Personal Insurance
It’s worth remembering that no matter how much expert advice you receive or how well you manage your finances there is always a risk that you could suffer an early death or serious illness or injury. Where that leaves you and your loved ones in the future depends on the wealth protection strategy you have in place.
Risks you could face in the future may include:
- Emotional, physical or mental trauma
- Death or serious illness
- Loss of income due to temporary or permanent incapacity
Your financial plan should include a strategy to minimise risks that could jeopardise both your present and future plans. In simple terms, if you cannot afford to lose something then you should try to protect your exposure. Insurance can provide a cost-effective protection mechanism.
This may take a combination of personal, general and health insurance policies. There are many different aspects to insurance and it is best to tailor a package that suits your needs as well as your budget.
Life Insurance: The loss of a loved one is hard enough to deal with let alone having to worry about finances. Life insurance is a way of protecting your family‘s financial future in the event of your death.
Total Permanent Disability (TPD) Insurance: Pays a lump sum if the insured becomes totally and permanently disabled due to illness or injury. Definitions vary among insurers, covering either own occupation or any occupation.
Trauma Insurance (Critical Illness):Provides a lump sum for critical illnesses (e.g., cancer, heart conditions, stroke). Not related to traumatic events but specific illnesses.
Income Protection Insurance: Monthly benefit paid to replace income if unable to work due to illness or injury. Typically covers 70% of normal income, capped at a maximum amount.