Wealth Creation is part of your plan that helps you build assets.
Wealth Protection helps you protect your ability to create this wealth.
Your wealth creation plan will be based on the assumption you will stay healthy and live to a certain age, however there may be unforeseen circumstances which can impact your plans. Risk Insurance may assist you to continue meeting your financial goals if you lose your ability to work or suffer a serious illness.
Life Insurance
Life Insurance can provide financial protection for your dependents if you die. In deciding how much cover you need it's important to consider:
- Your current assets and liabilities [especially the amount of your current mortgage]
- How much would you need to maintain your standard of living
Life Insurance can be used to repay debts, school fees and cover your dependents for loss of income.
TPD - Total and Permanent Disablement
Total and Permanent Disablement is additional to life insurance cover. It pays a lump sum if you can't ever work again because of illness or injury.
Income Protection
This policy generally pays you up to 75% of your monthly income if you can't work due to illness or injury.
The premiums you pay on this type of policy are tax deductible. However any payments you receive under this policy are classed as assessable income for tax purposes.
Trauma Insurance
Trauma Insurance pays a lump sum if you suffer a specified traumatic event such as a diagnosis of cancer or coronary disease. The benefit is paid when the diagnosis is confirmed.
This is important because it means you and your family will receive a lump sum that may be used to pay for additional medical care or to pay off the mortgage to relieve financial pressure.
Business Insurance
Whilst in business you need protection that covers your assets, revenue and ownership. Insuring key people in your business that generate profit is important because material things can always be replaced but a key person's death or disability can result in a financial loss. This allows the business to maintain its value and continue operating.
