The best investment plan can fall over without a solid foundation. That’s why it’s important to balance wealth creation plans with wealth protection strategies.
Many would remember the first job and pay they had. You looked at the money and wanted to buy something. Sometimes that ‘something’ meant you had to save money.
For many, this was their first real introduction into managing finances. When they finally got the ‘real’ job and were able to properly save, wealth creation was underway.
The initial phase of someone starting out in the workforce may be about putting together savings and holding onto more cash than before. Superannuation payments may have already started and with it, wealth creation.
As someone’s life changes due to marriage, starting a family, and other events, so do wealth creation plans. This may mean beginning to, or increasing, payments to regular investments or looking to purchase a first home. This may eventually lead to expanding a portfolio with managed funds or direct shares investment. Whatever the next plan, early investment into wealth helps.
At each step of your wealth creation, you could find yourself vulnerable to the unexpected.
Even the best investment needs a solid foundation
Part of a solid foundation includes:
- Asset Protection: usually in the form of general insurance such as home and contents and car insurance. That way should your house catch fire, or you’ve found yourself in a car accident, you’re protected without having to rely on savings.
- Estate Planning: creating Wills, outlining who the Power of Attorney is, and who can give advanced healthcare directives. This helps protect your finances and your family.
- Life insurance: covering Life, Total and Permanent Disablement, Crisis (Trauma), and Income Protection (IP).
By having this foundation in place, clients are able to:
- Minimise reliance on savings due to unforeseen circumstances like property damage
- Provide funds to pay off debt and support medical or financial interventions with life insurance
- Support family if health is impacted, or in case of terminal illness or death
- Ensure previous wealth creation strategies remain intact, future-proofing investments
The above are just a handful of reasons clients should consider solidifying their wealth creation strategy with a solid foundation.
If you would like to discuss the various life insurance offers AIA Australia can provide, please speak to your financial adviser to find out more information.
