Life insurance
The financial impact of illness and injury can be alleviated by taking out adequate insurance cover. Here are the different types of cover explained:
Life Insurance
In the event of your untimely death proceeds would be used to:
Discharge/Partly discharge mortgage and other debt.
Provide a future income for the Family for a period of time.
Provide an emergency fund pending proceeds from an estate.
Trauma Insurance
In the event of you suffering a Trauma (i.e. Heart Attack, Cancer, Stroke etc. Most Trauma policies cover ±30 events) you would receive proceeds to cover:
Discharge/Partly discharge mortgage and other debt.
Cover the additional medical costs you may incur.
Total and Permanent Disability (TPD) Cover
This type of insurance pays out a lump sum if you are totally and permanently disabled. This is a common type of insurance cover which is often included with superannuation. Be aware though that just having TPD cover alone does not cover you unless you are totally and permanently disabled. If you are ill or injured and unable to work but not completely disabled, you will be ineligible for any benefit., as most Disability Cover through Superannuation has an Any Occupation definition. It is possible to take out Disability Cover outside of Superannuation with an Own Occupation definition which is more desirable.
Income Protection
Income Protection provides up to 75% of your monthly income if you are unable to work due to illness or injury. The value of your future Income Stream to retirement is most likely your most valuable asset and it is important to ensure and protect this future income stream. The cost of this cover is not expensive and tax deductible.
Most of us when we’re fit and healthy don’t give our health a second thought. We are lulled into a false sense of security that illness and injury won’t happen to us. But unfortunately, sickness and injury can strike any of us at any time, and this can impact not only ourselves but our families and loved ones.
A few sobering statistics
While you may think that you don’t need personal insurance, here are a few worrying statistics that might make you reconsider:
For every 1 home lost due to fire, 4 homes are lost due to death and 48 are lost due to being unable to pay a mortgage from disability or illness.
60% of Australian families with dependent children don’t have sufficient insurance to cover their daily expenses for more than one year if the main breadwinner of the household was unable to work.
In the event of permanent disability or death, 80% of Australian families would receive an insurance payout that would only last 5 years.
A recent study conducted by the Investment and Financial Services Association of Australia (IFSA) showed that Australians with dependents were under insured by $1.37 trillion.
Half of all Australians will be diagnosed with some type of cancer before age 85.
Statistically, Australia is one of the most under insured countries in the world.
For a no charge, no obligation review of your current Risk Insurance Portfolio, please contact Gordon Hatch on (02) 8969-6970 or email gordon@taurusfinancial.com.au .
The information contained in this newsletter is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided. Taurus Financial Services Pty Ltd its directors or staff, nor its employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
Taurus Financial Services Pty Ltd is an Authorised Representative of SECURITOR Financial Group and provides Financial Planning Services in respect of Shares, Managed Investments, Superannuation and Personal Risk Insurance. SECURITOR is only responsible for the services provided by your Adviser through Taurus Financial Services Pty Ltd. You may also receive services from Taurus Mortgage Services Pty Ltd for Mortgage Origination and Debt Re-Financing, and from Taurus Professional Services Pty Ltd in respect of Banking facilities, Taxation, Estate Planning and Migration Services. Taurus Accounting Services Pty Ltd in respect of Accounting and Taxation Services. Taurus Business Partners in respect of Accounting and Taxation Services. Taurus Migration Consultants Pty Ltd in respect of Migration Services and Hatch & Associates Pty Ltd in respect of Legal Services including Estate Planning and Conveyancing. SECURITOR is not responsible for advice provided by your Adviser through Taurus Mortgage Services Pty Ltd, Taurus Professional Services Pty Ltd, Taurus Accounting Services Pty Ltd, Taurus Business Partners, Taurus Migration Consultants Pty Ltd, Hatch & Associates Pty Ltd or any other company.