Protecting your lifestyle with personal insurance
Throughout your working life your most important asset is your ability to earn an income. Protecting your earning capacity should always be part of your financial plan. Should the unthinkable happen and you develop an illness or are involved in an accident it’s important to have adequate insurance to safeguard you and your family’s financial security. After all, we insure our cars and our houses and their contents. We should also be insuring ourselves.
There are a number of different types of insurance (and some are tax deductible) that could be appropriate and beneficial to you. We source a number of insurance providers so we can ensure that we can find the right type of insurance cover for you.
Some of the most common types of insurance are:
Term Life Insurance
Term Life Insurance provides a cash lump sum in the event of death of the life insured. It can be one of the most economical forms of protection. The cover normally applies immediately to any cause of death with the exception of suicide occurring within the first thirteen months. Premiums generally increase each year as you get older.
Total and Permanent Disability Insurance
Total and Permanent Disability Insurance (TPD) is normally an optional extra cover on a life policy and covers against permanent disabilities which prevent you from working in your chosen occupation. A claim will usually be paid as a lump-sum.
Trauma Insurance
Trauma Insurance (also known as critical illness insurance) provides a cash lump sum in the event of contracting a specified disease or trauma. The number of conditions covered (benefits) varies widely, with cheaper policies often offering fewer benefits. In most cases "accidental" types of traumas are covered immediately, although many insurers impose a waiting period (commonly 90 days after the policy is accepted) for certain illnesses.
Income Protection
Income Protection Insurance provides an income stream for you and your family should you become unable to work in your normal employment due to sickness or injury. This type of insurance is easily overlooked by many people but it is one of the most important. After all, could your family survive without your income?
Business Insurance
If you are self-employed, you should consider business expenses insurance which covers defined business expenses (i.e. rent and overheads) that your business must pay each month if you are unable to work because of an illness or injury. Benefits are often payable for a limited period i.e. 12 months.
Insurance cover may also be available through your superannuation fund. However, at times the cover available through your superannuation fund may not be adequate so it’s important to be aware of your circumstances.