Why is Personal Insurance Important?
Let’s be honest, this is often considered the most boring part. But a Financial Plan without the right insurance is akin to a living in a house of cards. If you are taking on a significant debt to buy a house, or your household is dependent on your income(s) to cover living costs, appropriate Life, TPD, Income Protection and Trauma (Critical Illness) Insurance is absolutely critical (no pun intended). It can mean settling a debt if a partner passes away, or just being able to maintain your standard of living if one of you gets seriously ill, or injured.
How We Help
We work with our clients to find the balance between comprehensive coverage and affordable and tax effective premiums. Best part, a large portion of your Insurance premiums can be covered from your super.
The common types of personal insurances that we assist our clients with are:
- Life Insurance – a lump sum payment if you are diagnosed with a Terminal Illness or pass away.
- Total and Permanent Disability Insurance – cover for if you are totally and permanently disabled and no longer able to work in your Own Occupation, or Any Occupation that you are suited to by prior training, education or experience.
- Income Protection – in our view the most important and usually the first one people will cancel as cover gets more expensive as they get older. Income Protection insurance pays you up to 70% of your taxable income/salary plus superannuation contributions if you are unable to work for an extended period due to illness or injury. If clients have good leave balances and/or savings we can extend what is called the waiting period which can make cover more affordable. We typically prefer benefit periods through to age 65 but can discuss shorter benefit periods where clients are more price sensitive, or clients are in a position to retire well before age 65. Having the right Income Protection can be the difference between keeping or having to sell the family home or Investment Property or other investments which can make a huge difference to your families wealth.
- Trauma or Critical Illness - This pays a lump sum amount if you suffer a serious illness or injury such as Cancer, Stroke, Heart Attack, Parkinsons, MS or around 40 other traumatic events. In the event a client is diagnosed with one of these conditions, trauma (critical Illness) cover pays a lump some that can be used to cover medical expenses and top up Income Protection benefits which are only up to 70% of a clients salary. Having the right cover in place allows clients to focus on recovery rather than the financial impact on their lives when the worst happens.
It is also not about setting and forgetting. It is important to regularly review personal Insurance cover every 3-4 years as debts are paid, kids get older or other trigger events happen such as buying/selling property, receiving an inheritance or joining/splitting with a partner.
While we are not licensed to recommend Private Health Insurance we can talk about the Pro’s and Con’s from a cashflow/taxation as well as lifestyle perspective and how it may impact your financial plans going forward. If you would like to arrange a review of you cover we can assist by putting you in touch with our referral partner.
For Business Owners, we can also assist with Keyperson Insurance, Buy/Sell cover and Business Expenses cover. For any other General Insurance needs we can refer you to our trusted General Insurance Broker for your Public Liability, Professional Indemnity, Plant and Equipment, Property and Cyber Security Needs.
What Else We Do
Call Mark
07 3524 8505
Email Mark
hello@thebaysideinvestor.com.au
Visit Mark
Ormiston & Coorparoo (By Appointment) 26 Raby Esplanade, Ormiston, QLD 4160
