Protecting your income if you are unable to work, or providing for your family in the event of your death, is as important as growing your wealth.
Having adequate levels of Life, Total & Permanent Disability, Trauma, and Income Protection Insurance ensures your finances don’t go backwards during stressful times in your life, allowing you to focus on getting back on your feet. We help you set up your cover, so that it remains affordable over the long term while maximizing the tax effectiveness of your premiums, and any benefits received on claims.
The common types of personal insurance include:
Life Insurance – provides you with the peace of mind that your interests will be protected after you’re gone. At a time when emotions are running high, life insurance can provide the people you leave behind with financial certainty. Common considerations include: covering the debt on your home, covering the debt on investments, providing a supplementary income for your family and an allowance to cover private school fees (if applicable). According to the Insurance Watch website, there are higher claims payout ratios on policies taken out through advisers/brokers
Trauma (Critical Illness) Insurance – In the event you suffer a serious illness or injury like cancer, heart attack or paralysis, trauma insurance provides you with choices. The money could be used to pay your medical expenses and treatment costs and, in some instances, provide you with lifestyle choices. You could use it to pay off your debts, go on a holiday, or even make a permanent lifestyle change such as reduced working hours. The money may also enable your spouse to take time off work so that they can take care of you or support you while you receive treatment. As Income Protection Insurance is typically only 70% of your income, you can make a provision to top up your trauma insurance to cover the shortfall.
Total and Permanent Disability Insurance – In the event that you can’t work in your current job or any other job again, total and permanent disability insurance helps make sure your long-term financial needs and goals are taken care of. The money can be used to pay your medical expenses, mortgages, personal debts and to make modifications to your home. The money may also enable your spouse to take time off work so that they can take care of you.
Income Protection insurance – We recommend life and income insurance. While many people think that life insurance is the most important cover to have, income protection insurance is the most frequently claimed type of personal insurance and it can help enable you to keep up with your everyday living expenses, if you’re unable to work because of illness or injury. This cover will pay up to 70% of your income (plus super) as a monthly benefit if you are unable to work because of illness or injury.
Key Person and Buy/Sell Cover – Life and TPD Insurance for Small Business Owners in the event of death or permanent disability.
Get in touch with our team to discuss affordable and tax effective ways to implement life and income insurance, to take the weight off your shoulders and give you peace of mind.
Useful Terms
Life Insurance – A policy that pays a lump sum or income to beneficiaries upon the death of the insured, providing financial support to dependents.
Total and Permanent Disability (TPD) Insurance – A policy that offers a lump sum (or regular payments) if the insured becomes permanently disabled and unable to work.
Trauma (Critical Illness) Insurance – A policy that provides a lump sum payment if the insured is diagnosed with a specified critical illness or condition, (such as cancer or heart illness).
Income Protection insurance – A policy that replaces a portion of the insured’s income if they are unable to work due to illness or injury, helping to cover living expenses.
For Small Business owners, we can also support you with Key Person Insurance and Buy/Sell Cover.
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