Married, young family, own a home?

As your financial obligations grow during these busy years, your Financial Adviser can help you facilitate the discussion on how you would protect your lifestyle, your home and the financial future of your growing family.

Let’s look at a real world application of these principles by considering a relatively typical couple  Lau  &  Jenna. Let’s look at a real world application of these principles by considering a relatively typical couple  Lau  &  Jenna.

Assumptions: Husband (Lau- 39 ) Wife (Jenna -38) 2  kids (Ages  12 & 9.They have a mortgage of $200,000. Lau’s  income is $ 75,000. Assume Jenna  part time work whose income is  35,000 annually.   Cash in the bank $10, 000  Lau’s  Retirement savings (Kiwi saver) of $40,000 Gail’s Retirement savings of $15,000 (kiwi saver) let’s determine what cover they’d need in the event Lau died:

• Repay their Debt $200,000•Funeral $10,000
• Living Expenses $75,000 p.a. for 10 years (until the 4year old reaches18)Therefore capital needed of $750 ,000. (This assumes no inflation and no investment return on the capital)
• Less Cash $10,000
• Donation 5,000
• Less Leroy’s Retirement Savings of $40,000 Therefore: Debt ($200,000) +Funeral ($10,000) +Living +Donation 5,000, Expenses ($750,000) less existing Cash ($10,000) & Retirement Savings ($40,000)

Recommended Life Cover for Lau : $915,000

Note: inflation & investment returns excluded in this example. Generally you would assume that an investment return would be made on the capital from the insurance lump sum (meaning you would need less sum insured as it would grow). You would also assume that inflation would have a negative impact on the lump sum (meaning you would require more to allow allowing for the decline in the purchasing power of the lump sum over time).

REFLECTION
Consider your own circumstances for a moment and try to answer these questions:

“What would happen to your family if your income disappeared (or your spouse)”What resources do we already have?

The examples given are estimates. Financial advisers conducts a thorough financial analysis through Fact Find and recommends protection plan for clients approval

Nearing or Beyond Retirement

As you are nearing retirement or you would like to continue working beyond retirement, there would be various ways and means how you would make most of your time more meaningful. There is a need to review your insurance policy if you like changes in your cover. We can also help coordinate, Business specialist, Estate planning specialist beneficial to your plans and purposes.

Let’s look at a real world application of these principles by considering a nearly retiring  couple   Lee & Iya .Let’s look at a real world application of these principles by considering a nearly retiring  couple   Lee & Iya .
Assumptions: Husband (Lee- 63 ) Wife (Iya -62) 2  Children (Ages  40  & 35 all have work and family)  They have remaining  mortgage of $65,000. Lee’s  income is $ 150,00. Assume IYa is not working anymore.   Cash in the bank $20,000.  Lee’s   Retirement savings (Kiwi saver) of $120,000, Iya Retirement savings of $80,000 (kiwi saver) let’s determine what cover they’d need in the event of death:

• Repay their Debt $65,000
• Funeral $10,000
• Living Expenses $,300, 000 (x2 current salary)   for  2  years ( Retirement age )Therefore capital needed of $300 ,000. (This assumes no inflation and no investment return on the capital)
• Less Cash $10,000
• Donation 5,000 to Charity and faith community.
• Less Lee’s Retirement Savings of $120,000 Therefore: Debt ($65,000) +Funeral ($10,000) +Living, Expenses ($300,000) +Donation 5,000 less existing Cash ($20,000) & Retirement Savings ($120,000)

Recommended Life  Cover for Lee:$240,000

Note: inflation & investment returns excluded in this example. Generally you would assume that an investment return would be made on the capital from the insurance lump sum (meaning you would need less sum insured as it would grow). You would also assume that inflation would have a negative impact on the lump sum (meaning you would require more to allow allowing for the decline in the purchasing power of the lump sum over time).

REFLECTION

Consider your own circumstances for a moment and endeavour to answer these questions:
“What would happen to your family if your income disappeared (or your spouse)”What resources do we already have?

In the case of a retiree the Financial Adviser proposes a LEVEL kind of insurance to Age 80 so that premium and cover will not increase and it remains static. The change from Rate for age to Level should be done approximately by the age of 55. Assuming that insured has less financial liabilities.

Level Insurance can also be availed by young individual or family depending of their purpose and goals.

The examples given are estimates. Financial advisers conducts a thorough financial analysis through Fact Find and recommends protection plan for clients approval