Unless you're an expert in the field, financial planning can be a complex area, with many policies available on the market. Here, Carbon's team of financial planners have answered some of the most common questions they're asked during client meetings. If you have a question that we haven't answered below, please contact us with your query. We'll be more than happy to help.
What’s the difference between step premiums vs level premiums?
Step premiums increase in cost as the years go by. Whilst this may seem attractive upfront, it’s important to consider what your insurance premiums would be in years to come.
Level premiums do not change to reflect your age, although they are generally more expensive in the initial years. The cost may increase over time due to inflation, however over the long term, level premiums may be a more effective choice.
Why do I need life insurance?
Nobody is exempt from life’s unforeseen events. No matter what your age, health or lifestyle, the unexpected can happen to anybody. Life insurance can give you and your peace of mind that you’re covered in the event of serious injury or death.
How much is life insurance?
The cost of life or personal insurance varies depending on your personal circumstances and levels of cover required. It's best to speak with a financial planner who will assess your situation and recommend a policy that best fits with your needs and matches your personal goals.
What are the benefits of working with a financial planner?
We're all on our unique journey in life and our financial road is no different. Often, decisions we make now affect our financial future, without us really being aware of the consequences. A financial planner can provide structure and guidance surrounding your financial decisions, helping you to work towards a clearer, more secure, financial future.
How often should I speak with my financial planner?
As a minimum, your financial planner should be contacting you on an annual basis. If your situation changes throughout the year, for example; your income changes, you are considering purchasing a new house, or you are looking at investment opportunities, you should speak to your financial planner before you make these decisions. Your financial planner will help you understand what these changes may mean for your financial future.
How should my life insurance policies be structured?
Considering the way your policies are structured is important, as different structures may have different tax implications. Policies can be structured in a way to achieve certain tax outcomes in the event of a claim. Your financial planner will talk you through this during the advice process.