family financial security - risk management planningFamily financial security is a strong foundation for happy and healthy family relationships. Show those you love that they are financially provided for, that they will be financially secure in the event of a serious illness, injury or other ‘health-related’ event in your life.

Personal Risk (Life) Insurance together with properly considered and prepared estate planning can lead to that family harmony, peace of mind – and security. How do your plans for the family who are dependant on you, ensure they could cope with the situation one of our advisers had to deal with a few years ago? Consider the following scenario…

Case Study

The family, starting at the senior level, includes Mum and Dad, three children (two of whom are married); and the other, a son, now a widower having recently lost his wife to Cancer. The latter son thus became sole parent to a young school-aged child. Mum and Dad are in their late-60s and have been retired for around eighteen months: the two married children each have two children who are either in day-care or school whilst their parents are in full-time paid employment.

Because the financial position of the widower son was not protected with adequate insurance on his wife, senior Mum and Dad are now called upon to assist with the before- and after-school care of the grandchild who has lost his mother. Consequently, they have chosen to postpone their further retirement travel plans for a period whilst matters settle down within the family.

What will be the situation if a serious illness, accident or other debilitating event strikes another member of this family?

We can imagine a number of possible scenarios, but apart from the emotional upheaval – and practical lifestyle changes – wouldn’t it be a whole lot better for all concerned if a family conference were to resolve firstly, a family financial risk management plan (backed with adequate, appropriate insurance policies) to ensure financial burdens are not added to the concerns; and secondly, an understanding of what the respective Wills and family care wishes of each member might be.

A carefully considered insurance plan will go a long way to ensuring the family financial security they yearn: it may include Life Insurance that pays a lump sum on the death of the insured; TPD Insurance that pays a lump sum should the insured become disabled (in satisfaction of the relevant policy definition); Trauma Insurance that pays a lump sum on diagnosis of certain illnesses; and Income Protection/ Salary Continuance Insurance that pays monthly benefits on the loss of work-time through illness or accident – and at levels calculated to meet the sort of costs that need to be covered for each event.

To minimise the financial stress that one of the perceived events might cause in your family, arrange a meeting with one of our experienced financial planners: currently there is no cost to you of such a meeting – but the potential for family financial security for those you love most will be appreciated should a claim occasion arise. We will help you with ensuring an appropriate Estate Plan and/ or insurance protection to keep the financial ‘balance’ in order. Phone our office (on 07-34213456), or use our website Contact Us facility on our website for prompt attention.

(This post was originally prepared for the October 2010 eNews under the title‘Who do you love?’: it has been occasionally updated and refreshed, most recently as at January 2019.)