What If Something Bad Happens? 5 Tips To Protecting Your Family - Pearl Financial

What If Something Bad Happens? 5 Tips To Protecting Your Family

By Shane | Insurance

Feb 10

Nobody wants to talk or think about anything bad happening. The reality is that you’ve got busy lives, focusing on the here and now. Have you ever thought about what would happen to your family if something happened to you? The fact is, by not thinking or talking about it should be the real worry for everyone. But concern for protecting your family doesn’t have to turn to worry if you follow these tips.

  1. Look for a financial adviser.

You may be thinking why would you need a financial adviser. A financial adviser helps you articulate your goals, put a plan in place to help you achieve your goals, and helps protect your family or partner in the event that you pass away leaving behind a large mortgage. As your life and financial needs changes such as planning for retirement or consolidating pension plans, your financial adviser will guide you and keep you up to date.

 

  1. Organize a will.

It is actually the easiest step but the most overlooked. If you don’t organise a will, you may possibly create a problem for you loved ones who would be left behind, and your assets would more likely be distributed according to the laws of the state or territory you live in. They may even go to family members you are estranged from. If you own joint assets or if there is any disagreement between you and your beneficiaries after you’ve left, much of your estate may dissolve in legal fees.

If you jointly own a business, you must see to it that a will is crucial. In fact, all partners should ensure that each of them has a will in order for the business to continue even if one partner dies. A will is also vital, particularly if you are the sole director and shareholder of a business. Without a will, your family may be tied up in legal disputes to take control of the business or, the public trustee may take control once no close family members were confirmed. Either way, it’s unfortunate that the business would be forced to close until the legal issues are resolved. Otherwise, if you have completed your will, keep it up to date. Reviewing it every year or two would ensure that there are no surprises after you’ve gone.

 

  1. Think about personal insurance.

Life, total permanent disability, income protection and trauma insurance helps to provide financial security for your family when something happens to you. It could pay out an existing mortgage on your home or take care of other debt. You can purchase death and disability insurance cover through your superannuation fund, and could sometimes be provided by default with a fee. Buying life insurance through your super fund has advantages and disadvantages, that’s when your financial adviser could help you with the best course of action depending on your circumstance.

 

  1. Consider home and contents insurance.

It’s quite often said that your home is one of the biggest investments you’ll ever purchase. Yet, many people take their homes for granted and spend more time and money making their investment look pretty than investing in its protection from unfortunate events. Protection can take on many forms and one of the most basic is insurance. Protecting yourself, your family and your home will also mean minimizing the risk of an unfortunate event. The benefit of protecting your home against these events is that your family is also safer; that itself should be reason enough.

 

  1. Check your super details.

Your super fund will decide who receives your death benefit, unless you let them know your preference. There are different approaches that- one is with a non-binding nomination, in which a guide is provided to the super fund trustee when distributing your benefits. While the other approach is a binding nomination, in which the trustee is legally required to pay to person or people you name.

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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