Protecting you and your family, wealth protection and insurance such as Death, Total and Permanent Disability, Trauma and Income Protection is essential.
Things don’t always go to plan. We work with you to assess the risks unique to your situation. Then to build your wealth protection and insurance plan to protect what’s most important to you.
How can you sensibly and cost-effectively protect the assets that matter most? Most importantly, your life, your income potential and your health. So, how much insurance would be enough?
What are the many questions that should be addressed when it comes to wealth protection and insurance.
How much is enough?
What type or combination of insurances should I use?
How do I make the cost sustainable over the time frame I will need insurance?
What tax structure should I have my insurance in?
Protecting yourself and your family from life’s unexpected illnesses, injuries and disasters should be a priority in life. Sadly, for most Australian’s, they are under insured. Insurance is not as simple as some of the advertising on television makes out.
What does Wealth Protection and Insurance cover?
Everyone realises the importance of insuring their car and home. However, many seem to overlook the importance of insuring their means to make a living and maintain their lifestyle. In fact, most are under insured for their individual needs and often rely heavily on automatic insurance cover. This type of insurance is usually given to new members of a super fund. Many new clients we meet often tell us they have insurance as part of their super fund. They assume that it will meet their needs and be available if they ever need to make a claim. As as result, they are unaware of what they really have. Therefore, just assume that all super funds incorporated adequate insurance cover such as life, TPD and income protection, but this is often not the case.
So why shouldn’t you just rely on and what is automatic cover?
Automatic cover is insurance that you never applied for yourself, or completed an underwriting assessment to acquire. Not all super funds give you automatic cover. So never assume you have it. Automatic cover is typically included with a new super fund account. Normally as you join through a new employer when you sign up as a new member.
In the event that you ever needed to make a claim, the difference between automatic cover and underwritten cover can be poles apart. The main reason is because the automatic cover was given to individuals without assessing their current health. More importantly, their medical history, family history, medications, or previous injuries before it was issued.
The underwriting assessment is done at the time of claim, which can present a huge range of complications and additional stress to the insured person and their family. A time when they are most vulnerable and in need of the insured amount. In some cases, this can result in a claim being declined. Consequently, as the automatic cover provider wouldn’t have accepted the policy, if they had known about the conditions when the insurance was first issued.
Most importantly, an insurance policy which has gone through an underwriting assessment at the time of application and issued to the insured person cannot be altered by the insurer once it’s in force. The insured amount must be paid as long as the definitions of the policy are met. As long as you continue to service the premiums, your cover will be in place no matter what surprises or health concerns may happen in the future.
Is the wealth protection and insurance cover you currently have enough?
The other issue with automatic cover is the one-size-fits-all approach. That doesn’t take any of your personal circumstances into consideration.
Automatic cover are often issued at a couple hundred thousand dollars of life and TPD insurance. With maybe a few thousand dollars a month in income protection. Besides that, will usually pay a benefit for a maximum of two years.
Here’s the problem. Everyone earns different salaries and carry different amounts of debt. Which in turn, alters the amount of cover needed. If someone couldn’t work ever again due to an illness or accident and were expecting to work another 25 years. The policies would maybe only replace their income for a maximum of 2 years. What would that person do for the remaining 23 years of lost income? Would one wage cover everything? Or would the family (or spouse) be forced to completely change their way of life? This situation may seem unlikely, but it happens every day to people who think they are healthy.
Can a quality policy be underwritten and still funded by super?
Yes. Policies which are underwritten at the time of application inside super can. Therefore you can also opt for more comprehensive policies which can be mostly funded by super. With a small portion of the premium paid outside of super for the comprehensive extras (as per current legislation).
Want to know more about quality Wealth Protection and Insurance?
Seeking advice about what cover will best suit your needs is very important. However, not all policies are equal. As an independent adviser, we can help you identify what level of cover meets your individual needs. We will find a solution which fits your budget. Our advice services will look at multiple quality providers which will give you confidence in knowing the right cover is in place. Should you need to ever make a claim.
Contact us today for a free financial health check which will examine your current financial situation and ensure your wealth protection and insurance needs are being met.
The Complex Made Simple when it comes to Wealth Protection and Insurance..
Our role is to guide you through the challenges and opportunities of the modern financial world. Presenting complex information in easy-to-understand ways. So you feel confident in your decisions.
Where appropriate, this can be achieved inside super, for ease of personal cashflow. Tax concessions may apply whether inside or outside super.
Business Protection and Insurance
If you own a business, this is just as important! We can also protect your business through insurances. Such as loan protection and business overheads. Similarly, protection through Buy/Sell agreements and funding, as well as Key Person agreements. Tax concessions may also apply.
FMG Wealth Strategists – Financial Planning For Life, has been assisting clients find solutions to questions in this area for a long time. It is about having a strategy in relation to your business insurances. Most importantly, in context with your other circumstances and reviewing the strategy as your circumstances change. Call us for an appointment to help you get a strategy in place today.
Already have insurance? Find out how much you could save with our independent services.
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Wealth Protection and Insurance