Wealth Protection
The Importance of a Personal Insurance Strategy
How would we maintain our lifestyle, personal relationships and financial commitments if we were unable to earn an income because of a sickness or an injury? Half of all Australians over the age of 30 will suffer a major illness that can lead to a long-term disability, and consequently, a long-term loss of income.
An Income protection insurance policy is absolutely necessary. If you’re temporarily or permanently unable to work because of sickness or injury; it will pay up to 75% (in some cases more) of your monthly income. This income will ensure that your lifestyle needs continue to be met and investments are not realised prematurely. It will therefore also ensure peace of mind and help ensure personal relationships are not damaged due to the stress of a loss of income in the household.
Have you thought then about how your family or your partner would cope financially if you lost
your ability to earn an income? It’s not surprising that most people don’t like to think about this but the reality is that illness and accidents are risks we all face.
Could you afford to take several months off work without pay? If you are self-employed, could your business survive if you weren’t around? If the answer is no, then it is important to look at protecting yourself against these risks.
Types of protection
Life Insurance provides a lump sum payment in the event of death or diagnosis of a terminal illness. It’s the most common component of any personal insurance solution, there are additional benefits of placing your life insurance strategy inside of superannuation.
Total and permanent disability (TPD) cover is a lump sum payment in the event that you are permanent disabled and have ceased gainful employment. It is typically used to pay off medical expenses, debts and fund living expenses.
Income protection provides income replacement options to protect your lifestyle, assets and independence if you suffer illness or injury. It will provide a monthly payment of up to 75% of your income while you are unable to work due to accident or sickness.
Trauma insurance protects you from serious medical conditions and illnesses. You will receive a lump sum payment if you are diagnosed with or suffer a life-threatening illness, allowing you to concentrate on what you really need at this time – your recovery.
Business expense insurance covers any ongoing expenses of your business, such as rent, salaries, electricity and loan repayments, or bringing in a locum to run the business while the primary income generator is unable to work due to sickness or injury. If you are the primary income generator in a small business, or if you are self-employed, you should consider this sort of cover.
Why review?
Personal Insurance is not necessarily organised as a once off, hoping that nothing will ever happen to you. It is part of your overall financial security and planning that requires ongoing adjustment as circumstances change, and insurance policies improve.
We have the expertise to review your current life insurance policies, and to help you understand if you have the appropriate coverage based on your objectives.