Wealth Protection

Wealth Protection – using insurance in your wealth creationAccidents, illness and premature death can happen to anyone. An unexpected tragedy is not something people like to think about, but what if you were not around and your family depended on you for financial support?

Wealth protection is one of the cornerstones of financial security. Without adequate risk protection the realisation of financial goals may never be reached in the event of death, injury or illness. Insurance is an essential part of planning for a secure financial future.

When thinking about your own adequate level of insurance cover, you should consider the following questions:

• Do you have someone financially dependent on you?
• Do you have debt?
• Does your investment strategy rely on your income?
• If your income stops due to ill-health, could you meet your financial commitments?
• Do you have insurance inside your superannuation?
• Is this insurance adequate?
• If you were unable to work due to  sickness or injury how long would you be able to cope without income?
• What type of wealth protection is available?

Type of Protection – Description – When should you consider

• Term Life – Policies pay a lump sum upon death or terminal illness. You should consider a term life policy if you have financial dependents or do not wish to burden others with any debt left behind.
• Total & Permanent Disability (TPD) – Provides a lump sum if you are unable to work in your own or similar occupation again, due to illness or injury. If you have ongoing financial commitments that could not be met if you were unable to ever return to work.
• Income Protection - Designed to replace your income if you are unable to work due to sickness or injury. If you have dependents, if you are the primary income earner in the family, or if you could not afford to be without income for an extended period.
• Trauma Cover – Provides a lump sum in the event of an injury or sickness as defined in the policy (eg cancer, heart attack, stroke). If you have insufficient capital to pay for medical attention, have financial dependents or do not wish to financially burden others if you suffer a serious illness.
• Business Expense Cover - Cover ongoing expenses of your business, such as rent, salaries, and electricity, while the primary income generator is unable to work due to sickness or injury. If you are the primary income generator in a small business, or if you are self employed.