Hands up in the air if you think insurance companies are always looking at ways to not pay out on a claim? If you did, you’re not the only one. We know how important it is to ensure that the companies that you deal with are reputable, and who honour their policies when it comes to claim time.
Wealth Protection Service
That’s why we only deal with great companies with great claims histories for their clients. We deal in peace of mind, and we are confident in giving our clients this by using strong companies with a great sense of ethics.
When it comes to insuring our clients, three separate events come to mind. Death, disability (short term or long term) and critical illness. Our role is to help you to consider the impact on your financial circumstances in the event of either, and to construct a robust platform on which you can depend upon should these unfortunate events happen to you.
Typically, the things that we consider are clearing your debts, providing a replacement income to help your family get by, providing for your children’s education needs and also any shortfall in retirement that may occur. We help choose the right structure for your life insurance policy, by explaining the difference between paying for life insurance in super, or by paying for it directly yourself.
Find out more about Insurance In Super here.
Total & Permanent Disability Insurance (or TPD)
People often think of Total & Permanent Disability as meaning that they are a quadriplegic and unable to do anything for themselves again. The reality is that there are many things that can cause a person to become totally and permanently disabled by the definition of some policies, and what might cause one person to meet the criteria of a policy A might not be applicable in policy B.
So what does it mean?
Though policies and specific definitions differ between companies, there are generally three different types and definitions of TPD Insurance:
- Any Occupation – where the life insured is deemed unable to ever work again in their current occupation, or any occupation to which they are suited to by way of education, training or experience.
- Own Occupation – where the life insured is deemed unable to ever work again in their current occupation.
- Home Duties/Non-occupational cover – where the life insured must be unable to conduct 2 of 5 activities of daily living.
Clearly, becoming disabled in this way is one of the worst events to happen from a financial perspective. We usually find that our clients still desire a similar outcome to those covered by our life insurance recommendations, but then on top of that there is a consideration for funding for miscellaneous medical expenses over and above the cover sought by life insurance.
When combined with Income Protection, this type of cover can become very effective.
Having a serious illness such as cancer, heart attack or a stroke can be an incredibly difficult time. Fortunately, you are able to insure such events and provide your family with a lump sum of money with which you can use to help pay out of pocket medical expenses, to allow people to take time off work to care for the person with the illness, or any other purpose such as providing peace of mind that your annual debt obligations are covered.
Again, not all policies are equal, with some covering many more illnesses and sometimes with the difference in cost being minimal. It pays to have somebody explain to you what the differences are between policies so that you get the cover that is most appropriate to you.
Business Expenses & Business Succession Planning
How would your business get by without a key person?
The chances are, most small businesses would struggle to be able to continue running their business the way it should do. The skills of the owner are normally essential to the proper running of the business, and losing them due to illness or injury will really hurt the ability of the business to maintain its profitability.
Business Expenses insurance covers your fixed business costs, such as rent, leases, insurance costs, utility bills, staff salary and superannuation costs. It can also cover the cost of a replacement for you, to help you recover without the stress of having to return to work.
Business Succession planning concentrates on enabling a smooth transfer of assets from one business owner to the remaining business owners in the event of death, disability or even critical illness.
Ask yourself these key questions:
- Would our business be able to continue without one of the owners?
- Who is likely to take over from one of the business owners in the event of death or disability? It could be a family member who has no experience of running your business.
- How would you afford the purchase of your business partner’s share of the company in the event of his death or disability?
There are ways of making these events more manageable, but not all are equal.
If there is one thing that we have learned, it’s that everybody thinks they are bulletproof. Unfortunately, experience has shown us that this is simply not true, and it is vital that you act sooner rather than later. We have already had people who have not been able to get cover for themselves due to something that happened between our initial consultation and their decision to take up cover for themselves.
Our Wealth Protection Services can help you get the insurance cover you need for your own set of circumstances. Talk to Andrew Dalton about this today.