Insurance is one of those things that when we realise we need it, it’s too late.
At FMG, our mission on this planet is to protect your wealth… so my first question is, do you have Insurance cover? Just as importantly, is it the right type of cover? And is it the right amount of cover?
As a busy professional or business owner, it can be hard to find the time to think about how well you’re protecting yourself, your family and your business, but the consequences of failing to do so can be massive.
That’s why we’re giving you a quick run-down of the types of insurance to consider, and the next steps you can take.
The Four Pillars of Protection
To keep things easy to understand, we like to think of insurance in the context of 4 pillars of protection. This goes for both personal and business protection.
If you’re a working professional, you should consider:
- Life Insurance – provides a lump sum payment (subject to conditions) if the Life Insured dies or is diagnosed with a Terminal Illness where death is likely to occur within 12 months
- Total and Permanent Disability Insurance (TPD) – designed to provide a lump sum benefit to the life insured in the event of a medically diagnosed event that renders the person unable to work again
- Critical Illness Insurance – provides peace of mind while you’re unable to work
- Income Protection Insurance – a monthly benefit that pays around 75% – 85% of your income while you’re unable to work
The 4 Pillars of Protection for Business Owners are:
- Business expenses insurance – benefit paid up to a year for certain business expenses incurred while you’re unable to work
- Buy / Sell Agreement funding – relates to how the departing owner or their estate will be compensated for surrendering their interest in the business
- Keyperson Cover – a life insurance policy that a company purchases on a key executive’s life
- Income protection – a monthly benefit that pays around 75% – 85% of your income while you’re unable to work
How can you check you’re covered correctly?
It’s important you have enough cover to protect you in your situation, without overpaying for premiums. But how do you figure out what you need? You could talk to an insurer, however given the complexities involved and the hoops you will have to jump through if you need to make a claim, we recommend speaking to an adviser instead.
Why people like you work with us
Our clients are busy professionals, business owners and medical professionals who want to protect their hard-earned wealth. They’re astute, intelligent, and only want to work with advisers who look after their best interests.
Some of the reasons they use us rather than go direct to an insurance company include:
- Flexibility to have appointments after hours or at their workplace
- Access to multiple insurance providers
- Assistance to work out the types and amounts of cover required
- Assistance in medical underwriting
- In the event of a claim, we’ll help you ensure benefits are payable as soon as possible
Remember, action is power!
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Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.