Life Income Cover

July 6, 2017

 

 

WHAT IS LIFE INCOME COVER?

 

Life Income Cover is a unique financial solution, especially when it comes to financial planning and assessing how much someone should be insured for.  The answer is subjective and depends on what your current and future financial commitments are as well as your priorities and budget.

 

During this risk assessment process, it is common to hear that you should be insured for millions, especially if you want to leave your surviving spouse and dependents the household income you were generating.

 

Life Income Cover is a great solution and can form a very important part of your family’s financial future.

 

LIFE INCOME COVER

 

In the case where you may need to insure for millions, your Life Income Cover benefit can remove a lot of the financial risk which comes from receiving such a large amount of cash.

 

For example, if you needed to insure for $2M and then at the time of your death the insured amount of $2M is paid to your spouse. Your spouse has now become a millionaire and is now at risk of making poor financial decisions, which could lead to the partial or even complete loss of such a large amount of money.

 

THE FINANCIAL RISK

 

In times of grief and loss, the surviving spouse (male or female) is not normally in a state of mind to manage such a large amount, and possibly even after such a recovery period, they may not have the skills to manage such a large amount of money.

 

Well-meaning friends suggest property, or shares, or talk to their investment adviser and so on.

 

I am not saying that any of these are wrong, what I am saying is that there are risks, and they should be managed.

 

REMOVING SOME OF THE RISK

 

This is where Life Income Cover can remove or substantially reduce financial risk.  Let’s say for example, you did need $2M of over.  What you could do is insure for $1M and have $100,000 per year paid to you as an income over 10 years.

 

This way you are not exposed to losing all your money through mismanagement or poor investment choices.

 

Part of your initial assessment for $2M may have been a requirement to leave an income for your family for 10 years, so instead of getting all the money up front, you can have it paid to you over a set period and therefore gets used as intended.

 

CHOICES

 

Life Income Cover provides more choices when it comes to managing the financial risk to your family, and when used properly and alongside other types of cover can really be a suitable option if you wanted to leave your family a set income for a set period such as 5 years, 10 years etc.

 

Life Income cover is not based on your actual income or occupation, it is a simple product where you choose the income you want to leave your family each year and how long you would like this income paid to them.

 

If you have any questions about Life Income Cover and would like to discuss how this would work for you, then please contact us anytime.

 

If you are not completly certain that your coverage is in line with your family’s needs and budget, please contact our expert Insurance Adviser Shaun Nicol email:shaun@futureinsurance.co.nz  or  ph: 06 870 3012 or 0210 391 899 He can talk it through with you over the phone, via email, skype or meet with you in person to help you decide whats best for you and your family.

 

We're always here to help you make the best decisions based on your individual needs, current situation, and long-term goals. Don’t have an adviser? Call : 06 870 3012 or Click HERE to Talk it through with an expert

 

Shaun Nicol is a New Zealand Registered Financial Services Provider: FSP272065

Share on Facebook
Share on Twitter
Please reload

Featured Posts

We are about the Vitality of New Zealanders Life, Health and Wellbeing.

October 25, 2019

1/6
Please reload

Recent Posts

October 21, 2019

July 6, 2017

Please reload

Archive
Please reload

Follow Us
  • Facebook Basic Square

© 2015 Future Insurance Services Limited. All rights reserved.

Made for New Zealanders

personal insurance
 

Life Insurance
Family Protection Insurance
Trauma/Critical Illness Insurance
Total permanent disablement
Cancer Cover
Mortgage and Living Cover
Retirement Protection
Income Protection
Children's and Maternity Benefit
Redundancy Cover
House and Car Insurance
Trauma/Critical Illness Insurance
Total permanent disablement

business insurance
 

Start-Up Income Protection
ACC Levy Reduction
Business Disability
Rural Continuity
Farmers Protection
Business Mentors
Employee Insurance
health insurance
Hospital and Surgery
Specialists and Tests
Dental and Optical
Private Health
Physio Treatment
 

© 2019 FUTURE INSURANCE NZ LIMITED.® All rights reserved.