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I believe the cornerstone for all great financial planning is the financial needs analysis or F and A. This lets us know what the client’s needs and wants are, and lets me find out about the client. The cornerstone of all great financial planning, I believe, is the Life Cover - which is broken up into three or four elements.

I always ask a client what kind of legacy they would like to leave behind for their family. The biggest concern for the family is if a person passes away, is to make sure we settle debt 1st. This way, the family can live a debt free lifestyle. They're already missing income from a main provider of the family, so once we settle debt, we want to make sure that they get a monthly income from the life cover to maintain their standard of living: so that, for example, they don't have to sell their house or lower their standard of living.

With Life Cover, We want to protect you and leave a legacy when you pass away. But I also want to ensure for my clients that when something happens to them while they are alive; like for example, they’re in an accident, they become disabled and unable to work, or suffer a major dreaded disease like a cancer or a heart attack or a stroke; we want to protect them financially on an ongoing basis to make sure that debt is settled and any extra medical expenses are settled. We also want to prevent them from having a financial lifestyle change.

So, the two types of benefits are: 1) lump sum. You get that paid out on a disability or dreaded disease - based on severity. Generally a lump sum would be maybe to settle debt or help with lifestyle change from a certain event. 2) Or we can prepare what we call income protection. This will pay you a monthly income for as long as you are unable to work. You want to make sure that if something happens, you are still at least getting a monthly income. Very, very important. You want to make sure you are getting a monthly income on an ongoing basis so that your lifestyle won't change for the rest of your life financially.

Laurence Tobin – 1.618 Rosebank

Watch the full video here: https://youtu.be/Txxc6RvySsM