Risk and Estate Planning

Risk and Estate Planning

Risk and estate planning are crucial steps in providing financial protection for your loved ones after you die. Many people recognize the benefits of having life insurance, but often overlook the possibility that they might die prematurely. The lump sum payable on death may pale into insignificance if it is expected to provide financial support for many years to come.


Another important factor that individuals often overlook, because they have neglected to do risk and estate planning, is the effect that taxation will have on the estate they leave. Taxes can put a significant financial burden on beneficiaries of estates, sometimes making it impossible for the beneficiary to derive any benefit. Experts can help you make a will that will be tax effective.

Measuring risk

One of the primary reasons for carrying out risk and estate planning is to put a reasonably accurate financial valuation on the risks that an individual faces. We have already referred to the need to consider what the financial consequences of an early death might be. There are also other risks.

People can be struck down with illnesses, or be involved in accidents that leave them needing lifelong care. In the most serious cases, that may necessitate 24-hour care. It would take substantial sums of money to provide that level of care, so it is best to be insured for such eventualities.

Loss of income

Another common factor that is brought to the fore in risk and estate planning is how to protect against loss of income. In the modern world, no job can really be deemed 100% secure. Even where an employee has an impeccable performance record, he or she could be out of work if the employer decides to move the operation elsewhere. If this happens to someone with a mortgage, the loss of work could lead to the loss of the family home.

Thorough risk and estate planning consultations with experts will examine other aspects of life that an individual may overlook in self-assessment. For example, if a child becomes permanently disabled, one of the parents may need to assume the role of full-time career.

Risk and estate planning can ensure that you are adequately protected against unexpected financial loss, critical illness and other disasters, while also ensuring you are not paying too much in premiums by having cover your needs. To make sure you are properly covered, you should talk to an expert in risk and estate planning.

About the Author

Charl Oosthuizen
Independent Financial Advisor / Onafhanklike Finasiële Adviseur Ultrafin Finansiële Oplossings (Edms) Bpk / Financial Solutions (Pty) Ltd FSP 35757 Cell: 083 377 1441 | Fax: 086 617 8137 | Tel: 086 111 4602 Besturende Direkteur. Charl is sedert 1990 betrokke by versekring. Verantwoordelik vir oorhoofse bestuur van maatskappy, met spesifieke fokus op die Kort Termyn Afdeling as ‘n boer in murg en been lê die landbou vir Charl baie na aan die hart. Dus vorm Agri Versekring en gepaardgaande NIS produkte ‘n belangrike deel van Ultrafin se Potefeulje.

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