Estate protection, don't increase the risks of retrenchment
19.12.2007
A survey released by the Australian Bureau of Statistics back in August 2002 showed that 77% of people retrenched in the previous three years were given less than five weeks notice of retrenchment, and 25% were given less than one day. Many people who receive a substantial retrenchment payout recognise the value of professional financial advice. Whether to put a bona fide redundancy payment into superannuation, what to do with your superannuation, and more generally, how to invest your redundancy sum, are decisions that need to be taken fairly quickly.
Just as important, but often overlooked, is the importance of life insurance at this time. Many company superannuation schemes include a life insurance component that provides a lump sum payment (in addition to the accumulated amount in the fund) to dependants in the event of the death of a worker.
On leaving employment, this cover could lapse. In some cases, the life insurance cover may be carried on with the same insurer, usually without the need to undertake any further medical assessment. The death or disability of a spouse or parent is traumatic whatever the circumstances. But the economic impact can be reduced if life insurance is in place.
This article gives only a brief insight into how quickly you can protect your wealth. You should seek advice on how to stay on track to meet your specific financial and lifestyle goals.
Source: Professional Investment Services