Personal Insurance: Protect your Wealth
Imagine for a moment your life plans were suddenly interrupted by a serious illness, a disability, hospitalisation or even death. Have you got all of these risks covered? How would you or your family cope financially? Could you repay loans or educate your children? To determine the right types of insurance and the right amount of cover, you should seek advice from your financial adviser. The main types of personal insurance are as follows.
This cover is also known as term life insurance or death cover, and pays a set insured amount of money when the insured person dies. The money can be directed to people you nominate as beneficiaries on your policy e.g. your spouse, other dependants, your estate or it can be distributed by the trustee of a superannuation fund when the cover is held under superannuation. However, your individual circumstances will be discussed with you to determine the best option for you.
Total & Permanent Disability (TPD) Cover
TPD covers costs such as rehabilitation, debt repayments and the future cost of living if you are totally and permanently disabled. TPD cover is often bundled together with life cover.
Also referred to as Critical Illness or Recovery, this insurance provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on a person’s life, such as cancer, heart attack or a stroke. It pays the insured lump sum amount if you suffer one of the specified conditions.
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This valuable insurance can provide you with a replacement income stream of up to 75% of your gross income (net of business expenses but before tax if you are self-employed), if you are unable to work due to sickness or injury.
Business Insurance (Keyman and Business Expenses Insurance)
But what if you are a Business Owner and suddenly struck down by a serious illness, disability or death? Business Expenses Insurance plans were created for self-employed people and business owners to provide a benefit if you are unable to work due to sickness or injury.
Business Expenses Insurance allows you to insure up to 100% of allowable expenses that your business is likely to incur if you become totally disabled. To determine the right types of insurance and the right amount of cover, you should seek advice from your financial adviser.