Insurance as part of your financial plan
Your financial plan should include a strategy to minimise risks that could jeopardise both your present and future plans. It should also include tailored and cost effective insurances to protect your income, health and assets.
“If you can’t afford to lose it, then you need to protect it.”
Application and underwriting
When applying for insurance you will need to complete an application form providing both personal and medical information so that the underwriter can assess the application. Some applicants may also need to undergo a medical examination and / or blood tests or a report may be requested from their usual doctor to determine whether to accept or decline the cover.
Depending on your circumstances and health you may be asked to pay an additional premium known as a loading. This can apply if you have an unfavourable medical history or display higher risk factors for developing chronic illness such as being overweight or having high blood pressure. In some cases, the life insurance company may apply an exclusion to your policy. For example, a decision may be made to not cover you for high risk activities and sports or a pre-existing injury / illness. This means that if an event occurs that is excluded, the benefit under the policy will not be paid.
Many policies are guaranteed renewable. This means that as long as you pay the premium you will continue to receive cover regardless of any changes in your circumstances or health.
If you do not pay your premiums, your insurance will lapse. Some life companies may provide a short window of opportunity to pay your overdue premiums to maintain the cover if you have missed the due date. If your policy lapses and your health or circumstances have changed it may impact on your ability to get the same cover at the same premium.
It is important to understand the benefits included in your policy and any optional extras. Benefits included are at no extra cost however optional extras may increase your premium. Your financial adviser can discuss the features of the recommended policy with you.
Want more information on how your can protect your assets with the right type of insurance to suit you, your family and your business?
Instantly download the FREE Lantern Advisory Ebook "Strategic Insurance to Protect Your Wealth" by clicking the image below. We provide you with information on best practices and pitalls to avoid as not all insurance policies are created equally.
You are also welcome to contact Ian Walker or James Cavanough from Lantern Advisory on 07 3002 2690 for a free and confidential discussion regarding your personal situation.
Our promise to you - your contact details will remain confidential at all times. You will receive approximately one email per month with valuable information to improve your financial situation, however you can subscribe from this correspondence at any time.
PS. Sign up to receive the Lantern Advisory Blog - regular financial planning tips and updates.
