Why buy life insurance?
Life insurance is one of the foundations of a successful financial plan because it offers protection – for your family, your business, your assets and everything that you have worked for all your life.
Protecting your family
Life insurance protects your family in a variety of ways:
- Loss of income — providing for your family by replacing your income.
- Capital provision — covering any emergency and unforeseen expenses.
- Education — ensuring that your children’s education is funded.
- Taxes — covering any taxes, such as capital gains tax, which might be triggered if you die.
- Asset protection — ensuring that your family doesn’t have to sell any assets.
Protecting your business
Life insurance can protect your business:
- Bank guarantee — funds to cover a business loan guaranteed by a director or shareholder.
- Share purchase — funds to purchase the shares if one of the company’s shareholders dies.
As a business owner, you should also consider key person insurance, which will minimise the financial loss suffered if a key person dies (e.g. loss of revenue or the cost of finding a replacement).
For advice on your particular circumstances, contact us now!
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