Playing Life Insurance charades is something we have all done at some stage of our lives! 

 

When it comes to Life Insurance, the main scenario presented to clients is the “What If” scenario. It’s a virtual guessing game to assess what financial value we place on our lives. 

The primary goal of any life policy is to ensure that our loved ones are taken care of in the event of our sudden demise. When it comes to having this discussion, the one elephant in the room is the simple fact that we will all die one day. The other bigger more pressing charades’ clue is guessing when we will die. 

The only way to ease the burden of the loss of life is to ensure that our family will not need to negate a negative financial impact along with their grieving process. In the event that we live a long, healthy life and only pass well into our senior years, then what we essentially leave behind is the opportunity for our adult children to have a financial boost. It could in effect be the jump start of a significant family legacy!  

 

In essence, Life Insurance forms part of our family inheritance and therefore needs to be given the respect and in-depth financial planning it deserves.  

 

The following scenarios need to be considered when planning for a Life Insurance: 

 

  • What life stage are you currently at; there are four main life stages that financial advisers take into consideration when they do a financial calculation for any client. 
  • What amount of life cover will be enough based on your current situation. 
  • How much can you comfortably afford to pay for your life insurance contribution.  

These are the three main considerations of any life insurance plan.  

When you look at these three main questions for life planning, you will notice that they are extremely liquid and will change and shift with age. Therefore, it stands to reason that Life Insurance Planning is an ongoing part of any financial plan and should be reassessed annually. 

Besides our annual assessment of our Life Insurance value; we need to ensure that we inform our financial adviser of any significant life changes such as: 

  • Getting married or divorced (yes, the BIG D significantly impacts our Life Insurance Cover) 

 

AND the most often overlooked scenario  

  • Immigrating to a different country 

 

As we grow and evolve so does our desire to travel, live and work in a foreign country and this is where many of us forget that we need to adjust our life cover. With immigration being at an all-time high, we have found that many clients have not considered how this life changing decision affects two of their primary insurances (#investments):  

 

  1. Retirement or pension fund, and
  2. Life Insurance 

 

When you immigrate, you need to assess whether or not your current Pension Fund and Life Insurance will pay out if you live outside of your current country for a prolonged period of time. These are those small illegible, T&C’s that can come back to throw you an impossible charade’s clue! 

 

 IIMG has the perfect investment solutions, with our specialized Expat Life Cover and Expat Financial Experts. We understand that your Life Insurance needs to play its part and match your passport travels with unbridled success to ensure that the world, whilst you are still in it, is indeed your oyster! 

 

Remember….. 

 

Every accomplishment starts with a decision to try” – IIMG 

Author: Angelina Angileri @IIMG Marketing