What is Life Insurance?

So there’s this term that keeps popping up over the radio, on television adverts and you’re not quite sure exactly what it entails – Life Insurance.

Life Insurance is on the buzz at the moment and insurance companies are promoting it left, right and center, but what does it mean? Is it something you should be looking at? Is it useful or valuable?

A couple of years back if you asked me about Life Insurance I would have started laughing, seriously. You insure your home and your car against theft and damage, what’s the point in insuring yourself? When you’re gone, you’re gone right? Wrong.

See I was just as naive as the average Joe Soap out there. What I didn’t realise was that if something were to happen to me I might be gone, but my debt surely wouldn’t disappear into thin air. How do you know that all of your personal debt has been taken care of so that your loved ones don’t have to suffer through your untimely death as well as facing losing everything they’ve ever owned? Now you’re starting to get it.

Life Insurance isn’t simply another product insurers try to rub off on you, but an invaluable tool to ensure that your unfinished business is taken care of the day you die sooner that expected.

Simply put… Most of us have loans, credit cards, bonds and vehicles that pretty much belong to the bank and you surely don’t want to put your spouse or children in a position where they inherit your debt before being able to start their own lives. It’s a safety net. A reassurer that everything will be taken care of – as the provider of a family, this is crucial.

Life Insurance isn’t just for personal affairs either, but can greatly impact matters of a business if the deceased was a key person in the business. Surely neither partner would want to suffer shutting down the business’s doors and suffer financially because of either’s unfortunate death.

Now you know not break out in a cold sweat when you hear the term Life Insurance. You can be rest assured that it is a security blanket that all heads of family need to look into. Make the right decision, plan ahead and plan smart.

 

Wills

Let’s talk about the dreaded topic of your last will and testament.

Most people fear even bringing up the topic as to not arise any negative energy coming from the thought and to avoid the topic of death.

The truth is, without a will, your loved ones will be left with not only lose ends but the possibility of financial stress.

Did you know that even at death you are taxed? Did you know that there are executors fees payable for settling the estate? Did you know that you should have an executor to settle your estate?

These are all common questions most people don’t ever think about and all have financial implications on your estate. At death, your estate could be taxed at 20% of your gross net worth and the executor may take up to 3.5% + VAT in fees of your gross estate.

Did you plan ahead to make sure that you cover these costs so that your loved ones don’t have to? Did you plan to settle all or liquidate your liabilities so that these fees can be settled and the bank doesn’t come knocking?

These are all questions you need to ask yourself concerning your will. It is much more than just writing who you want your “stuff” to go to when you pass.

What is your opinion regarding wills? Please leave your comment below and don’t hesitate to contact us  if you are in need of one.

Welcome

Welcome to the Smart Planner blog! Here we will discuss financial topics in terms that are easily understandable and relatable in order for you to take control of your finances, make smart financial decisions and live a debt free life.

Not everyone wants to make an appointment to see a Financial Advisor immediately. This could be very intimidating and you don’t want to make false promises of taking their advice when actually all you want is, well, advice.

Here you will have the opportunity to educate yourself, talk amongst others and empower yourself to take the next step when the time is right.

Please feel free to ask as many questions and open as many discussions as you want, it’s all about community on Smart Planner.

So be a Smart Planner, and start talking about what no one is talking about 😉

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