LIFE INSURANCE is an important investment tool in estate planning, advises Othneil Blagrove, senior manager of sales at JN Life Insurance, and therefore critical to creating generational wealth.
“It is most important that we consider who we are going to be leaving our wealth [to]. After you have acquired the wealth or the assets, you need to ensure that something is in place if you are no longer in the picture,” he advised.
Blagrove gave that advice while addressing a panel discussion titled ‘Building and Protecting Generational Wealth’, which was organised by JN Fund Managers (JNFM) in collaboration with JN Life Insurance and JN General Insurance, member companies of The Jamaica National Group.
Blagrove used the occasion to underscore the need for persons to write a will, so that wealth can be passed on to loved ones and relatives. He explained that the failure to prepare a will makes the situation more difficult, as it can be expensive to transfer assets, such as property, to the beneficiaries.
The JN Life senior manager stated that if the person was covered by life insurance, it could be used to cover those expenses, and ensure that family members can hold on to those assets, and continue to benefit from them.
“Even if you have a will and everything is sorted out, once you are no longer in the picture, there are final expenses which have to be paid. These include transfer taxes, estate duties, fees to pay your attorneys and persons who execute the will. All those expenses must be paid, and there may not be an emergency fund,” he pointed out.
Explaining the types of insurance policies which are available, Blagrove pointed out that JN Life offers a whole life plan and critical illness plan, which also protect beneficiaries when persons pass on. The individual critical illness plan covers 13 illnesses and has a reoccurring benefit, where on first diagnosis, the insured can make a claim, and if there is a reoccurrence they are able to claim again, as long as their premium payments are up to date.
“It is important that you protect yourself so that in case you are diagnosed, there is something there. Put the risk or weight on the insurance company and not yourself. Your pocket can’t manage it. Ensure that you have that set aside, so if in case it happens, then you will be able to take care of whatever treatment needs to be taken care of; or replace your income and take care of final expenses, so that your family is provided for,” he explained.
Citing other insurance plans, Blagrove explained that there are family indemnity plans, which also cover family members, in the event of illness or an accident.
Building and Protecting Generational Wealth was mounted by JN Fund Managers to assist its clients and JN Group members to enhance their financial security by building and preserving wealth. It also focused on how one can create wealth for their family, either through real estate, life insurance, or stock market investments.
The other panellists were Chris Hind, general manager, JN General Insurance, and Hugh Miller, head of asset management, JN Fund Managers. The session can be viewed on YouTube at https://youtu.be/FnZFXi6WvaU.