Protect Your Loved Ones

 

Life insurance

Few of us expect to die prematurely – that happens to other people? Well ….

The fact is the chance of dying young is far less likely than suffering from a critical illness (refer back to trauma insurance) or a becoming disabled (refer to total and permanent disablement) for a period of time. The impact of premature death however is huge on the people you love and provide for.

You need to consider how your family would manage in the event of your death? Would they be able to live the lifestyle they enjoy now?

Some commonly asked questions

How much life insurance do I need to have in place?

The types of issues you need to consider are:

  • Your levels of debt
  • The age of your children – your educational requirements for your children
  • Relative earning capacity between you and your spouse
  • Some money to help your spouse and family time to adjust to life without you… this is different for all of us.

Who gets the money if I die?

You need to think about this and the ownership of the policy will determine who gets the money. If you have children from a previous relationship then you may want to own the policy on your own life and will then need to have an up to date will to reflect this. If the policy is to allow your spouse to clear the mortgage and raise your family then you may consider jointly owning the policy. We can help you to the get the ownership structure right.

Will the premiums go up?

This depends on the type of policy you put in place.

Rate for age is a structure of insurance that is priced based on your age and as you get older, the premiums increase.

A level premium is more costly to set up but the premiums do not increase for the period of the policy which may be through to age 65 or 70.

Taylor Made can have a look at the two options to see what is best for you. It may be a combination of the 2 delivers you the best protection long term.

 

Wills and Enduring Powers of Attorneys

Taylor Made Insurance Solutions takes a holistic approach to your protection plan and as such we believe it is critical that you have your estate in order. Having an up to date will and Enduring Powers of Attorney are the cornerstone of a good estate plan. We are not experts in this field; however we are happy to refer you to someone to discuss these issues in detail. Below are some of the commonly asked questions that we field regarding estate planning.

Why do I need to have a will?

It is the only legal document which allows you to:

  • Provide instructions for the distribution of your assets after you die – who gets what.
  • Appoint an executor and trustee to carry out your instructions – who will act on your behalf when you are dead.
  • Appoint a guardian for your children.
  • Specify funeral arrangements.

What if I have few or no assets?

You should have a will regardless – you may want items of sentimental value left to specific people. Likewise, you may have plans about how you want your funeral conducted, and preference for burial or cremation.

What is the role of an executor?

It’s important to choose the right executor because they will take responsibility for protecting and managing your assets, and ensuring your wishes are carried out. They will also be tasked with verifying and paying outstanding bills, liaising with family and beneficiaries sympathetically and impartially, and overcoming any legal difficulties.

When should I review my will?

Your will should be reviewed every three to five years, but especially when there are major changes in circumstances. These could include having children or grandchildren, the death of a loved one, the start or end of a relationship, acquisition or disposal of assets, or establishing a family trust.

What is an enduring power of attorney (EPA) and why is it so important?

It is a legal document appointing an attorney (an individual or organisation) to act on your behalf.

There are two types – one to cover the ongoing management of your property or assets, and one relating to your personal care and welfare.

Why would I need one – I already have a will in place?

An EPA only operates while you are alive, (a will is actioned upon your death) and will provide for unforeseen events, such as an accident, illness or an unplanned trip away that can cause problems for you and your family.

How long is it legally binding for?

You can specify when the EPA takes effect and under what circumstances, and you can cancel or change it whenever you wish. It can be set up at any time – a good time is when you complete or review your will.