There are a few common answers clients will often respond with when asked the following questions around building / protecting their wealth:
Q: What would happen if your house burnt down or someone broke into your home and stole your personal effects?
A: “We have home and contents insurance in place”
Q: What would happen if you damaged your car in an accident?
A: “We have comprehensive car insurance”
Q: What would happen if you didn’t walk away from the car accident and you were injured and unable to return to work?
A: Usually the client is unsure or no answer for the above…
In the event of an accident or illness that prevents you from working, the reality of financial pressure can be confronting. If your children have not had the “what if” conversation with their Financial Adviser about protecting their income in the event they become sick or injured and unable to work, perhaps it’s time they sat down with an Adviser to discuss.
We need to protect our home/contents and car with insurance. However if they have not protected their income and are unable to work, eventually there may be no income to pay the premiums of other insurances, let alone the repayments often associated with the financing of these assets! The potential result will be that non-essentials will have to be sold, followed by the car and eventually the family home.
If your adult children have not got their personal insurances in order and they were to become sick/injured temporarily or pass away, would you be in the position to cover your grandchildren’s expenses for the amount of time that they are dependent on you? Do your adult children live at home with you? If this is the case do they pay board and part of the bills? If their income stops, where would they get the money from to pay their share and/or cover their medical expenses?
If it sounds like you may be in this position, please take the time to contact us at Stonehouse so that we can organise an appointment for them to meet with one of our Advisers to get their (or your) ‘house’ in order!