Today, I want to talk to you about why Insurance is such an integral part of building a farm business that lasts for generations to come.
I got into financial planning thinking it was about the latest stock tip, to be honest. But as I started working as an Adviser, most of the work I was doing was around Life Insurance and providing that sense of security for people.
I learned a great deal along the way by doing this. Life is uncertain, but insurance can help protect your business, your lives, and your family, during times of turmoil.
Insurance is one of those topics that no farmer really wants to talk about.
It can be uncomfortable, it can seem unnecessary, and there’s no doubting that the first thing we think about at the mention of insurance, is our hard-earned dollars leaving our bank account.
It’s often a difficult discussion to have because we’re talking about death and, obviously, that’s going to happen to us all at some stage. Having been a financial planner for some time now, I see the implications of that unlikely event happening, and what it does to the whole family.
We’re not just talking about death here, either. Total and Permanent Disability, Trauma, and Income Protection Insurance can protect you, your family, and your business in the event of disability, injury, illness.
One of the most foundational things we need to consider in farming is the risk of the key person involved in the business.
This really comes back to insuring that person to provide a degree of certainty to the family, the farm, and the business, in the unlikely event that something should happen.
We insure against the level of debt you may have, as well as taking into consideration your goals as a family. For example, if you’ve got children who are still at school and you want to ensure they can still do things off-farm once they graduate, taking out insurance can help reduce the pressure in the unlikely event of something happening.
There are things that can be done to minimise the costs involved in life insurance.
In fact, as part of your strategy, we can look at self-insuring, using products, or building up assets.
It’s not just about paying a premium for life insurance.
No one really likes to pay the premium. I certainly don’t.
But you take out Insurance when you don’t need it, because when you do need it, you can’t get it.
Over the last 10 years of working as a financial planner, I’ve had several claims.
Recently, we helped a client who was diagnosed with cancer receive a lump sum payment of $250,000, as well as an ongoing income payment of $10,000 per month.
Had this client not taken a step back from their day-to-day life to put a solid plan in place, the financial impact of this illness would have been devastating.
The effect that having that lump sum of insurance money come in has on the family members, and not just the person who has made the claim, is unparalleled.
By removing the financial pressure that may usually come with accident, injury, or illness, you are able to focus on your recovery, heal, and move on.
We need to talk about it because it’s important to ensure that you your family and your business are protected so it can be here for the long haul.
It’s important that we have these discussions and it’s important to review your life insurance on a regular basis.
To discuss your insurance needs, book an appointment with me.