Personal Insurance FAQs
Having personal insurances is like a home with a strong foundation. We all have dreams, many of these dreams consist of having a happy and content family, many of us inspire to starting a big business too. These dreams don`t become reality unless we make sacrifices and work hard. It is these dreams that we need to protect because all it takes is a small incident or a sickness or even death that can lead to these dreams crumbling before our loved ones and us. Why leave ourselves, our near and dear ones so vulnerable and open to such risks in life. Accidents do happen, death is something none of us can avoid either. Yes, we are fit and healthy but this is exactly the time, the insurance companies will accept you in their pool of insured without loading your premium, excluding certain issues with your health or even declining your insurance. It is when you are fit and healthy, the insurance company will accept you at standards rates.
If cash-flow is an issue, please let us know. At investlink group we do have a solution for you but most importantly protect your family and your assets.
We are absolutely glad that you have an insurance policy in place to protect your family, your assets and you. However, give us an opportunity to look at this and have a second glance on the structure and amounts of insurances in place. We at Investlink Group are firm believers that an insurance is not about getting a cheap premium or a short term fix to protect your most important assets. We like to ensure that the insurances are structured correctly, if you have been guided correctly on Stepped and Level premiums and many other insurance features that most clients don`t know about.
Stepped premiums have a lower initial cost. Your premiums will be re-calculated on each renewal date of your policy based on your age at the time. This means stepped premium will generally increase from year to year in line with your age.
Yes, stepped premiums have some advantages as you can you reduce the sum insured over time to match your insurances requirements at the time. For example, if your children move out of the house, your debts are starting to significantly reduce.
Level premiums on the other side have higher premiums early in the policy in comparison to stepped premiums, the level premiums do not increase significantly over time. There are significant benefits to this; as you can retain your sum insured over a long term and it allows the premiums to be affordable in the long term too.
Many of our clients have great investments stratgies in place, many wealth creation strategies usually involve requiring debt levels to rise usually using equity in owner occupied property to buy other investment properties and equities. Whilst, we don`t like to think about it, theres always a chance you could potentially suffer an early death or have extended time off work due to sickness and or injuries. This can leave your loved ones and you in some serious financial problems. The 4 most common types of insurances available are:
Death Cover - A lump sum payable to your dependents in the event of your death.
Total and Permanent Disability - A lump sum payment made to you, or your legal representative to help your family and you should permanent disability stop you from working again.
Trauma - A lump sum benefit on diagnosis of a specified event. Its designed to help people financially following a trauma or crisis such as heart attack, stroke, cancer or other life threatening condition.
Income Protection - A monthly Income for you and your family should sickness and / or injury temporarily stop you from working.
The amount of inurances would really depend on your Income, savings, assets, expenses, liabilities, number of dependants and timeframe for when replacement income would be required. An accurate assessment of your income is essential; as this is what you and your family will need to live of if an unforseen incident does occur.
At Investlink Group we like discuss all these issues with you and provide you with the most suitable insurances for you and your loved ones. We also ensure that these insurances are structured in the most tax-effective and cost effective manner.