Provide Context for your Client's Protection Products
Faced with the need to differentiate and generate increased revenue
from protection products, financial organisation's will see the
advantage of extreme flexibility and ease of use in 3Q Solutions Asset
Protection product.
Due to the ever demanding and highly sophisticated
lifestyles of people nowadays – clients must be aware of the risk
that they are running in the unfortunate event of illness or premature
death.
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Asset Protection consists of three components. These include:
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Asset Protection includes products to protect the client from catastrophic lifestyle decline and premature asset protection in the event of death, critical illness or loss of income.
If a client falls ill or dies and cannot work, their assets will erode
over time. In order to plan for this, protection can help maintain
the lifestyle of the client and their family.
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For example consider a 40 year old whose lifestyle cost absorbs the first €80,000 of earned income and who has accumulated €0.5m in investment assets. At modest earnings growth of 3% to age 65 he or she stands to generate €2.9m, but if this ability is removed because of ill health or premature death, not only is the future income stream gone but the assets are at catastrophic risk as the sole source of future income. In under seven years assets growing at 3% above inflation would be fully exhausted to maintain the current lifestyle, and even it were halved the asset pot would be gone by age 55.
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This application is based on reaching financial independence which will allow sufficient finance for the insured family in the event of premature death or ill-health. The client will understand the time it will take for their assets to erode or the drop in lifestyle needed to ensure asset survival.
Hence this tool demonstrates a compelling reason to purchase asset protection in the context of the client’s asset holdings for their family.
For more information, please contact info@3q-solutions.com. |
