Protecting Your Family
Understanding Financial Protection
Financial protection can be considered as one of the most important aspects of planning for and protecting your future. Not many people consider how their family would cope financially should they die, become disabled or suffer a major trauma event.
Additionally, there is also the risk that an income-earning spouse could become unable to work for an extended period of time due to illness or injury. Many people do not consider the consequences of their income ceasing, or the impact this has on financial commitments such as mortgage repayments and other miscellaneous expenses, which do not necessarily stop when your income does.
Financial protection insurance can be established with a sum insured to enable you to clear your liabilities, make up for lost income for a specified or unlimited number of years, cater for funeral costs or medical expenses, and pay for ongoing rehabilitation amongst other things. The benefit of financial protection is that it allows the insured person to nominate a level of cover that reflects their specific needs and circumstances (e.g. a 25 year old single male with a car loan and a 35 year old male who is married with 3 children and a mortgage would most likely require substantially different levels of cover).
Additionally, it is also important to insure any non-income earning spouses against death, disablement or a major trauma event as their input into activities such as home maintenance and child care may be greatly affected should they become unable to perform these tasks. Insurance can provide additional funds to pay for professionals to help towards completing these tasks.
Life Insurance
Life Insurance gives peace of mind by ensuring that debts can be cleared and your family has financial security in the event of your death.
When it comes to your assets, there’s none bigger than your life… and if you have debts, a family, or both, you owe it to those you’d be leaving behind to be well covered if something happens to you. If you have life insurance in your super fund, which many people do, it’s a good start – but this is often not enough on its own.
Life insurance, or Term Life insurance, provides a cash lump sum in the event of death and in many cases upon diagnosis of terminal illness – helping your family eliminate debt, cover ongoing expenses (such as school fees) and cope financially with your loss.
To obtain a quote for Life Insurance or discuss your personal needs, please contact us on 1300 780 655 or send us an email via the button below.
Total and Permanent Disability
Total and Permanent Disability Insurance (TPD) is usually taken as an optional extra on a life insurance policy and covers against a total and permanent disability. The level of cover available is usually limited to the amount of life cover purchased. A claim is usually paid as a lump sum, when the disability meets the policy definition.
TPD insurance covers serious and permanent disablement but does not cover temporary disabilities or any traumas – these are best covered by Income Protection and Trauma Insurance policies.
The need for TPD is much greater than most people realise as generally, you will no longer be able to work - therefore reduced or no income - plus you will have rehabilitation and ongoing medical expenses in most cases.
To obtain a quote for TPD Insurance or discuss your personal needs, please contact us on 1300 780 655 or send us an email via the button below.
Trauma / Critical Illness Insurance
Trauma &/or Critical Illness Insurance can help compensate for the financial shock which often accompanies a traumatic event such as cancer or heart attack. It pays a lump sum which could be used on expenses such as medical treatment or 12 months worth of mortgage payments.
Most of us know someone who has been suddenly diagnosed with a serious medical condition like cancer, or has suffered a heart attack or stroke. Unfortunately no matter how healthy your lifestyle, good health doesn’t come with a lifetime guarantee.
Many people think that in the event of a sudden trauma or illness their health insurance or the government will look after them. However Medicare and private health insurance do not cover all the costs. Health cover may be limited in the choice and flexibility of treatments. It often doesn’t cover hospital and treatment expenses in full, and some conditions aren’t covered at all. In addition, out of pocket expenses such as the cost of a carer and rehabilitation expenses often aren’t covered.
Government allowances and benefits don’t go far in covering you against accident or sudden illness. The maximum payment available for any one benefit is a very basic fortnightly payment, which could even be reduced subject to income and assets tests.
Having Trauma insurance in place provides families with greater options should a critical illness occur.
To obtain a quote for Trauma Insurance or discuss your personal needs, please contact us on 1300 780 655 or send us an email via the button below.
