The first step in Financial Planning is protecting your current position, and the most important asset is you. Its not something anyone likes to think about, but unfortunately life is uncertain. You might not always have the luxury of the income you currently have. You could fall sick or have an accident or lose a family member, however in the event that this happens, having the right insurance products in place can help to provide you and your family financial security.
We will give you and your family peace of mind by preparing and securing your financial position and lifestyle with adequate insurance to pay off your mortgage and provide income for your needs.
Some of the different types of insurances we will discuss with you are:
- Life Insurance - Provides an agreed payment on death. Most schemes will provide a portion of the insured benefit on the diagnosis of a terminal illness with a prognosis of death within 12 months.
- Total and Permanent Disability (TPD) - Pays out on total and permanent disability such as quadriplegia or loss of sight. Some policies pay out when the disability prevents you from doing your usual job, while others pay out only when you can’t work at all.
- Income Protection - Insures your income and can extend to business expenses if you are self-employed. To encourage you to return to work you can typically only insure 75% of your income.
- Trauma Insurance - Pays out on diagnosis of certain conditions which might not necessarily be terminal. Examples include heart attacks, strokes or even severe burns
- Business Expense Insurance/Overhead Insurance - The Kennerlys Private Wealth team will advise on the risks that may impact the continuity of your business and recommend cover to protect you from financial loss.
- Keyperson Insurance - Key person insurance is a type of Corporate-owned life insurance which insures an employer against the death or incapacitation of a so-called key employee, usually an executive or partner
Budget & Debt Management
Kennerlys Private Wealth can review your current financial position and determine an immediate strategy to help you manage your finances. It is important to gain control over your current cash flow so that you can take part in the strategies of Wealth Creation. We will review your budget and show you how you can build up savings for an Emergency Reserve so that when you need extra funds for medical costs or home appliance replacement you will be more secure without putting your financial position at risk. Gradually you can be set on the path for increasing your savings so that you can provide greater security for your future with long term investments.
It may be that your debt is difficult to manage, we will review this for you and can look at consolidating your finances or reducing your debt so that you have greater control. Paying off your mortgage is the highest priority for most families, as it represents the greatest part of their budget outlay. We can look at how this can be restructured, so you can pay off your mortgage sooner, and be able to focus on creating wealth for a secure retirement.
We can assist you in identifying your Estate Planning needs and refer you to an Estate Planning Lawyer who is specialised in your needs. A Will is a legal document that sets out how your property and other assets are to be divided after your passing. Under the Will, an executor is appointed who will look after your estate. The executor must:
- Collect all your assets.
- Pay all your debts.
- Distribute your estate in accordance with your Will.
- A Will does not come into effect until after you die, so it is important that you think carefully about your Will.
To ensure that your estate is given to the people that you care about when you die it is important to prepare a legal Will. If you do not make a legal Will, your estate will be distributed using a fixed formula determined by the law. As a Will is a legal document, once we had assisted you with your estate planning strategy, we will refer you to a lawyer who can assist you with drafting your will and estate planning documents.
Just as a personal Will documents your intended treatment of your personal estate when you pass away, a corporate Will outlines the wishes of the business owners if one of the shareholders dies. Examples of documentation may include:
- Shareholders Agreements for companies;
- Partnership Agreement provisions for partnerships;
- Wills for sole traders;
- Unit Holders Agreements for trusts.
Kennerlys Private Wealth can assist you in identifying your corporate needs and referring you to a specialist lawyer who can prepare the necessary documentation.