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Self Managed Super Funds – SMSF
  • HOME
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    • ADVANTAGES
    • SUPERANNUATION
    • THINKING ABOUT
    • FAMILY SUPER FUNDS
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Feb 15

A bright future and a bold ambition need the backing of a brilliant plan

  • February 15, 2013
  • smsf strategies

Building a free and independent lifestyle needs more than just a drive to succeed and the skill to make it happen. It takes one of two other ingredients; good luck or good planning.

The dream to be rich, free and happy
We all have different definitions of success. For most of us it is the desire for financial independence, an aspiration to choose our own path in life and ultimately, a drive to achieve a sense of fulfillment and happiness.
Chances are you have already taken the right steps toward these goals:

  • through education
  • buying your first home
  • establishing yourself in a rewarding career or business
  • starting a family
  • implementing an investment plan, or
  • enjoying life experiences such as travel, sporting activities and entertaining friends.

It’s natural to assume that we can control our progress toward these and other goals through our motivation, hard work and perseverance…and often, if we are lucky – we do.

You are free to choose luck, and hope that a tragedy doesn’t strike and you won’t suffer from a serious illness or injury, or that unexpected death won’t disturb the secure and comfortable life you want for you and your family. But fortunately, you are also free to choose a more financially secure future.

Why not take the opportunity right now to explore your options and make a conscious choice about your future, rather than leaving it to chance?

No one plans to get sick, injured or to die prematurely, but you can plan to provide a cash cushion if you or your family are ever unfortunate enough to be affected by these events. It’s all about retaining control of your financial independence even if you lose the ability to earn a living through your own efforts.

Through effective planning and provision for events that threaten your life, you can safeguard the financial future for you and your family. It is within your control.

The four pillars of protection

You can effectively and economically immunise your financial future against these risks using a combination of four basic types of cover:

  1. Income protection insurance to provide a replacement monthly income if you are temporarily sick or injured.
  2. Critical illness insurance to provide a lump sum of cash if you are diagnosed with one of many specified medical conditions, such as cancer, multiple sclerosis and heart attack.
  3. Total and permanent disability insurance to provide a lump sum of cash if you become totally disabled and are unable to work ever again.
  4. Life insurance to provide a lump sum of cash upon death or terminal illness.

A combination of these insurances can give you the financial resources to maintain or adjust your lifestyle and ensure that you are able to care for yourself and your family with confidence and dignity.

Good economic sense

The advantage of owning personal insurance is that you can make relatively small payments and instantly create a huge pool of contingency capital and income. When you compare this concept to the alternatives, it represents a vastly superior economic proposition:

  • saving for such contingencies yourself may take years and you will only ever receive dollar for dollar plus any investment returns
  • relying on social security may only provide you with a fraction of the income you need or are accustomed to, and
  • dependence on relatives or friends would cost nothing, except maybe your dignity, but is unlikely to be a secure or sufficient long term source of income.

 

A skilled planning partner

Putting your protection plan together is best accomplished with the help of a professional insurance adviser who specialises in risk management. Working together can be a rewarding experience as you create security and protection around the financial future of those you love. It may be the most significant step toward financial freedom that you ever take.

To find out more, contact your Financial Adviser  today, and discuss your life insurance protection plan.
 

Source: TAL, November 2012
 
 

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