Wealth Protection

It is vitally important to protect your current wealth while creating additional wealth for your future.

Adding extra floors/layers to your wealth building is potentially a financial disaster if their wealth foundation is not secure. Your wealth foundation is your current assets and your ability to earn an income to support your current lifestyle and current/future investments.

Death or temporary/permanent disability or trauma (cancer/heart attack stroke, etc) obviously can eliminate or dramatically reduce your income. In the absence of wealth protection (life, disability, trauma cover) your lifestyle will suffer, your family will suffer financially and your investments may need to be hastily liquidated perhaps at a loss. Your future plans, dreams and goals could be shattered.

Adequate Wealth protection particularly death and disability cover to replace lost income can usually be put in place both tax effectively and at an easily affordable cost to secure both peace of mind and your financial future for you and your family.

• Life Insurance & Total and Permanent Disablement Cover
• Income Protection
• Trauma Insurance
• Business Expense Protection

LIFE INSURANCE & TOTAL AND PERMANENT DISABLEMENT COVER

Life cover pays a lump sum if you die or become terminally ill. The lump sum can clear any outstanding debts and/or provide an ongoing income stream when invested.

You will probably be surprised at the relatively low cost of life cover and how affordable it is to protect you and your family.

Cancer, heart attack, stroke or a fatal accident can arise at any time. It makes sense to insure you and your family’s lifestyle. We can help you determine the level of cover you need and using a computer program the best value for money option from a number of Australia’s leading life companies.

Total and Permanent Disablement cover (T.P.D.) will provide a lump sum if you are classified according to the definition as unlikely to ever be able to return to work as a result of suffering either a sickness or injury. You can have either an any occupation, own occupation, homemaker or modified definition.

We recommend own occupation cover where it is available to make it more likely that the definition is satisfied and a claim paid.

We can advise on the advantages and disadvantages of having this cover, i.e. T.P.D. inside or outside Superannuation and once again the best value for money option from a number of Australian leading life companies.

INCOME PROTECTION

Your capacity to earn an income is generally seen as your biggest financial asset and the key factor determining your lifestyle. It is extremely important that this asset is protected.

For example, if you are 45 earning $50,000 p.a. between now and 65, you will earn $1 million of today’s money.

Income Protection will pay you up to 75% of your income if you are off work due to an illness or injury. Usually income is payable after a preset waiting period of your choosing such as 14, 30, 60 or 90 days.

The income will continue to be paid until you are able to return to work or until the benefit period you choose in your policy, i.e. 2 year, 5 year or even up to age 65 expires.

You can choose between an agreed monthly benefit or an indemnity cover. We can explain their difference and advise you accordingly.

Premiums are usually tax deductible and the monthly benefit paid taxable.

Sick leave and annual leave entitlements maybe taken into account to determine the appropriate waiting period.

Once again we offer policies from a number of Australia’s leading life companies.

Definitions and additional benefits vary between the companies and one company may suit your circumstances better than the others.

TRAUMA INSURANCE

Trauma insurance pays a lump sum on diagnosis of one of a number of specified conditions. The most common claims are cancer, heart attack, stroke and permanent disablement.

The lump sum can be used in any way, such as to pay for out of pocket hospital, medical or pharmaceutical bills, clear debts or pay living expenses, etc. Usually you need to survive 14 days from diagnosis. Trauma insurance can help lessen the financial stress and provide funds for alternative or overseas treatments which may be very expensive but potentially lifesaving.

BUSINESS EXPENSE AND PROTECTION

Business expenses are designed to cover the fixed expenses of your business if you the owner are unable to work due to illness or injury. It is usually a supplementary policy to income protection for someone running their own business which is dependent on their personal exertion to generate the business income.

The business expenses covered include rent or loan interest on a business premises, general insurance of the business, business leases, regular advertising costs, salaries of non-income generating employees, etc.

If these expenses are not covered the business could fail or else cause serious financial hardship to the disabled business owner.

The benefit period is 12 months usually and benefits are payable after an initially waiting period usually 30 days.

The amount paid is a pre-set amount as a maximum but may be less depending on the business expenses incurred that month.

Business expenses cover like income protection is tax deductible.