Wealth Protector

[mingling]

Hi All,

We went to attend a 'Financial Planning For Lifetime $uccess' seminar.
Follow by meeting up a Financial consultant who go through our portfolio and make a proposal to us.

From the proposal, one of the items required is Wealth Protector which is to protect our wealth if one of us kick the bucket.

most of us here, member of SS are property investors or have multiple properties (IP) or investors, greatly appreciate if you could share with me whether do you take up such protection ??

Favorable or unfavorable reply, What is your plan or protection especially you have kids and they are still young.

Greatly appreciate your sharing.

cheers,
Ming

 

[Xenia]

I take it this is some kind of insurance to protect your income?

The trouble with these things I have found is that they are made for the average mum and dad, hard working people with a couple of negatively geared properties!

For those of us who don't have an income and use positive gearing and or equity to pay off debt and who dont own the properties directly but are in trust structures. How do you protect that with insurance? We dont have an income, or super or anything else the "average" person would have. Just properties and businesses

 

[boods99]

...beware of organisations that use "$" instead of "S"...

Boods

 

[BayView]

You are talking about Life Insurance?

You do not need to go to a seminar, or talk with a "consultant" about this form of insurance; it's most likely a scam.

This type of insurance is easily obtainable everywhere; just do a google search on TERM LIFE INSURANCE for your area. There are plenty of Brokers who will help you.

http://www.google.com/search?hl=en&q=term+life+insurance&btnG=Google+Search

Only go for TERM Life Insurance, and if possible, cover the entire debts plus another couple of years' income.

 

[ffc1883_1996]

cover the entire debts plus another couple of years' income.

Interesting suggestion Marc.

With the amount of debt carried by many Somersoft members, you're proposing some pretty huge life insurance policies. I'd be interested in how much others have taken out.

My wife would receive $500k if I go. That's enough to clear nearly half of our debt and boost the equity up to well over $1 million. Hopefully on balance I'm worth more to her alive than dead!

 

[steveadl]

With the amount of debt carried by many Somersoft members, you're proposing some pretty huge life insurance policies. I'd be interested in how much others have taken out.

My wife would receive $500k if I go. That's enough to clear nearly half of our debt and boost the equity up to well over $1 million. Hopefully on balance I'm worth more to her alive than dead!

My policy is enough to pay out all my debt so as to leave the properties freehold for them to do as they please like live off the rents, or sell off at leisure instead of a quick forced sale.

That is as it stands currently. I don't think I'll necessarily be upping it with each new IP. Haven't thought that far ahead yet.

 

[Highlygeared]

My wife would receive $500k if I go. That's enough to clear nearly half of our debt and boost the equity up to well over $1 million. Hopefully on balance I'm worth more to her alive than dead!

thats funny, couldnt help laughing.

 

[BayView]

Interesting suggestion Marc.

With the amount of debt carried by many Somersoft members, you're proposing some pretty huge life insurance policies. I'd be interested in how much others have taken out.

My wife would receive $500k if I go. That's enough to clear nearly half of our debt and boost the equity up to well over $1 million. Hopefully on balance I'm worth more to her alive than dead!

You can set whatever figure you like, it's all down to premiums and what you can afford.

If I go, or if the wife goes, we want to leave the other and our son with no money worries.

 

[Nougati]

We have got 1 million each in life insurance, and also have trauma and income protection. I believe adequate insurance (not just on your properties) is the cornerstone of a wealth building strategy. Most importantly it also provides you peace of mind if something does go wrong.

Life insurance through super is usually dirt cheap, and you can also get basic salary continuance cover. I would consider that the absolute minimum.