Often, when people talk about insurance they first think of their home, cars, boats and caravans. This is general insurance and covers your material assets. But have you thought about how you came to afford these things? What about your personal assets – your capacity to earn an income that supports you and your family? You might just be the most important asset – it’s your income that helps to create and shape your lifestyle!
Alarmingly, recent research showed that 83% of Australians have insurance for their car, but only 31% have insurance to protect their income. Question: if you don’t have an income how do you afford to run the car or pay for its insurance? How do you pay the bills and put food on the table?
What if an accident or illness took everything away? A Protection Plan can help you maintain financial success in the face of life’s ups and downs. Your Protection Plan helps provide your family with a safety net, so the fall is not too far.
The chances are you’ll also need life insurance as well so that your loved ones don’t suffer financially when you die.
Life Insurance provides a lump sum payout upon death, or terminal illness. The lump sum payment can help to replace your income and can help your family meet many important and ongoing financial needs. This can be everything from daily living expenses, to paying off major debts such as car loans, credit cards and mortgages; or having an amount of money to ensure your kids have the education opportunities they would have experienced if you were still around.
There’s much more to personal insurance than just life cover. What happens when you are injured or become disabled and you cannot work ever again? What if you suffer a stroke or heart attack that requires considerable medical attention and rehabilitation? It seems that medical skills and technology are advancing everyday which is allowing us to live longer and survive through those “serious health events”. The good news is you survived, but you might not be able to work for a long time. Some people are never able to return to their work, but they haven’t died so there is no life insurance payment to help financially. So now what? There are a few different insurances that come into play here, and the amounts of each that you need will depend on your specific circumstances and what you want covered. This is where an experienced Adviser can help to create your individual Plan.
For most clients in the above situation, we’d look at a combination of these three insurances:
- Total and Permanent Disablement Insurance (often abbreviated to TPD)
- Trauma Insurance
- Income Protection Insurance
Just the same as your car insurance can be comprehensive cover or third party cover, agreed value or market value, there are many options, types of cover and different ways to manage the costs of your personal insurance. Different insurance companies, products and cover level will all suit different people. That’s why we get to know you, so we can make sure your insurance is designed for your exact needs, budget and cashflow.
If you run your own business as a sole trader, as a company or with business partners, your insurance needs can be a little more complex, but the good news is that’s one of our specialities. Whether you’re a Doctor, Dentist, or Vet; in manufacturing or trade services, Real Estate or Senior Management click here to see how we can tailor specific insurance for you. (Hyper link click here to go to section on buy sell insurance etc).
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Fairway Financial Advice strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their personal circumstances.
When considering the purchase of any life insurance policy, always read the relevant Product Disclosure Statement so you are aware of the full features and implications of the policy.
 Canstar: 2014 report https://www.canstar.com.au/life-insurance/income-protection-insurance-more-important-than-ever/