You are here: Home > Financial Planning > Wealth Protection > index
Wealth Protection/ Insurance
Protect you and your family and make sure you are properly insured. Below is a brief introduction into some common forms of insurance. Please contact us for further information.
Life Insurance
With life insurance, the life you're really insuring is everyone else's! Life insurance that pays out upon death is to all intents and purposes death cover. You won't be around to enjoy any benefits. But your family will. And that's why it's important to have some kind of cover. As the major breadwinner, who would look after the rest of your family when you die? Do you really want to be beholden to someone else to look after your family? And what if they need to go on welfare?
Temporary and Permanent Disability Insurance
Where as Income Protection is quite often referred to as Temporary Disablement Insurance covering you for sickness and/or accident. TPD Insurance stands for Total and Permanent Disablement Insurance, this type of Insurance will pay a lump sum in the event of you not being able to perform your normal duties of your occupation for which you have training and experience. All Insurance companies provide this type of cover therefore as with any Insurance it is your policy document that will state what the definitions are in the event of any claim being made against the policy.
Trauma Insurance
If you're diagnosed with a critical illness or crisis, trauma insurance can relieve your financial difficulties. Unlike income protection insurance, which is dependent on your inability to work, trauma cover is paid out on the diagnosis of a defined critical illness regardless of your working status.
Instead of receiving a monthly income stream, you are paid a lump sum that you can spend on whatever you like- medical bills, your mortgage, an overseas trip, even a new car. The insurance company makes no demands on how you spend the money. Trauma insurance is often an adjunct to term life policies.
Income Protection Insurance
While life cover will look after your family when you die, what happens if you can't work because of illness or an accident and it's going to take months to recover? Or maybe you can never work again and you've got school fees to pay, food to buy and a mortgage hanging over your head.
This is when you need income protection insurance, otherwise known as disability insurance. It's estimated that you will earn something like $4 million over your working life, so it would be fair to say that your income needs protecting a lot more than your home and your car. This is even more so given that at the age of 35 you are 10 times more likely to be disabled then die.
Fixed Business Insurance
Should you become disabled for any period of time, who would maintain your business? Would a locum generate the same amount of income as you do? Or would you be faced with the prospect of watching your ongoing expenses eat away at your income?
All self employed people and small business owners have a number of on going fixed expenses, such as rent, loan repayments, rates, SGC super payments, leasing commitments, just to name a few.
Unfortunately, even though you may be forced to stop working for a while, the ongoing fixed expenses of your business will still have to be met on a regular basis.
Some key features of fixed business insurance include:
This article has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial advisor before making any investment decisions. Lee Virgin and Richard Lovell are an Authorised Representative of Hillross Financial Services Limited, ABN 77 003 323 055, AFS Licence No 232705.
Protect you and your family and make sure you are properly insured. Below is a brief introduction into some common forms of insurance. Please contact us for further information.
Life Insurance
With life insurance, the life you're really insuring is everyone else's! Life insurance that pays out upon death is to all intents and purposes death cover. You won't be around to enjoy any benefits. But your family will. And that's why it's important to have some kind of cover. As the major breadwinner, who would look after the rest of your family when you die? Do you really want to be beholden to someone else to look after your family? And what if they need to go on welfare?
Temporary and Permanent Disability Insurance
Where as Income Protection is quite often referred to as Temporary Disablement Insurance covering you for sickness and/or accident. TPD Insurance stands for Total and Permanent Disablement Insurance, this type of Insurance will pay a lump sum in the event of you not being able to perform your normal duties of your occupation for which you have training and experience. All Insurance companies provide this type of cover therefore as with any Insurance it is your policy document that will state what the definitions are in the event of any claim being made against the policy.
Trauma Insurance
If you're diagnosed with a critical illness or crisis, trauma insurance can relieve your financial difficulties. Unlike income protection insurance, which is dependent on your inability to work, trauma cover is paid out on the diagnosis of a defined critical illness regardless of your working status.
Instead of receiving a monthly income stream, you are paid a lump sum that you can spend on whatever you like- medical bills, your mortgage, an overseas trip, even a new car. The insurance company makes no demands on how you spend the money. Trauma insurance is often an adjunct to term life policies.
Income Protection Insurance
While life cover will look after your family when you die, what happens if you can't work because of illness or an accident and it's going to take months to recover? Or maybe you can never work again and you've got school fees to pay, food to buy and a mortgage hanging over your head.
This is when you need income protection insurance, otherwise known as disability insurance. It's estimated that you will earn something like $4 million over your working life, so it would be fair to say that your income needs protecting a lot more than your home and your car. This is even more so given that at the age of 35 you are 10 times more likely to be disabled then die.
Fixed Business Insurance
Should you become disabled for any period of time, who would maintain your business? Would a locum generate the same amount of income as you do? Or would you be faced with the prospect of watching your ongoing expenses eat away at your income?
All self employed people and small business owners have a number of on going fixed expenses, such as rent, loan repayments, rates, SGC super payments, leasing commitments, just to name a few.
Unfortunately, even though you may be forced to stop working for a while, the ongoing fixed expenses of your business will still have to be met on a regular basis.
Some key features of fixed business insurance include:
- Guaranteed Renewable
- Cover for fixed business expenses
- Locum cover
- Provision for fluctuating expenses
This article has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial advisor before making any investment decisions. Lee Virgin and Richard Lovell are an Authorised Representative of Hillross Financial Services Limited, ABN 77 003 323 055, AFS Licence No 232705.
