In this series of articles on How to Protect the Entire Family, we consider what you can do in three key areas – insurance, super, aged care – to help build and protect the wealth of your family across generations.
Preparing a Will and an Enduring Power of Attorney are standard estate planning considerations for the end of life. However, it is just as important to be financially prepared during life, so that the wealth of the entire family can survive any adversity that may affect a member of the family.
#1 Consider insuring all family members that can be insured
In insurance circles there is a common saying: “… insure what you can’t afford to lose”.
While losing the family home or a luxury motor vehicle would be expensive and inconvenient, losing your life, your health or your ability to earn an income would be far more serious. These matters don’t just affect the individual concerned, but have wide-ranging financial impacts on the extended family.
Take for example, the scenario of a healthy young man who suffers a sudden and serious brain injury. His parents are grateful he has survived, but without personal insurance, the reality of 24/7 care and the high costs of ongoing medical attention may soon deplete both his parents’ savings and his grandparents’ retirement funds.
The confronting and sobering reality is that we face risks to our lives, health and income at every stage, and if you fail to consider personal risk insurance, the day-to-day livelihoods and long-term wealth of your whole family can be placed in jeopardy.
For parents, seek advice about appropriate insurances that can pay a benefit that will financially sustain your adult children in the event of an accident or serious illness, rather than risk draining your savings and retirement funds.
Talk to your adult children about the importance of insuring themselves or discuss a plan where you can assist them to implement insurance cover.
For further information and guidance about insurance, please contact us and we’ll help you to determine an appropriate financial protection strategy for your whole family.
When financial planning is considered an intergenerational family obligation that spans all generations – young to old – then the whole family can not only gain wealth, but protect it from unforeseen circumstances. In our next article we’ll consider the role superannuation plays in protecting the wealth of your family.
To find out more about insurance and other strategies that aim to grow and protect the wealth of your extended family, please contact Brett, Ross, Steve or James on 3007 2007 or bcribb@stratusfinancialgroup.com.au, rmunro@stratusfinancialgroup.com.au, snicholas@stratusfinancialgroup.com.au or jmarshall@stratusfinancialgroup.com.au
How to Protect the Entire Family
#1 Insurance | #2 Superannuation | #3 Aged Care
At Stratus Financial Group, we help families, professionals, executives, business owners and retirees manage their complex financial affairs and coordinate their professional advisers.
Stratus Financial Group and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Stratus Financial Group strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
Taxation outcomes are illustrative only. Always confirm your tax position with a registered tax agent.
