Your income is probably your biggest asset. But do you have it insured?
What would happen to you and your family if you couldn’t earn an income for six months? What would happen if you could never work again? With expenses and repayments haemorrhaging your account, how long would it take before all your money has gone?
Australia has a chronic underinsurance problem.
Ironically though, not being able to work and losing your income is a frightening thought for most of us. This applies as much to income protection insurance as it does to life, home or health insurance.
“2 in 5 Australians would rely on social welfare if their main income earner were to suddenly become unable to work.”
- John Brogden, CEO of the Financial Services Council.
Would you be happy to rely on welfare?
If your answer is no, you’ll be relieved to know that there are excellent insurance options available. But you need the guidance of an experienced financial adviser to get the best insurance product for your needs.
Life insurance: it’s time for a rethink
New innovations have made life insurance options more simple, convenient and cost-effective than ever.
3 in 4 Aussies think that life insurance relates to ‘life’ and only pays a lump sum on death. But there are several other types of insurance to cover a range of circumstances.
Better still, there are now innovative new products which can include several types of benefits in the one policy. And they’re far more cost-effective than you may think.
Types of insurances
1. TDP (Total & Permanent Disablement)
TPD insurance is a lump sum payment that covers you if you become totally and personally disabled. It would help cover the cost of rehabilitation, debt repayments and your future cost of living.
TDP can be defined as either when you:
can’t work on your usual occupation, or
can’t work in any occupation in the future
it’s essential you understand exactly what you’re TDP will cover you for
2. Life insurance
Life insurance is a lump sum payment given to your spouse or family if you pass away.
3. Income protection insurance
Income protection insurance keeps your income coming in, usually monthly, if your working life is disrupted by illness or injury. Typically, it provides about 75% of your income if you cannot work.
4. Trauma Insurance
Trauma insurance protects you from the impact of illnesses such as cancer, heart attacks and strokes. It’s a lump sum of money to cover immediate medical expenses such as intensive care and chemotherapy and also helps to cover other financial costs when a medical diagnosis or serious injury occurs.
Insurance providers we use include AIA, Asteron, BT, MLC, OnePath, TAL and Zurich.
“One third of women and one quarter of men will suffer from cancer at some stage in their lifetime, over half of whom will live for longer than five years after the diagnosis.”
If this was you or your family, what would this mean financially and how would it change your living situation?
Book an appointment with Smart Capital and find out more about an insurance package that’s suitable for your needs and lifestyle.
“34% of working Australians don’t have any disablement insurance. And most are underinsured. ”
Estate Planning
We have lawyers available and are keen to make sure you give thought to the consequences of a premature departure, and the tax consequences for your estate.
Protect your wealth, protect your family.
It may be unpleasant to think about, but not everything goes to plan.
If you were no longer able to work, do you have income protection in place to look after you, your family and your home?
If your partner became unwell, would you have the appropriate cover? Would you have to sell your house and disrupt your children by changing their school?
If you were to pass away, is there a power of attorney in place? Does the executor understand your wishes, and will your assets pass to the right people with the least tax?
It pays to think ahead so you can enjoy future peace of mind.
Book an appointment with Bruce today to discuss your risk management plan.
We're conveniently located in South Perth, near Como and Kensington.
Contact Smart Capital Financial Planners in South Perth today.