How To Choose The Right Wealth Protection Product

Why do you go to work everyday? If you’re the main breadwinner, maybe it’s because you want to be able to afford a decent quality of life for your family? Or perhaps you want to raise your children in a home with a garden, or want to be able to afford quality medical cover should your family need it? Then there’s the cost of children’s education that’s a priority for many people too. Beyond the here and now, many people also put some of their income away into retirement savings, so that they’re financially secure in their later years.

No matter why you work, it’s important to protect your income in case your earning capacity is affected. Things like falling ill, becoming disabled or passing away can happen at any time – and in these cases, you’d want your family to be financially protected. But which life assurance product should you choose? It all depends on the life stage you’re in. Here’s our round up of the different wealth protection products that suit you different life stages:

  • Your Early Twenties:

Compared to any other life stage, there may not be many demanding pressures on your cash when you’re this age. You probably don’t have kids you may still live with your parents, or perhaps you rent a small flat that’s perfect for your single lifestyle. But while your expenses may not be high, you may not have a high earning capacity yet – which means there won’t be much left over at the end of the month

Think about getting: Anticipated Endowment Plan

Why? Even though we don’t know where life is going to take us, we need to make provisions for the future. This product pays out 20% of the sum assured (the guaranteed payout amount) twice within the term of the policy. For instance, on a 10-year policy you would receive a 20% payout in year 3, and another 20% payout in year 6. The remaining 60% of the sum assured plus all accrued bonuses are paid out at maturity.

  • Your Late Twenties:

At this stage, you may be thinking about getting married or settling down with a life partner – which often goes hand-in-hand with expanding your family or buying your first property.

Think about getting: UsomiBora Education Policy

  • Whether you’re saving for primary secondary or tertiary education, our UsomiBora policy gives you the flexibility to put away whatever you can afford today in order to ensure future funding for your children’s education.
     
  • Your Thirties and Forties

The demand on your income is probably at its highest now: you may own a house and be paying off a mortgage, and chances are you have children who are at school, or even university. Unless your employer covers your children’s school fees – or you have very smart children on scholarships – a significant portion of your income will go towards educating them. If you’re employed in a corporate environment, your company probably has a retirement or pension plan that you’re contributing to on a monthly basis.

Think about getting: Endowment With Profits

  • This is a plan that combines life insurance with investment. If something happens to you, having this plan in place will make sure that your family is financially taken care and that any debts you have – such as your mortgage – will be paid off. In addition, the policy’s investment portion can be used towards covering your children’s education costs, or to contribute to your and your spouse’s retirement if you can no longer be employed and contribute to a company pension.
     
  • Over Fifty

If you’ve planned well, by the time you’re in your fifties you may be in the clear financially. Perhaps you’ve cleared your first mortgage and can rent out your property to provide an income. Your kids may also be out of school by now (and out of your house if you’re lucky!). You can now focus on adding more funds to your retirement kitty – in fact, this is the life stage at which you need to invest most heavily for a successful retirement. The more you can add onto your pension, the greater the annuity (i.e. your monthly payout after retirement) will be.

Think about getting: Personal Retirement Scheme (PRS)

  • The more advanced you are in age, and the higher the amount you have in your pension kitty, the better payout you’ll get when you retire via your monthly payouts.

No matter what life stage you’re in, life assurance can help make you more financially secure – both in terms of settling your financial commitments if you can no longer work, and ensuring your family’s financial wellbeing if you can no longer provide for them.

With ICEA LION as your financial partner, we’ll help you with a life assurance product that suits the stage of life you’re in. Want to get started? Contact your broker or contact us directly to set up your life assurance portfolio today.