When Bad Things Happen

While insurance cannot prevent death or disability occurring, it can assist you and your loved ones in coping with the financial impact of these unexpected events.

People require life insurance for various reasons and primarily it is as a result of their concern that if the worse were to happen then their family would be financially comfortable (debt free and guaranteed income).

We are fortunate in Australia that the great majority of adults should live well into their 80’s and most will be blessed with good health during their working lives.

However, death, accidents and illnesses do occur and the wise generally protect themselves and their family against the adverse financial effects of such events.

Many people would prefer to assume that their superannuation fund will cover them adequately; whereas in reality most funds do not tailor insurance to members individual needs but simply provide a minimum sum insured.

Because insurance is intended to cover you for an unexpected event, you are less likely to need to spend your savings, borrow money or sell investments to meet your financial obligations. If you or your family are taken care of financially you can focus on recovery.  At a time when finances are the last thing people wish to think about, insurance helps you get back on your feet.

Premiums can be structured to suit your cash flow.  Most clients are able to use their superannuation funds to pay for part of the premiums for their personal risk insurances.

There are four major personal insurance :

1. Life Insurance: provides a lump sum if the insured person dies or is diagnosed with a terminal illness.  Can be used to pay off debt and provide income for surviving family.

2. Total and Permanent Disablement Insurance: provides a lump sum if the insured person suffers total and permanent disablement and is unlikely to work again.  Can be used to pay off debt, pay for medical expenses and top up income protection cover.

3. Trauma Insurance: provides a lump sum if the insured person suffers one of a list of specified conditions, such as cancer, stroke, and heart attacks.  Can be used to pay for medical expenses, top up income protection & replace partner’s income if they need to take time off work to look after you.

4. Income Protection Insurance: provides a monthly benefit if the insured person is unable to work due to illness or injury and is totally disabled or partially disabled for longer than the specified waiting period.  Can replace up to 75% of your income + super contributions.