Income Replacement Planning
- Post by Super User
- In Great Eastern Life Assurance
- On 28 September 2012
- Hits: 2881
OFTEN CALLED THE insurance everyone should have but no one does. People are happy to insure their car, home, holiday and life, but do nothing to protect the thing that funds them all – THEIR EARNING POWER.
WHAT HAPPEN IF you fall ill or have an accident and can’t work especially to those who are the Bread Winner of the Family? When your income stops, your lifestyle drops! Without the safety net, when we fall, we’ll fall flat. SO, GIVE YOU & YOUR FAMILIES A SECOND CHANCE …… TURNS YOUR PROMISES INTO GUARANTEES.
Whether you have just begun work, started a young family or a new business, it is important that you and your loved ones are adequately protected against life's uncertainties and risks.
Nobody can predict what tomorrow brings. But instead of leaving your loved ones’ futures to chance, you can take proactive steps to ensure their financial security with us. In an uncertain world, it’s a great way to show them you care, while ensuring your own peace of mind.
Should any unexpected event happen, and you are unable to provide protection for your loved ones, it will help to take care of their needs when they require financial assistance most.
The Commandments of Successful Income Replacement Planning:-
START AN EMERGENCY FUND
An emergency fund is one of the fundamental building blocks in personal financial planning. Having money set aside for emergencies provides a little financial cushioning if something unfortunate does occur.
The general rule of thumb for emergency funds is an amount equivalent to six months’ living expenses to be used only for the unexpected.
INSURE YOURSELF ADEQUATELY
In many other countries, the number one reason for personal bankruptcy is medical bills.
When an individual suffers from a severe illness, besides large medical bills, it also causes a legion of other issues such as unemployment that can easily cripple one’s finances. Therefore, it’s very important to have comprehensive insurance coverage to adequately protect yourself and your family members against hefty hospital bills due to perils like critical illness or a disability. The concept of insurance is to pass on risk that has a low chance of happening, but should it occur, can deal you a big blow.
A well-planned insurance portfolio is a good way you can avoid becoming one of those sad finance statistics. Thereby, we strongly encourage you to talk to our advisors who can develop a well-planned insurance instead of selling an insurance product to you. Well-planned insurance should take into consideration from 4 areas:
Why – Why do you need such coverage?- How – How much is the sum assured needed? What methodology should be used to work out the figure?
- What – What type of plan (or combination) serve the best for your current & future needs?
- How to utilize – Who is your beneficiaries?
- Can they manage the large amount of insurance proceed?
- What happens when your nomination failed?
- What happens when your nominee is incapable to handle the money？
