Prepared For Life

Being prepared for life looks different across all phases of life

We understand what people like you typically think about when making their plans to protect and provide. Life always feels better when you have a backup plan.

Why do people use risk insurance?

Life is unpredictable.

Its not unusual for life and business to be interrupted by unexpected events. Most are manageable annoyances, but other have the potential to derail your plans and the more serious ones, the potential to dissolve your hope for a better future. Knowing you have a backup plan to return you to normal, just in case, makes many of life's problems more bearable.

Nobody does their best work in an unexpected crisis and we all need coping skills and backup plans well before we face a potential catastrophe.

When it comes to life's biggest risks with the greatest potential to set you back in life and earnings, risk insurance is there to help you return to normal.

The big idea behind planning for the unexpected

Risk Planning is designed to help return you to a position where you can continue life and business when you recover after an unexpected serious sickness or illness, or to compensate your estate for lost income earning value, should you unexpectedly pass away.  This is so your family and loved ones don't miss out on the lifetime value you would either earn or create, over the course of a normal full working life.

Our aim is to protect you against the statistical risks of life and make sure you and your family (be they logical or biological) are financially compensated if one of these statistical risks were to occur to you.

This way, your plans for your future continue regardless.

What is personal insurance?

There are many types of insurance, but personal insurance (also known as risk insurance) is a contract that provides a binding guarantee that compensation will be paid in case of an injury, illness or death.

The big difference with personal insurance products is they are guaranteed to be renewable each year (as long as you continue to pay the premiums) and renewed automatically – regardless of any future changes in your health or type of occupation.

To fully appreciate the range of life insurance capabilities, it’s important to learn about what makes Life insurances very different to general insurance, (like car or home & contents insurance policies).

• The personal insurance products are called life 'insurances' (that's why there is an additional 's) and are considered the gold standard of insurance policies because they're non-cancelable by the insurance company.
• Life insurance is a great choice when your protection needs are expected to be high for a set period of time, then later drop back down; such as when your family is just starting out and growing, you're carrying a large mortgage debt, when you have a non-working partner, frail aged parents or a special needs sibling that might financially dependant upon you later in life.

This level of certainty is highly valued (and probably why getting such a type of policy can take a little more time and involve a lot of questions). But once it's in force, you have a powerful piece in your backup plan.

Life is risky

Life is inherently risky and that’s normal – not having a backup plan for life – that’s not.

• Playing sports, doing home renovations, driving a car – even crossing the road – it all involves a level of risk and that’s where we use our good sense and judgment to help manage those dangers. 
• That’s why we teach our children to make better decisions and not to run with scissors, to swim between the flags at a beach and to cross a road at a pedestrian crossing when walking to school.

Business Life is risky too

Regardless of the type of small business you run, the one common thread connecting them all is business runs on its people – so the statistical people-based-risks become amplified when you add a small business structure to an individual, and their family structure.

• The more business Partners you have (or people in your supply chain) the more you increase your exposure to the statistical Numbers of Life that either a business partner or supply chain provider will unexpectedly become sick or injured and unable to work, disabled or even unexpectedly pass away.

While it may sound counter-intuitive, risks are actually magnified within any small business environment that runs on people.

Simply said; business owners need to protect themselves and their families, from their businesses.

Protecting and Providing - it's the very essence of being human

The most important things in life, actually aren't things – they’re people. That's why we have Life insurances.

When do you need insurance?

Since no one’s circumstances are the same, their insurance protection plan shouldn’t be either.

Generally speaking, insurance is an important strategy to use when someone depends on you financially, and if you have large long-term debt obligations like rent, a mortgage, or a business loan, or when you're part of someone's support network or backup plan.

Protecting against the 4 Statical Risks of Life we all face

Life insurances (yep there is an extra 's' in insurances for a reason) are actually a set of four (4) types of policies each designed to help cover one particular known major statistical risk, we all face.

The reason we say these 4 risks are faced by everyone is that they're statical realities. This means, they aren't personal – they're statical – and therefore cannot be avoided, just managed.

• At Sapience Financial we call these major life risks The Numbers of Life.
• Small Business owners face an additional layer of these statical risks, which we call The Numbers of Business.
• These additional unique business risks are also simple statistical realities small business people can't avoid, but we can prepare for them ahead of time - just in case.

While everyone feels more secure knowing when a Life insurance policy is in force, you may want to consider whether you could also benefit from protecting yourself from the other 3 Key risks of the Numbers of Life too, depending on where you are at this point in your life.

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INSURANCE KEY TAKEAWAYS

• The good news about insurance is if you need it, you probably have someone and something of value to protect – a partner, a family, a best friend, a home, and your ability to earn an income. You could say insurance is the price we all pay for prosperity.
• Life's biggest risks are statical not personal — so while we can't avoid them but we can prepare for them ahead of time, just in case.
• Different levels of risks grow out of particular types of jobs, a persons current state of health, and their pastimes.

WHO SHOULD CONSIDER IT?

• In general, in the early years, most people will have large financial commitments but a low level of salable assets to support them in case they get sick or injured or unexpectedly pass away.
• Having the right amount of Life insurance in place for you, your family (and your business), is not a goal in itself.
• Having sufficient Life insurance is all about protecting and providing so your family has a place to live, your children can complete their education and your partner can continue to live where they are most supported, in case you are no longer there to support them. Its also designed to help you be able to financially retire when you need to.
• How much insurance is enough for you really depends upon how much living you have to do, and that's where we can help you understand whats possible.

How we can help

Using personal insurance is a simple and necessary decision to transfer the responsibility of the bigger things in life to a Life insurance company, rather than having to be responsible for them yourself and risk burdening your family with crippling debts and a bleak future.

Call us for a confidential chat about your needs.

Related: Types of Lifes Risk we help manage