Protection & Estate
This page tracks insurance coverage and estate-planning readiness for the family.
Current Context
- Family: Jonathan (41), Julia (40), Henry (12), Pippa (9)
- Liquid assets: ~$5.5M NZD
- Properties: two unencumbered homes worth ~$2.6M combined
- Income concentration: Jonathan is the primary earner through Microsoft; Julia earns ~$1K-$1.5K/month part-time vet locum income
- Current policy and document details: largely unconfirmed and marked TBD until verified
Insurance Coverage Matrix
| Type | Status | Provider | Cover Amount | Annual Cost | Adequate? | Notes |
|---|---|---|---|---|---|---|
| Life (Jonathan) | ❓ TBD | — | — | — | — | Key person risk |
| Life (Julia) | ❓ TBD | — | — | — | — | Check whether cover is still needed for childcare, household continuity, and immediate costs |
| Income protection (Jonathan) | ❓ TBD | — | — | — | — | Confirm waiting period, benefit period, and agreed-value vs indemnity |
| Trauma/critical illness | ❓ TBD | — | — | — | — | Useful for one-off medical, recovery, or lifestyle disruption costs |
| House insurance (main) | ❓ TBD | — | — | — | — | Confirm full replacement cover, excess, and sum insured |
| House insurance (beach) | ❓ TBD | — | — | — | — | Confirm holiday-home terms, natural hazard cover, and vacancy rules |
| Contents | ❓ TBD | — | — | — | — | Check high-value item limits and whether both homes are covered appropriately |
| Vehicles | ❓ TBD | — | — | — | — | Confirm agreed value, excess, and named drivers |
| Liability/umbrella | ❓ TBD | — | — | — | — | Check whether any personal liability cover exists beyond house/car policies |
Estate Planning Checklist
- Wills (both) — current and valid?
- Power of attorney (financial)
- Power of attorney (medical)
- Trust structure consideration
- Beneficiary designations on all accounts
- Letter of wishes
- Digital asset access (can Julia access Kernel, InvestNow, Fidelity?)
Risk Analysis
Life insurance
With ~$5.5M liquid plus two unencumbered properties, the family is probably already self-insured for long-term income replacement. That makes large life cover less critical than it would be for a still-leveraged household. The remaining reasons to hold some life insurance would be immediate liquidity, childcare/support costs during transition, estate equalisation, and reducing pressure to sell assets at a bad time.
Income protection
Income protection is less compelling when already financially independent. If Jonathan stopped earning tomorrow, the family could still fund life from the portfolio. The question is not survival; it is whether paying premiums is worth protecting continued high savings, RSU accumulation, and lifestyle flexibility during the remaining working years.
Incapacitation risk
The biggest practical risk is not death but incapacity. Without enduring powers of attorney and a clear operating playbook, Julia may not be able to manage investments, transact across platforms, or coordinate the family finances quickly. For a household with ~$5.5M liquid assets, this is likely the highest-priority protection gap until proven otherwise.
Recommended Actions
- Confirm every current insurance policy: provider, policy number, cover amount, premium, renewal date, and key exclusions.
- Verify whether Jonathan has any employer-provided life, disability, or trauma cover through Microsoft and whether it is portable if employment ends.
- Decide explicitly whether life insurance is still wanted as a liquidity tool rather than as true income replacement.
- Review whether income protection still earns its keep given FIRE status and high existing assets.
- Confirm both wills are current, signed, and aligned with how assets should pass to Julia and the children.
- Put enduring powers of attorney in place for both financial and medical decisions if not already done.
- Create a practical access register covering Kernel, InvestNow, Fidelity, bank accounts, lawyers, insurers, passwords, and emergency instructions.
- Ask an estate lawyer whether a trust structure adds real value here or just complexity and cost.
Review Schedule
Review annually in August (alongside RSU grant review).