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Risk insurance is not often a consideration of most people, but when you think about it the lives we lead does place us at risk from the simplest things like having a car accident or a workplace accident.
These things do happen and are an everyday part of life and the risk associated simply with living, I'm sure that if you think about it there is someone you know who has been affected in some way by an accident or trauma of some sort.
A more common form of risk is that of retrenchment which is a reality in the world today, again you or someone you know will most likely have been affected by this and if they have the right risk insurance in place the impact is dramatically lessened.
This is where insurance, namely risk insurance can help not only you but your immediate family in many way.
Our ability to offer a broad range of options from a number of insurance providers allows us to provide you with the below options:
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Life Insurance |
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Trauma Insurance |
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TPD or Total and Permanent Disability Insurance |
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Income Protection Insurance |
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Business Insurance |
The assumption is that it won't happen to us, or things like that only happen to other people.
This is where you can get caught out by not having the appropriate insurance in place if the need ever arises.
Even if the need never arises it is the peace of mind that having the right risk insurance in place provides you and your family which is worth it.
Life Insurance
Life insurance is one of the more common polices which is taken out and it provides your nominated beneficiary with a lump sum pay out.
The premium and pay out figure are determined by you when you initially apply and this is based on your level of health, any pre existing ailments and the amount of cover you wish to nominate.
A life insurance policy can allow the following number of items to be taken care of in the unfortunate event of the policy holders death:
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Repayment of any existing debts |
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Payment of capital gains tax liabilities |
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Financial protection of the family unit due to the loss of the main income earner |
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Funeral expenses |
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To provide sufficient funds to secure an existing business by pay out of the business debts
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There are some options for life insurance to be linked in with your superannuation policy where the premium may be tax deductible.
Here are some reasons that life insurance may be important to you, if you:
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Are the main provider for your family |
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Have personal debt that will be repaid upon your death |
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Are the full time home maker and parent |
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Are the key person within a business |
Trauma Insurance
Trauma insurance is a type of policy which can provide you with a lump sum pay out in the event you suffer trauma, the type of trauma can cover a wide range of circumstances and there is a policy out there which can be tailored to suit your individual needs.
Here are some key points about why trauma insurance is important:
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Could you or your family afford to cover the associated costs of major trauma which requires intense medical treatment? |
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Suppose you have a mild heart attack and are seriously ill but you're able to return to work after two months, trauma insurance can help you in this instance |
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If you suffer a medical trauma, your life insurance won't assist as you are still living |
Other policies such as income protection or TPD insurance may not suit these instances as the payout on the policy depends on the effect of the event after the incident whereas trauma insurance can provide payment on the actual occurrence of the incident.
The reason for trauma insurance cover is to:
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pay for specialist or international medical attention |
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cover the cost of modifications to the home, and |
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Avoid financial stress in recuperation (debts, etc) |
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Assist with the gap between your current income and that benefit payable from your Income Protection Insurance |
Here are some reasons that trauma insurance should be seriously considered:
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Those with a home loan or other debts, a family and associated financial responsibilities |
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People simply wanting to maintain independence after an incident |
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A home based person who would normally perform the duties of a housekeeper or parent/carer |
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Those who may need financial support for their business operation during a time they are required by their partner or family member as a carer |
Total and permanent Disability Insurance
TPD insurance is provided as a stand alone policy by a handful of insurance companies, although it is sometimes an option on a term life cover insurance policy.
TPD insurance is in place to assist people who have suffered a serious injury and become totally or permanently disabled and are therefore unable to return to work or normal duties.
Disablement is not necessarily due to a physical accident and can include serious health issues such as cancer, major stroke and so on.
Why you would take out a Total and Permanent Disability insurance policy would be to:
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Cover any home loan or other ongoing debts |
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Protect your business against loss of profits |
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Provide an income stream where your normal income is no longer there |
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Make the necessary modification to a home if wheelchair access is required after becoming disabled |
TPD Insurance is an invaluable policy for:
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Young people who want to maintain their independence if an unfortunate event were to occur |
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People with no income protection insurance |
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People who have dependant children |
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Key personnel within a business |
Income Protection Insurance
An income protection insurance policy is there to provide you with a regular income stream if you suffer a loss as a result of illness of injury which in turn prevents you from working your regular job.
A key question to ask yourself is, "Do I have substantial cash resources to cover my existing liabilities for a period of time if I'm unable to work?"
More often than not the answer will be no. Insurance companies will generally pay up to 75% of your previous income level to help you through the difficult stages of life.
Trauma insurance can be tailored in such a way as to provide you with an income to a certain level even if you are able to work but only for a limited amount of hours per week.
Business Insurance
This type of insurance policy is becoming more popular as it provides a business operator or owner insurance cover to pay for fixed business expenses in the event that you are unable to perform your normal duties.
This could be because of illness or injury and is an invaluable policy for business owners and is very popular when there is a partnership in place.
What this policy will do is allow your business to continue to operate in your absence from a financial perspective by providing coverage for your fixed expenses such as:
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Leasing costs of equipment or vehicles |
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Business loan repayments i.e. overdraft, commercial loan |
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Payment of utilities and insurance policies i.e. public liability, contents insurance and so on |
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Salaries for any staff you have on the payroll |
Think about this, what would happen to you or the people that depend on you if you were to lose your ability to generate income?
The result of this could be catastrophic and the simple fact is that an insurance policy like this one would help you avoid unnecessary heartache.
Insurance Summary
In essence there a number of reasons to take out an insurance policy, what type of insurance it is and the cover provided can be tailored to suit you, your family, your budget and your lifestyle.
Why not contact us and have a chat to a consultant about your insurance options or we can arrange for a qualified financial planner to have an in depth discussion with you at a time that suits.
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