Risk Management
Every working Australian has a 1 in 3 chance of becoming disabled for more than 3 months before turning age 65. From the age of 34 to age 64, 36% of all males & 23% of all females will suffer from a critical illness.
Maintaining Current Standard of Living
In the event of death or disability to your total income would cease or be significantly reduced. In such a situation, this reduced level of income, and perhaps an increased level of expenses, for example, medical costs, can lead to additional financial difficulties. In the above instances Life and Total and Permanent Disablement cover can provide a lump sum that can be used to supplement income, as well as meet any additional costs that may arise, such as the employment of a care giver to any dependent children. Critical Illness Cover would also be useful, as the lump sum received can be used to pay for additional medical treatment needed, as well as other costs that may arise.
Constructing an Appropriate Personal Risk Management Plan
There are many different aspects to insurance and it is best to tailor a package that suits your needs as well as your budget. We have outlined below the way in which the various insurance offerings can be applied according to your specific areas of concern
Eliminating Your Debt
Often a loan document will specify that the debt is to be repaid immediately upon the death or disability of the owner. In this situation you can use Life, Total and Permanent Disablement, and Critical Illness Cover, to at least ensure your total debts can be repaid from the insurance proceeds.
Reducing the Impact of Loss of Income Due to Sickness or Injury
In the event that you were to suffer injury or a serious medical condition, the ability to meet day-to-day living needs can be adversely affected. Even if the illness or disability suffered is only temporary, your long-term plans can be seriously impacted. Income Protection is an effective tool that can be utilised in conjunction with other insurance in such a situation.
Estate Equalisation
You would like to ensure that in the event of your death, your estate will have the funds necessary to make the equitable distribution of your assets that you would prefer. Life Insurance can be an effective tool to help you achieve these goals.
Keeping Your Business
Whilst your personal Income Protection and other insurances may be able to assist you, they should not be relied on completely to meet the added financial pressure in both your personal and business matters. Business Expenses Insurance can help to meet your regular and ongoing business overhead costs. Furthermore, Key Person Insurance can be implemented to minimise the impact the loss of a prominent staff member can have on your business. Lastly, tools such as buy-sell agreements, funded by insurance, can be a cost-effective method to ensure the continuation of your business with minimal disruption, in the event of your or your business partner's death or disablement.
More Information
If you would like more information on income protection, sickness and accident or life insurance please contact our office today or email nick@mwplanning.com.au
| Product Type | Benefit Type | Important Factors |
| Death Cover | Lump Sum |
|
| Total & Permanent Disablement | Lump Sum |
|
| Trauma | Lump Sum |
|
| Income Protection | Monthly Payment |
|
| Business Expenses | Monthly Payment |
|
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