Personal (Risk) Insurance
Insurance is often surprisingly affordable and a well-chosen plan provides you with the peace of mind that comes with knowing you and your family is financially protected, should the worst occur.
There are a number of different types of cover available as outlined below. It is important to choose both the type and level of cover that is right for both you and your family’s needs.
The role of your advisor is to make recommendation/s based on your personal needs and circumstances.
The factors that are normally take into account, are:
- any debts you have, such as a mortgage or credit card debts
- the number of persons financially dependent on you and their age
- your family’s day to day living costs
- whether funds are required to cover future expenditure, such as your children’s education
- your current income and level of personal savings
Your Advisor can recommend the type and level of insurance you should obtain based on your personal needs and circumstances.
Both you and your family’s needs will change over time. As a good practice it is recommended you undertake a regular review by your advisor to keep your cover up to date and adequate for your needs, at that time.
Common Types of Insurance
1. Term Life Insurance
Term Life Insurance provides a lump sum payment if you pass away or are diagnosed with a terminal illness. This benefit is designed to help provide your family with financial security and ideally will be sufficient to pay off any existing debts as well as providing funds to cover ongoing living expenses and other expenditure that will be incurred by your family and loved ones into the future.
2. Total and Permanent Disablement
Total and Permanent Disablement Insurance (TPD) provides you with a lump sum payment in the event that you suffer an injury or illness that is serious enough to result in you being unable to return to work. The benefit is often used to repay existing debts, provide funds to help replace your loss of income and cover any potential medical or rehabilitation expenses.
3. Critical Illness/Trauma
Trauma Insurance provides a lump sum payment should you suffer any one of a number of specified serious injuries or illnesses, such as heart attack, cancer or stroke. The benefit is typically used to cover medical and rehabilitation expenses and to provide a financial buffer, but can also be used to reduce debt, cover lost income or allow you to concentrate on your recovery.
4. Income Protection
Income Protection provides you with a regular monthly benefit designed to help cover your loss of income in the event you become sick or injured and are unable to work for an extended period. There are different ways to structure your income protection policy and you will have to choose the level of your benefit as well as the waiting period and benefit period.
If you don’t have an advisor and/or would like to discuss these products
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Praveen Raghubar, Representative N0. 3306628 is an Authorised Representative of Spectrum Wealth Advisers Pty Ltd (‘SWA’) ABN 57 134 661 706, AFS License N0. 334400. The Authorised Representative is authorised to provide financial product advice as set out in SWA License conditions listed on ASIC website, until updated or terminated by SWA.