Assurance (ITA) and Futura policies:
The adviser recommends option 4, a combination of an ITA and a Futura. The client was pleasantly surprised that the cost of the premium came to approximately the same amount as the ITA-only option.
Not only did it match what they could afford, it also gave them access to a number of benefits, while providing holistic and flexible protection cover over their lifetime.
Should anything happen to Richard tomorrow, while his children are still dependents, the ITA would provide a life cover lump sum payment of $500,000, which his wife could invest in a savings plan for her own retirement.
Futura would provide a lump sum of $200,000, which could be invested for the children’s higher education costs. The family income benefit pays out an annual income of $90,000 in order for the family’s day-to-day expenses to be covered over the next 20 years.
Richard also selected the waiver of premium benefit, so that if he was unable to work due to illness or accident, premiums for his policy would continue to be paid by Zurich, and his cover remain active.
The hospitalisation rider benefit would pay out $1,500 per week if Richard was hospitalised for more than three consecutive days. For an inexpensive addition of $30 this cover is a good value addition. Futura also has a potential cash-in value.
