Is your house in order?

With current market volatility it can be easy to only think about the risk of the sharemarkets, it is also important to remember the other type of risk for our families – the risk of illness, accident and death.

Particularly if you have debts and/or dependents it is vital to consider your overall family position, especially for blended families, grandparents helping out, smaller families and many other challenges.

The accidental deaths of a young couple visiting Melbourne last year for a footy match, leaving their children in difficult circumstances, is a timely reminder to ensure your extended family has their “house in order”:-

• Are the debts of important family members covered by insurance – or will they be forced to sell a house at a difficult time?
• Is the family covered for ill-health as well as for death – many people only have death cover, but living with a disability or disease is more costly in many cases.
• Does your family have a history of any particular health conditions you would like to be covered for?
• Do you want your family to have the same, better or lesser lifestyle if the unexpected happens?
• Would you want to be able to afford whatever cutting edge medical options are available – regardless of whether Medicare or your Health Insurer covers them?
• As a grandparent, will you be called upon to help financially or physically with the grandchildren should your children pass away or are diagnosed with a significant condition – how will you afford to look after them? 
• Have you checked that the people who are important to you have enough assets and insurance so they can afford for you to quit work and look after them?
• Has the discussion occurred about who will look after the daily decision making versus the financial decision making should one parent, or both parents, pass away? Which family member will be called upon, and can they afford to take on the task?
• Does the documentation in your family’s lives back up your wishes?
• Are you confident that all of the assets that belong to you and your family will end up with the right person at the right time?
• Do you want to avoid being the lender of last resort to others in your family?
• Could the greatest gift you could offer a child or grandchild be to insure they have enough finances in the event of difficulties by helping their parents cover themselves adequately?

As your financial planner we are best placed to help discuss what your family would like to see happen in the event of a range of untoward events, and then help facilitate fixing any gaps – through working with a solicitor to meet your needs, helping establish more insurance if you have financial gaps, documenting your wishes.

It is easy to put off looking at this side of your financial position, but without strong foundations your family’s plans are at risk. Get in touch with our office on Ph: (03) 9349 1525 if you are concerned there may be gaps in your position.

Please note that any advice contained in this alert is to be regarded as general investment advice and factual of nature rather than personal advice. As it is not possible to take into account each client's individual circumstances, before acting on the recommendations contain in this report clients must determine the appropriateness of a particular recommendation in the light of their investment objectives and financial situation.