You have worked hard to get where you are. Building up your assets and working towards personal and family goals is a life long process. Unplanned events like an accident or an illness can mean everything you have built up could be lost in an instant.
Personal insurances provide the money you need when things go wrong. Imagine what your life would be like if you or your partner became seriously ill and could not work: would you be able to survive financially?
Should you lose the ability to earn an income through illness, injury or disablement, risk insurance can assist with financial goals and obligations. In an event such as death, it ensures security by providing financial protection for your family. For a business, it allows partners to continue running the firm without added strain on your working capital.
Cover can be designed to fit your circumstances including:
Life cover — this alleviates the financial burden your family or business associates may be left with after your death. It is paid as a lump sum that beneficiaries can use at their discretion to assist with medical costs, funeral expenses, repayment of debts or just to help secure their future. There are a number of optional benefits within Life cover that allow the insured to apply for more features to cover things such as school fees, future expenses, family protection or in the case of a business, to employ skilled staff due to leave relating to injury in the workplace.
Total and Permanent Disablement (TPD) — this provides a lump sum in the event of a permanent disability that prevents the insured from returning to work. It is often bundled together with a life cover policy. The funds can be used at the beneficiaries’ discretion to provide for dependants or to compensate for the loss of income, to repay debts or cover medical costs as well as fund lifestyle adjustments such as wheelchairs, ramps and manual car controls.
Trauma insurance — this provides cover if the insured is diagnosed with a specified illness or injury. It includes major illnesses or injuries that will make a significant impact on a person’s life, such as cancer or a stroke. It is also referred to as crisis recovery insurance and is often paid as a lump sum. Like TPD, funds can be used at the beneficiaries’ discretion, for example, to pay for additional medical care, or to pay off the mortgage to relieve financial pressure. More importantly, funds can be used to cover rehabilitation, carers or other day-to-day living expenses.
Income protection — this is an important consideration for anyone who relies on a salary because it replaces the income lost through your inability to work due to injury or sickness. It can be especially important for the self-employed, small business owners or professionals whose business relies heavily on their ability to work. Income protection usually provides a monthly benefit of up to 75 per cent of your salary for an agreed time period. It can also ensure that business continuity is catered for even when the owner can no longer run the business. Premiums paid for this type of policy are generally tax-deductible, and you may also be able to pay for this type of insurance through superannuation.
Allied Investment Group advisers can investigate the most cost-effective and appropriate cover for your specific circumstances.
We work closely with a specialist risk insurance specialist who understands our clients. We can provide you with a referral if this is something you require.