablement cover to provide the surviving family with continuity of their current lifestyle. In other words for the family to be able to continue financially without the pressure of not knowing where their income will be coming from.
If you are unable to work as a result of a serious illness or accident continuity of income needs to be maintained and this would normally be covered by a combination of income replacement and trauma benefits.
- Retirement
What effect would a premature death or disability have on your plans to fund your retirement needs?
Funding requirements and plans for retirement could be at serious risk in the event of a premature death or disability, particularly for a single income family. Term life, complete disablement, income protection and trauma cover all provide security if the unforeseen happens.
We can help you assess your retirement needs and how to be sure you achieve them.
“I’d held my Life and Disability insurance policy for 10 years...I contacted Penberthy to discuss the new premium. During the meeting, I casually mentioned that five years ago I had undergone open-heart surgery and I didn’t claim. The broker immediately investigated the policy and found out that it contained no exclusions. We worked together to put in the claim and two weeks later I received $175,000.”
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