Are you and your family protected for life’s unexpected challenges? Life is full of risks and dangers but there are ways to have your family fully protected should the unexpected occur.
Allot of people focus on growing their wealth but don’t always realise the importance of protecting it. Imagine what your family’s life would be like if you or your partner died or become seriously ill and could not work. How would you survive financially?
Alarmingly over 95% Australians do not have enough personal insurance.
Below are the key family protection policies that should be considered and the reasons why –
Life Insurance –
This cover will give your family a lump sum amount in the event of your death. Ideally you would have enough cover to have your family fully protected so they are financially protected for the worst. The lump sum should be able to payout debt, help with immediate expenses like funeral costs, children’s education expenses, and unpaid medical bills and potentially provide an income to help your family if they need extra income.
Total and Permanent Disability (TPD) –
In the event you become totally and permanently disabled and can never return to work this cover will give you a lump sum payment to help repay debt, fund medical costs and give you more financial peace of mind.
Key Person Insurance, Life Insurance, Key Man insurance, Financial Advice, Business Protection
Trauma Insurance –
This insurance policy is like TPD insurance, however it will give you a lump sum if you suffer a specific illness or injury covered by the policy such as Cancer, Heart Attack, Stroke, Alzheimer’s disease, major organ failure, severe burns and many more. A frightening statistic is Australians have a one in three chance of being diagnosed with cancer before age 75.
Income Protection Insurance –
By having an Income protection policy you can cover up to 75% of your gross annual salary in the event you are unable to work due to illness or injury. Interestingly 83% Australians insure their car but only 31% insurance their income. If you suffer an illness or injury and can’t work how will you pay your bills? The premium is also tax deductable. Over 60% of Australians will be disabled for more than one month during their working life. 25% will be disabled for more than three months.
You probably have some personal insurance through your Superannuation fund but most of the time it is not enough to fully protect your family. You should also read the fine print with details of the policy and completely understand how it will pay you in the event of a claim.
In summary your wealth protection plan needs to be implemented to protect your loved ones in the event of the unexpected. You mortgage and debt repayments, medical costs, school fees and your everyday living expenses need to be looked after if you are unable to work and earn and income or pass away.
It is not easy thinking about the topic but needs to be implemented and reviewed on a regular basis. The solution is customised based on your individual situation. It is important to seek help from a Certified Financial Planner to have a customised plan.