A married couple in their 40’s (Barry and Linda*) running a very small business recently joined Kensington Partners as clients. Our on boarding process with new clients involves us producing a Life Map, a comprehensive review of the client’s goals and dreams, their income, wealth and risk management. Our assessment of Barry and Linda’s situation, in conjunction with our in-house Wealth Adviser, Gregg Watts of Shape Advisers identified a significant opportunity to improve their situation.
Barry and Linda were very open in admitting to taking a “set and forget” approach to their life insurances. They had signed up to their suite of insurances some time ago and then the business became an all consuming part of their life and they hadn’t stepped back to review their situation.
They acknowledged that protecting themselves and their young family was important and that their household cash flow was relatively tight. They were looking for a balanced level cover that provided the maximum value for them.
Prior to our review, Barry and Linda were paying $8,073 from their after-tax income for Life Insurance and Trauma Cover. The Life Insurance cover they had was excessive and they had no Total and Permanent Disability (TPD) or Income Protection Cover.
Gregg structured an insurance package for Barry and Linda which:
- Provided a sensible level of Life Insurance, TPD, Trauma and Income Protection coverage
- Funded some of the insurance premium payments through their Super Fund
- Reduced the after-tax cost of the new coverage to $2,175, a saving of 73%
If you’ve taken a set and forget approach to your insurances and would like an obligation free review, please contact Gregg on 9427 1777 or firstname.lastname@example.org
* not the client’s real names