Financial Security for Young Families

Ensuring your family’s financial security involves both immediate protections, like insurance and emergency funds, and long-term planning, like savings for education and estate planning.

Here’s a breakdown of the key areas you might consider:

1. General Insurance: Ensure you have adequate insurance coverage for health (hospital and extras), car, home and contents. Insurance helps to protect against financial loss due to unexpected events.
2. Life Insurance: In the event of your death, life insurance provides a lump sum payment to your family. This can go towards expenses such as debt repayment, funeral costs, income replacement for your spouse and children, and future educational expenses for your children.
3. Total and Permanent Disability (TPD) Insurance: If you become permanently disabled and are unable to continue working, TPD Insurance provides a lump sum payment. This can be used to cover costs including debt repayment, income replacement, medical expenses, children education expenses, and ongoing care needs.
4. Income Protection: Income protection provides a monthly benefit if you are unable to work due to illness (usually covers 65% – 75% of your current salary). Ensuring you have a continuous income during your recovery period.
5. Trauma Cover: Trauma cover pays a lump sum if you are diagnosed with a serious medical condition which is listed on your policy. Such as, heart attack, cancer, or stroke. There may already be cover in your superannuation, it’s important that this gets reviewed to ensure that it covers everything that is required.
6. Emergency Funds: It’s important to have liquid savings set aside for any emergencies that may arise. Either in cash savings, a separate savings account, or a line of credit that can be readily available.
7. Savings for Education: With young children, it is crucial to plan for their future education expenses. Either by setting up a separate savings plan or investment which is specifically for their education costs. There is also education savings plans that offer tax benefits available.
8. Estate Planning: You should consider updating your estate plan regularly, especially after major life events, such as the birth of another child, marriage, divorce, or significant changes in financial status.

Finally, reinforcing that all these elements should be regularly reviewed and updated as circumstances change will help ensure the financial safety net remains adequate and effective over time.

Book a complimentary initial consultation with our Financial Planner who can offer you professional, independent advice based on your unique set of circumstances.

Source: www.fiducian.com.au

Lindale Insurances Pty Ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a Franchisee of Fiducian Financial Services Pty Ltd, Level 4, 1 York Street, Sydney NSW 2000. AFSL 231103 ABN 46 094 765 134.

The information (including taxation) provided on this website is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.

Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of Fiducian. They cannot be reproduced in any form without the express written consent of the author.