You can’t always protect yourself and your loved ones from life’s uncertainties. We don’t like to think about it, but we know that traumatic and tragic events don’t only happen to other people.
It is important to protect your home and car. And most people do. But it is also important to protect your life, your ability to earn an income, your health and your business interests.
Protecting loved ones from financial hardship should be an integral part of any financial plan.
The purpose of insurance is to protect your lifestyle by transferring major risks to an insurance company.
The most common type of cover is life insurance (term life insurance). Life insurance will pay a lump sum to your estate or specific beneficiaries in the event of death or in some cases, terminal illness.
This will assist when it’s needed most, giving your loved ones financial security and freedom to make choices about their future. It can also cover immediate concerns such as funeral costs and debts. The long term risks to their financial security can be alleviated by providing an income stream to replace the one that was lost.