Personal Insurance – Expert Financial Advisory Geelong l Canny Group
How are you going to protect the biggest asset you see in the mirror every day? Do you ever stop to think about what you would do if you were suddenly unable to produce an income? You are your biggest asset and your ability to earn an income all depends on you – the person you see in the mirror every day! We want you to know all of your options and we also want you to know that we are here to help you through, what can feel like a jungle of personal insurance options! Introducing, Personal Insurance – Expert Financial Advisory Geelong l Canny Group.
Financial worry is the leading cause of stress among Australian’s and that’s while in the full working capacity to earn an income. Statistics suggest that most of us put our ability to survive on zero income at less than a month – so why don’t we worry more about the person we see in the mirror every day?
We talk freely of difference insurances to protect assets such as;
- Car insurance
- Private health insurance
- Home and contents insurance
- Phone insurance
And that’s just naming a few, but when it comes to insuring ourselves, why are we not putting ourselves first? Who is going to pay the premiums for all these insurances if you were unable to earn your weekly pay packet? Not to mention all of the costs associated with these assets and living ‘The Great Australian Dream’?
While thinking about becoming seriously unwell or sustaining a life altering injury is not a a great thought, the harsh and honest realist is that it can and does happen! Planning for the ‘what if’ has the ability to provide a silver lining in what could be a life changing situation.
OK I’M LISTENING… So, what is Personal Insurance?
There are four main types of personal insurance;
- Life Insurance
- Total + Permanent Disablement (TPD)
- Income Protection
- Trauma Cover
You may already be aware that these are four main types of personal insurance, but did you know the leading causes of claims?
I THINK I GET IT… but why do I need Personal Insurance?
Even in our 20’s when you’re young, free and living life one day at a time, most likely with minimal responsibilities, having some type of personal insurance in place is to pay for your lifestyle and/or outstanding debts may be a better option than having to rely on and placing the financial strain on someone else like an older sibling or in most cases, good old mum and dad!
With the above in mind, do you think you could afford to maintain your currently lifestyle if one of those were to happen to you as well as the costs associated with your recovery?
It’s more common today for our parents to be thinking and somewhat planning for a situation that would include their child/children becoming sick or injured and unable to work for a period of time, sometimes an extended period of time. So often now when our parents should be thinking and planning for (if they’re not already enjoying) their own retirement, parents are having to take on financial responsibility of their children who haven’t protected themselves. Having a conversation about personal insurance may prove to be an economical one to encourage with them!
Can you afford to maintain your currently lifestyle as well as the costs associated with your recovery? What financial impact would your inability to bring home your pay each week or each fortnight have on you and your family or your personal lifestyle choices if something happened to you?
BREAK IT DOWN FOR ME… Personal Insurance-style!
1. LIFE INSURANCE
In the event of your death or if you should be diagnosed with a terminal illness and have less than 12 months to live, life insurance policy pays an agreed amount of money to your nominated beneficiaries.
*Life insurance can be help inside or outside of superannuation
2. TOTAL + PERMANENT DISABLEMENT (TPD)
Total + Permanent Disablement (TPD) covers you in the even that you become totally and permanently disabled and deemed never able to return to work. TPD policies are typically bundled with Life Insurance but can be purchased as a standalone product.
*Total + Permanent Disablement can be held inside or outside of superannuation.
3. INCOME PROTECTION
Income Protection is designed to help with the cost of maintaining the household whilst you focus on your recovery. This specific type of insurance can provide you with up to 75% of your regular income until you are able to return to work. The premium is based on your occupation, the timeframe you are prepared to wait before the benefit is paid, post the incident, and the duration of the benefit period.
*Income Protection can be held either inside or outside of superannuation. Policies held outside of superannuation enable the policy owner to claim a tax deduction on the premium.
4. TRAUMA COVER
Trauma Cover pays an agreed lump sum should be become critically ill or injured. Claims are often processed quickly without the worry of waiting period. The purpose of Trauma Cover is to help you make the necessary changes to your lifestyle in an effort to aid your recovery. This could be anything from cutting back on time at work, to paying for treatment, or making adjustments to your home. Premiums vary depending on the amount and type of trauma even cover you choose.
*Trauma Cover cannot be held through superannuation, but can be bundled with other policies held outside, such as Life Insurance.
RIGHTEO THEN… When should I get Personal Insurance?
Personal Insurance is an individualised insurance and it is tailored to you and your circumstances. Knowing what type of policy would be most beneficial, the benefit amount to have and the best provider for you and your circumstances, are all factors that we as your financial advisors will work out for you.
When giving consideration to personal insurance, it’s important to think about a few things, including;
- What would you do if you became sick or injured and were no longer able to earn an income?
- Could you honestly, afford your lifestyle?
- Would you be able to maintain the repayments on any debts, loads, direct debit payments you currently have?
We conduct a risk needs analysis and tailor a personal insurance package specifically to your circumstances and will be there to guide you through the entire process.
We have a team dedicated to insurance and protection so that you can put you and your family out of harms way and ensure you have the right protection in place, should you need it! We are more than just an advisory firm, we are here to ensure you set and achieve your financial goals with tailored financial advice.
If you would like more information or to schedule an appointment, please call our office on 03 5278 9500 or send an enquiry.