Category: Individual Insurance
Top reasons why you need retirement planning
Retirement planning is the financial support, in form of savings and other physical assets, for financial independence in your old age. It is aimed at giving you a relaxed lifestyle with enough money in your hands so that you can live the way you want without being a burden on anyone else. Retirement planning starts with planning your retirement goals such as where you want to live, how much you want to travel etc., and how you are going to fund them. It is a multistep process conducted over a period of time during your working days so that you can have a secure, comfortable, and fun life after your retirement.
Retiring at 60, cannot be taken for granted anymore. Advances in health care mean we are living longer lives and for long lives, we need more money. So, most people who don’t plan their retirement end up working well into their 60s and sometimes even into their 70s. Working for the fun of it is one thing but working out of compulsion, just because one didn’t plan sufficient finances takes a toll on one’s golden years. It is always a better idea to plan for your financial independence even if you have a supportive and caring family because you never know how people change and perhaps even if the right intention is there, family members may just not be able to support you financially in your old age if they have their own family commitments. Many people suffer a lot during their retirement when they are forced to live alone without proper financial support. This is why you need to be prepared for all kinds of situations and think seriously about your retirement goals.
Retirement planning is the process of identifying your retirement goals, expenses, savings, emergency situations, and your sources of income for a secure and independent life. Here’re some key reasons why you need to plan for retirement.
Medical emergency: Retirement planning means you are planning your life after the age of 60 that means different health problems may arise with rising age and you should be prepared for that. Medical expenses are the biggest financial support that someone needs in post-retirement life. With enough savings and a good medical insurance plan shall mean you will be well-taken care of during any emergency medical condition.
Your pension plan: Private sector employees usually don’t have any state-sponsored pension schemes like government sector employees and they should plan it by themselves. Pension is like your regular income post-retirement to pay for your day to day expenses. You can invest in different investment plans or buy a retirement plan that guarantees monthly pension after your retirement at a certain age. If you are on your own, a pension is like your social security during those days.
You are your own family: Long gone are those days when families live together and support each other. With a rapidly changing family culture, you need to plan for your monetary support and social security to ensure that you will have enough savings for staying separately. In today’s competitive lifestyle, children are also forced to achieve more in their life and sometimes even they have to relocate to another country for their jobs. You should also consider this scenario while planning for retirement at 60.
You can start your retirement planning at any stage of your professional life. The earlier you plan for this the smaller amounts you need to put away to secure your future. The later you start, the harder it gets. Now is a good time for you to start planning for your golden years. This is the best time to determine your retirement planning goals and investment strategies. You can contact New Age Insurance Brokers and one of our qualified financial advisors will help you with your retirement planning and financial strategies for a secure and financially independent post-retirement life.
Protect yourself with a Personal Accident Cover
Accidents, as the name suggests, are inherently unpredictable. They can happen anytime and anywhere – whether you are at home, at work, or even on vacation. A small slip in the house, accidental tripping on a staircase, injuring yourself while playing football, or a road accident can have long term implications for you and your family. As per the facts released by WHO, approximately 1.35 million people die each year as a result of road accidents. Far more are injured. These injuries can be temporary or permanent.
Accidents leading to disability, death, or long-term illness can make you and your family emotionally and financially weak. So, while one cannot predict an accident, one can definitely be prepared for the same. Personal accident cover can soften the financial impact of such an unfortunate event. Let’s see how.
What is Personal accident insurance/cover?
Personal accident insurance is a policy that offers financial compensation or reimburses the medical cost in case of total/partial disability or death caused by accidents. In case you meet with an accident and get disabled or lose your life, the policy will ensure financial stability for you and your family, respectively.
Major areas that are covered under Personal accident insurance are:
- Death after the accident- It’s an unfortunate but bitter truth. You might lose your life after a severe accident. In such a case, the nominee in your policy will get accidental death compensation. So, you should always add the name of the nominee while applying for the personal accident cover.
- Total disability- An injury or condition may result in total disability, preventing you from performing any work at all. It is a severely debilitating situation whereby you are not only losing your ability to work and thereby earn income but also requires major medical expenses and increases your cost of living expenses as many adjustments need to be made in the house to allow you to live comfortably. In such circumstances, a personal accident cover can not only cover medical expenses but also provide monthly payout to compensate for the loss of income and additional expenses.
- Partial Disability- Partial disability, while not that severe, can still result in one’s reduced ability to perform all physical functions. Reduced physical functions can impact one’s ability to earn and might also require some minor accommodations to be made to allow one to work and live at fuller capacities. As in total disability, personal accident policies can payout for both medical and non-medical expenses, related to the partial disability.
Depending on the kind of personal accident policy, in some cases, the insurance companies pay for the transportation expenses that were incurred by your family to reach the hospital. Also, the policy covers hospital costs, including ambulance costs, funeral expenses, and pays for your vehicle alteration.
What should you consider before taking the personal accident cover?
• Assess the coverage of the policy to ensure that you are extensively protected after the accident – both for medical expenses and loss of income and/or increased expenses.
• Track the record of claim settlement of the insurance company to know about its quality and reliability.
• Apply for the policy that offers coverage abroad so that you are secured even outside your home country.
• Learn about the claim procedure so that it’s quick and hassle-free at times of emergency.
Amid physical trauma and increasing medical expenses after an accident, a personal accident insurance policy provides peace of mind. We at New Age Insurance Brokers can work with you and your families to provide the right kind of cover.
What is Partnership Insurance? Do I need it?
Partnership insurance is a well-designed insurance plan for businesses that are run by two or more partners.
In the UAE, numerous businesses are set up as partnerships. However, rarely do the partners realize the implications of what would happen to the business and the family members if one of the partners gets severely ill or dies. Would the business suffer a loss either through reduced revenues or monies stuck in the market? Would the deceased partner’s shares get passed on to their next-of-kin who may not be interested in running the business at all or might not have business acumen and technical skills to support the business like the previous partner?
Fortunately, policies like partnership insurance allow for partners to be ready for this eventuality. This type of insurance also safeguards the business in the scenario where one of the partners survives the accident or illness but chooses to leave the company.
Is it necessary to buy partnership insurance?
Understandably, no one wants to think about tragic events while running a business with a partner. But, not planning for it properly might result in undesired outcomes after an unfortunate event in the future. Not being prepared for such events means your business can fall apart quickly once your partner gets out of the business due to any of the following reasons.
Death
In case of the death of one of the partners, a partnership insurance plan will give the business a cash payout. It will allow the remaining partners to buy the shares back from the family of the deceased partner to regain full control and business continuity. This is beneficial for the deceased partner’s family as well as they are able to liquidate their holdings in the business and live a dignified life in the absence of their family member.
In addition, this lumpsum payout enables the remaining partners to find a suitable replacement (partner or an employee) and bring him/her on board without worrying about hefty salaries as the business will have the luxury of cash sitting in the bank account.
The cash flow resulting from the death of a partner, into the business, also gives confidence to the vendors, clients, and other business partners that the business will be able to tide over difficult times and come out stronger on the other side.
Critical Illness
If one of the partners falls critically ill, then a cash payout is made to the company. This helps the business in many ways. Firstly, it enables to critically ill partner to get medical attention and be able to take the time off without a significant impact on his personal finances. In addition, if the partner needs to take a medical leave of absence or is working with the company at reduced capacity, it enables the business to hire the necessary people for the business operations to go on as smoothly as possible.
In short, a partnership insurance policy is a guarantee that your business would be least impacted by the death or illness of a partner and that the business can carry on its operations profitably.
At New Age Insurance Brokers LLC, you will find the most trusted insurance advisors who will help you to make sure that your business remains protected should any partner of your business get out of the equation. To know more about partnership insurance, feel free to contact us at info@newageib.com.
Why The Rich Need Life Insurance
High-value life insurance is a secure and unique insurance plan especially designed for high net worth individuals like yourself who are business partners, directors, and large business owners, having large illiquid assets such as large real estate investments, machinery, accounts receivables, etc. This type of life insurance plan provides massive amounts of coverage from USD 1 million up to USD 200 million. It provides the opportunity for you to develop a very large asset base and offers guaranteed minimum accumulation benefit protecting you from market fluctuations. In a nutshell, life Insurance for HNWIs/UHNWIs is recommended so that they / their families/businesses continue to run at the same level of comfort and guarantees that they are used to.
Why should high net worth individuals buy high value life insurance policy?
As an HNWI/UHNWI individual, your needs are unique and hence only bespoke solutions are appropriate for you. These high-value insurance plans can be designed to meet your individual needs. Some of the reasons why one should consider a high-value life insurance policy are as follows:
Business Continuity
High-value life insurance can help your business when insurance is taken on all the partners or keyman and the company pays for it. In the event of a claim, claim proceeds come to the business and can be used by the surviving partner to pay to the deceased partner’s successors towards buy out of his share in the business. In this way, there is no cash stress on the business to pay off the deceased partner’s family and continue running the business. In a sole proprietorship business, the family gets liquidity in the business and is not having to rush to sell the assets to pay running expenses or short-term/long-term liabilities. The cash payout helps the business to remain stable and gives time to the family to consolidate the business and carry on profitably.
Structuring Tax and Other Liabilities
It is vital for you to make sure that your estate has the liquidity to pay debts and estate taxes. In case the estate is expected to exceed the exemption amounts, planning for tax liabilities becomes important because paying off federal tax can be cumbersome and is typically due within the year of the estate holder’s death date. High-value life insurance can play a vital role in paying off estate taxes.
Legacy and Estate Planning
Estate planning is not only about estate tax avoidance/reduction, but it is also about taking care of family, dependents, and dealing with complications of transferring business, real estate, privacy protection, creditor protection, probate cost avoidance, and so on. A high-Value policy helps you fairly divide your assets amongst your successors. For example, if one of the children is not interested in joining the business, then life insurance proceeds can go to him/her and another child gets full control of the business. Legacy planning involves a lot more than estate planning. Rather than planning for “when I am dead”, it involves developing plans for things you value, the beliefs you have, the people you love, and passing all these to successive generations. A high-value life insurance can help you realize these plans in a much better way by providing the financial security you need. Apart from this, keyman protection, wealth preservation, and charitable giving are also other key objectives of buying jumbo life insurance. To conclude…
The very definition of rich implies that one is wealthy and has a great deal of money or assets. And that is typically the reason why a high net worth individual, like yourself, might undermine the importance and need for life insurance. You may assume that you already have enough wealth to protect your business and family, in case of your sudden demise or a slowdown of business due to a critical illness that you may suffer from. However, as experience has shown us and hopefully, we have been able to convince you, that is not always the case. A jumbo life insurance policy plays a very important role in estate planning as well as providing immediate liquidity to your family and/or business in case of your death or if you are diagnosed with a critical illness. Our wealth of experience in this domain will ensure that you, your assets, and aspirations are well protected and transferred onto future generations or executed as you wished it to be. To learn more about high-value life insurance, please contact us at info@newageib.com
5 common myths of travel insurance that you need to be aware of!!
What do you do when you are on a vacation and an unavoidable medical emergency happens? You will probably contact your relatives and friends for help or will visit the local medical authorities for treatment. How do you take care of the related expense? Your medical insurance does not cover you outside your country of residence. A very inexpensive travel insurance can help you deal with these and other unfortunate events that might happen while you are on a vacation.
It is this type of insurance that will help manage many uncertainties associated with travel. The insurance will cover the emergency medical costs in case of an accident, assist if your traveling document if lost, manage costs related to canceled and missed flights and many more. Overall, travel insurance will be a protective layer for your journey.
The benefits are several but there are some myths in the minds of the people that prevents them from using the same. Let’s discuss these myths and bust them.
Myth 1#
Medical insurance or other life insurance is enough
Medical insurance will look after all your medical issues only if it covers the countries you are traveling to. Typically, medical insurances are not sufficient. Not only that, what about other problems that you may face in the journey. Travel insurance will cover a lot more than medical issues.
Myth 2#
You have to take an individual policy for everyone in the family if traveling together
If you are traveling with your family, you can choose a family policy that covers all family members which includes family children below age 16. In addition, if you travel regularly with your family, you can choose an annual policy and use it whenever you plan your vacation. However, a ‘family’ policy can be invalid if family members are travelling independently or if the children are travelling with someone not named on the policy.
Myth 3#
Can buy insurance later
People wait for the last minute to take the policy or after they have travelled because they are afraid of the premium amount. The premium amounts don’t change whether you purchase in advance or last minute. Also, the difference in premium amounts before you have travelled and after you have started your journey is minor and not worth the risk. We highly recommend taking the policy at the time of booking your trip.
Myth 4#
Travel insurance is just for adventurous people
Some people love adventure and high-risk sports and activities during their travels. But it does not mean that they are the only ones should avail travel insurance. The terms and conditions are different for different travelers so even if you are not into adventure sports, you can apply for travel insurance. Such a policy will cover you against various travel risks such as lost or stollen luggage, cancellation cover (should you not be able to travel due to unexpected medical reasons) and most importantly, unexpected medical costs abroad.
Myth 5#
Filing for a claim is difficult
While you are away from your home and need to file a claim under your travel insurance policy, people often think that it is difficult to contact the insurance company. They also have the mind-set that the response will be delayed. However, if you have bought a travel insurance from a highly rated insurance company, you will not have trouble reaching the insurance company or filing a claim with them.
So now that we have busted some myths around travel insurance, make sure that you carry it along with you in your next adventure. You can also reach out to us at info@newageib.com to learn more.
