Wealth Protection involves life insurance

What would be the financial consequences if you are injured, become ill – or die?

Would your family or other ‘dependants’ (including business partners) remain financially secure?

How would you cope financially if you were no longer able to work either –

• • for an extended period of time; or
  • permanently (through accident, illness or injury)?

Business owners bear additional layers of wealth protection risk

The family consideration:

Your income is supporting your lifestyle and that of your family and/ or other dependants.  You may feel obligated to ensure that income flow is maintained, so their financial position is not put at risk.  Your income –

• whether from wages earned from an arms-length employer; or
• earnings from your own business,

provides, or subsidises, their lifestyle.  Financially protection from the cashflow consequences of accident, health and well-being events that could otherwise derail it, are available.

In this context, consider –

• home mortgages need to be paid;
• children’s education costs continue;
• business debts still need to be serviced;
• health costs arise and need to be met;
• food and clothing needs also persist –  and
• in the absence of an income stream,
  • will diminish your accumulated ‘nest egg’ unless you are adequately insured.

True, access to your superannuation account may be available if the consequential financial position meets regulatory definition.  The same effect, of eroding your accumulated wealth, and at a time when significant lifestyle goals may change, arise.

The business partnership consideration:

Family-owned businesses, whether a single- or multi-family businesses, can provide –

• for an orderly succession of ownership and management, so as to
• avoid situations where family connections not interested in, available for, or competent to participate in the business
• can be financially provided for – and
• not ‘forced’ into situations that could lead to business and family disharmony.

For business owners, insurance policies are an effective wealth protection mechanism, used in partnership agreement strategies to provide for funding and thereby helping to secure business continuity.  This is typically achieved through Buy-Sell agreement funding using appropriately owned, fully assessed amounts, of the right types of insurance.

Want to know more about life insurance providing wealth protection?

Continuum Financial Planners Pty Ltd can assess your risk exposure and recommend policies that best suit your needs. Our experienced advisers operate to the mantra –

• ‘we listen, we understand; and we have solutions’ … to meet your needs in this regard: and
• we deliver personalised, professional advice that you will understand.

We can also review your current policies to ensure they continue to provide an adequate level of cover.  Under-insurance can have similar consequences to not having insurance protection in place at all.  A review is particularly important if your financial situation or family circumstances change.  Circumstances that should lead to changes in the need for insurance protection, include –

• debts reduce,
• children arrive
• – and eventually move on,
• family structures change – and
• even windfall gains sometimes come into the mix) – and

a review of your insurance portfolio will reveal if they are –

• of the right type,
• in the right amount and
• held in the right names,

to provide the protection you anticipate.

Contact Continuum Financial Planners now

To arrange an appointment with one of our experienced financial advisers to discuss your needs –

• by phoning 07-3421 3456, or
• at your convenience, use the linked Book A Meeting facility.

(This article was first posted by us in February 2010.  It has occasionally been refreshed/ updated, most recently in February 2025.)