Insurances
There are numerous risks associated with the lives we lead and everyone has unique requirements relating to their specific risk profile.
These needs may differ to those of their peers. We all face some form of risk everyday, whether it is driving our car or facing retrenchment.
It is usually possible to transfer the potential losses through such risks to insurance companies.
We can provide advice and risk management planning insurance for: -
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Insurance for loss of life |
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Insurance against the loss on income and expenses relating to a major Trauma |
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Insurance for Total and Permanent Disability |
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Insurance of income due to sickness of injury |
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Insurance for your business against loss |
We all assume that it won’t happen to us, however how many people do you know that have been financially affected by the unexpected death of a family member?
Life Insurance
Life insurance pays a lump sum benefit on the death of the life insured. The level of cover is dependant on your specific needs and should be sufficient to cover: -
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The repayment of your debts |
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Any capital gains tax liabilities |
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Your dependants from the loss of their bread winner or income provider |
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Funeral costs, and |
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To provide sufficient funds to secure a business |
A life insurance policy may also be linked to your superannuation fund resulting in the premiums being tax deductible.
Life insurance is invaluable 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 lump sum benefit paid to the insured should they suffer a major health trauma, there are specific policies which can be tailored to suit your insurance needs based on risk.
A question to ask yourself is; could you and your family afford to cover the medical costs associated with the treatment of a major medical Trauma?
If a person suffers a medical trauma, term life insurance won't help as the person is still alive.
Suppose a person has a mild heart attack and is seriously ill but is able to return to work after two months.
Will he or she be as productive as before or stand the stress associated with working as hard?
Policies like income protection insurance and TPD insurance may not be suitable since payouts depend on the effect of the event after it has occurred. What is needed is a cover like trauma insurance which pays out on the actual occurrence of the incident.
The function of trauma insurance 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 |
Trauma protection insurance should be seriously considered for: -
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Those with a mortgage or other debt, a family and associated responsibilities |
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Single people wishing to maintain independence |
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A homemaker who would usually perform the duties of a housekeeper or nanny |
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Those who may require cash support for their business while they take on the role of carer |
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Those who would like to be able to choose private medical care rather than remain on a waiting list |
Total and permanent Disablement Insurance
Total and Permanent Disablement insurance is offered as a stand alone benefit by a limited number of insurers, but is usually an option on a term life cover insurance policy.
It aims to provide a lump sum of money should a person suffer an illness or injury which totally and permanently incapacitates them from working.
This usually applies to any occupation for which they are reasonably suited by education, training or experience.
The function of Total and Permanent Disablement insurance is to: -
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cover the mortgage or pay other debts |
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protect business against loss of sales and profits |
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maintain business lines of credit |
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to provide an income stream |
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to provide money for home modification i.e. disability access |
Total and Permanent Disability Insurance is extremely valuable to: -
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Younger people who would wish to maintain their independence |
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Those with no income protection insurance |
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Those with dependants |
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Business partners, and |
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Businesses with key employees |
Income Protection Insurance
Income Protection Insurance is designed to pay a regular income benefit if the insured suffers a loss of income as a result of sickness or injury.
You need to ask yourself if you have sufficient cash reserves to cover all of your existing monthly commitments should you fall ill or suffer an injury resulting in the permanent or partial loss of income.
Insurance companies will generally pay benefits to 75% of your current income as monthly benefit payments.
It is also possible to cover the shortfall utilising additional Trauma insurance cover. We can assist you in determining you actual requirements over the short, medium and long term, using budgeting tools specific to you.
It is also possible to design an income protection insurance policy to cover you should you be able to perform all of your duties, but only for a limited number of hours per week.
Business Expenses Insurance
Business expenses insurance covers your fixed business expenses if you are disabled and therefore suffering a loss of income as a result.
The benefit payment through the insurance policy will allow you to keep the business operating and cover the fixed financial commitments such as your leasing costs, business loan repayments, utilities and insurances.
It will also allow you to continue paying salaries to your staff.
How much impact would a loss of income have on your staff, and more importantly your family?
For most of us it would be disastrous.
Let us develop a suitable Risk management plan through the appropriate insurance policy to responsibly protect you and your family against hardship.
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