Personal Insurance

Life Insurance – How Much is Enough?

Life Insurance is the ‘cornerstone’ of personal insurance protection. It is an important aspect in building financial security to ensure that the people dependent on you are protected against the unexpected.

Life Insurance pays an agreed ‘lump sum’ payment in the event of death or the terminal illness of the life insured. The premium is based on your age, sex, smoking status, and the sum insured. Once established, the sum insured will generally be indexed in line with inflation.

So how much is enough? Factors that you should consider may include:

• The repayment of all household debt.
• Funds to pay a commitment to an external business or person.
• The cost of education and care for any children.
• The amount of potential household income that needs to be compensated by premature death.

As our lives change, it is important to review your life insurance to ensure that it continues to meet your needs. 

Our advice can assist by ensuring that a sufficient amount of cover is selected to meet your needs and that the policy is structured so that any funds end up in the correct hands.

Contact us to find out how inexpensive securing peace of mind can be!

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Income Protection – Protect your Greatest Asset!

Our income funds our mortgage repayments, our car payments, our children’s needs, our holidays, our lifestyle and our well being. How long could you afford not to have an income in the event of serious sickness or injury?

We insure the possessions that our income finances, yet we may not have insured our greatest asset – our income!

Assuming an average income of $50,000 for a 45 year old with 20 years left before retirement. Ignoring inflation, change of jobs, promotions etc, your expected future earnings are approximately $1 Million!

• How would you meet your mortgage/ rent commitments if you were sick or injured for an extended period?
• How would you meet your family/ lifestyle commitments?
• Would you pay an insurance premium to provide you and your family with adequate protection to support this valuable asset?

Income Protection will replace up to 75% of your regular income against sickness or injury that prevents you from going to work. There is a waiting period before payments commence, anything from 14 days, 30 days, 60 days, 90 days up to 1 or 2 years.   Payments will continue until you are able to return to work or the expiry of the policy (whichever is the earlier). Maximum policy terms range from 2 years, 5 years or up to retirement age of ‘age 65’.

The sum insured usually increases with inflation ensuring that you continue to be protected over time relative to ‘today’s’ dollars. The premium is based on age, sex, occupation and the length of waiting period and policy period. 

Generally, premiums for this form of cover are able to be claimed as a Tax Deduction, however any insurance proceeds paid are subject to income tax - you should consult your Accountant for formal confirmation.

Contact us to let us show you how affordable this protection strategy is.

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Trauma Insurance – Money to Ease the Pain!

With the remarkable advances in modern medicines, more and more people are now surviving major traumas such as heart attack, cancer, coronary artery surgery, stroke etc. However, the recovery period and the cost of care associated with such illnesses normally places extreme financial strain on the person suffering the illness.

Trauma Insurance pays an agreed ‘lump sum’ to the insured person upon medical diagnosis of one of a number of specified conditions (up to 30 conditions can be specified).  Most policies have a 14 day survival period requirement after diagnosis.

Such a payment will assist you to be financially secure and may be used in any way you like including:

• Repay household debt.
• Offset medical expenses
• Lifestyle choices such as holidays, asset acquisition etc.

Benefits are generally considered tax free.  You should consult your Accountant for formal confirmation.

Contact us to find out more about this important protection strategy.

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Total and Permanent Disablement – Who will Care for Me!

Total and Permanent Disablement Insurance (TPD) provides an agreed ‘lump sum’ payment should you be classified as being permanently disabled, due to sickness or injury, and never likely to perform one of:

• your usual occupation Or
• an occupation for which you are qualified by reason of education, training and experience Or
• homecare style duties

You must be totally disabled for a minimum period before any payment will be assessed – typically 6 months.

Benefits are generally considered tax free -this may not be the case depending on ownership of the policy. You should consult your Accountant for formal confirmation.

So how much is enough? Factors that you should consider may include:

• The repayment of all household debt.
• The education and care needs of any children.
• The amount of potential household income that needs to be compensated by premature disablement.
• Funds to meet long term care costs.
• House remodelling costs.

Whilst care has been exercised, the taxation information contained in this website is provided as a guide only and may not be relied upon.  If in doubt, you should seek independent tax advice from an accountant or qualified tax adviser.

Find out more about this protection strategy which will ensure that your "who will care for me" needs will be met.

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