Paul Glossop: Good day guys and welcome again to Pure Property Investment one on one. I’m joined again today by Andrew Foo. Andrew is the principle of Apexx Wealth. He’s also a financial planner. And that’s probably why I’ve got you in the studio today mate. Is that probably talk a little bit more about property investing, property investors as well as insurance and protection. Now when I say that, I don’t probably necessarily mean landlords insurance, building insurance and other things that may fall into that general space. It’s probably more about protecting the individual investor and how they can make sure they insured correctly and maybe not even over insured to make sure they’ve got the right insurances in place to protect their wealth and their position.
Andrew Foo: You know, that’s a great point. You know when people are looking to purchase their investment properties, they don’t think about what could happen, they don’t think about the worst case scenario. They think, “Okay, we going to get this property, this is how much money is going to come in it’s going to grow over time and that’s great.” But unfortunately, life doesn’t work like that.
You know we susceptible to you know illness and injury as we go through life and that’s where insurance plays an important part. Because you can build your wealth and that’s great but we’ve also have to look at measures to protect it. So that you know takes in to account life insurance, you know total and permanent disability insurance you know trauma insurance and income protection.
They the four main insurances that we deal with, with clients to help insure that their family and their assets are protected. Now it all comes down to cash flow as well. I mean insurance is a preventative measure, it’s great to have it but we don’t want it to break the bank. So there are ways that we can structure the ownership and how the insurances are paid for depending on the client’s situation and what their cash flow is like. So, whether that’s through super or a combination of inside super and outside super, we can definitely look at all those avenues.
Paul Glossop: Good points there mate, and I think some of the key aspects is insurance isn’t just there to make money for the insurer realistically your role is to say “Well, what do you currently own? How are you currently insured? And then from there, how can we make sure that you protected adequately without obviously getting unnecessary protection and making sure that it’s cost effective.”
The other part too is that’s there to protect you. Now you might have assets which are cash flow positive and you might say “Well, I’ve got a — potentially from my side of things, my income goes down or permanently disabled or I fall ill or lose my job or whatever comes with it. That particularly property might not be the one that needs to be protected but there might be other aspects as far as life insurances and all these other succession planning insurances which for the most part people just don’t think about because you where, you don’t know what, you don’t know.
And I think part of that is really understanding where do you currently sit, what protection you currently have and how can we make sure that you have protection in every place to make sure that if for whatever reason the unforeseen arises, you don’t have to sell everything to mitigate and claw back those options. And I think for me personally, as a professional investor, one thing that I always want to make sure, both for myself and my clients, is that if we are buying a property the out is not to sell everything, the out shouldn’t be to liquidate, the out should be to say make sure you got the right concession’s in place to say if this happens you’ve got this, if that happens you’ve got this.
Your plan is to make sure your worst-case scenarios are understood. And over a long term you’ll achieve the better outcome than you would but you’ve got the protection. You can sleep easy knowing that all that’s in place and it’s been put in place by the right person with the right skills. A lot there to probably think about guys. And I think if you don’t have or you’ve got a question mark right now thinking about “ I don’t know what insurances I have and how they protect me”, give Andrew a call, his details are at the bottom of the screen as well as us.
You can give us a call at any time for any reason as well our contact details are at the bottom of the screen and you can get in touch with us anytime. Look forward to catch up with you soon and take care. Cheers!