Personal Insurance

The Importance of Insurance

The most common questions we hear from clients, when it comes to insurance, are “What types of cover are available?” and “How much is enough?”

Most people think Life Insurance is simply that – cover that pays out in event of your death.  However there a few types of cover and it is vital to make sure you have sufficient insurance which may involve a combination of the following:

  1. Life Insurance – pays a lump sum on your death or the diagnosis of a terminal illness. So when the worst happens, your foresight will pay off the mortgage and other debts, provide for your children’s education, obtain child care and secure your family’s lifestyle. This will allow your family to focus on supporting each other, not worrying about paying the bills. As the years pass they will continue to be thankful you thought ahead.
  2. Trauma Insurance (Critical Illness Insurance) – pays a lump sum on the diagnosis or occurrence of one of a list of specific illnesses such as heart attack, cancer or stroke. That payment gives you choice and flexibility at a time when you need it most. You will be able to reduce your working hours, spend time with your family, get treatment or rehabilitation and pay for a carer and any number of unexpected things.
  3. Total and Permanent Disability Cover - Total and permanent disablement (TPD) is your financial back-up plan. It gives you the confidence to seize life’s possibilities knowing you’ve made plans to secure your family’s financial future...just in case!

    TPD insurance helps you modify your lifestyle and gives you choice and options if you're left without the ability to work. TPD provides a one-off payment that can help you:

    •    fund lifestyle changes and home modifications
    •    cover the cost of long-term care or medical expenses
    •    pay off any debts including your mortgage
    •    fund an ongoing income for your family
  4. Income Protection - Most people insure their homes, cars and even their pets against unforseen events in the future. However they don’t insure their biggest asset – their ability to earn an income! Did you know the lifetime income potential for a 35 year old male on a base salary of $52,800 p.a is around $2.5 million?

    Income protection pays you a monthly benefit – just like your salary – and generally covers up to 80% of your pre-tax salary. The money can help you:

    •    cover your mortgage or rent payments
    •    continue to make your repayments on your car
    •    take care of all your normal bills while you focus on getting better.

No one wants to rely on the Government or family should they be unable to work and income protection gives policy holders the financial safety net to preserve their lifestyle while they concentrate on recuperating. An income protection policy in your personal name is also tax deductible.