When life gives you lemons – make lemonade!
Contingency planning should be an integral part of every financial plan. For most Australians, the need to protect themselves and their family from the adverse financial effects of an accident or illness is a high priority. Would you ever consider not insuring your car or your house, why not your income or your life – your family depends on you!
Life Insurance – Overview
Life insurance is generally obtained through 3 channels
- Retail Advised risk insurance
- Group Insurance
- Direct Insurance
We deal predominately in 1, the retail advised market. You will find in this market, policy terms are strongest, you will be advised on the best level of cover & structure and we can regularly review your insurance options should you desire.
Group insurance is generally supplied via your superannuation fund however insurer, amount, and terms can change and more importantly with most policies, you have not been medically underwritten and this is done at the time of claim which may result in an undesirable outcome. You find cover will reduce from a predetermined age by up to 20-25% per year, which may not be in your best interest.
Direct Insurance is provided online, direct with the insurer at your desired level of cover and cost being the prime drivers, policy benefits are not a huge priority in this space.
Risk Insurance
There are five broad categories of insurance that should be considered:
- Term life;
- Total and permanent disability;
- Trauma or Crisis cover; and
- Income protection
- For small business owners – Business Expenses coverage should also be a consideration.
Life insurance is the cheapest way to buy a lump sum of money for a variety of reasons:
- Repay debt,
- Leave a lump sum for the family to invest & live off,
- Buy out a business partner
- Insurance cover for key people in your business.
Unsure of how to structure a policy – Contact us!
Income Protection – probably your most important asset – the ability to earn an income, think of your earnings capacity over 40-50 years in the workforce, it runs into millions of $$.