IS IT TIME TO REVIEW YOUR PERSONAL INSURANCES TO PROTECT YOUR FINANCIAL POSITION?
At Orange Financial Planning, we believe now is the ideal time for a new financial year personal insurance check-up to protect everything you’ve worked hard for.
Many of us have just taken a yearly deep dive into our financial affairs making it the perfect time to review your personal insurances to protect your financial position.
Let me ask you a very important question… if something should happen to you, can you survive with your current debts and living expenses with no income up to age 65?
If the answer is no… read on!
WHY HAVE PERSONAL INSURANCE?
The aim of personal insurance should be to adequately protect your assets, clear your liabilities and protect your future lifestyle.
TAILORED PERSONAL INSURANCE
At Orange Financial Planning, we focus on explaining the different types of insurances you may require and how to structure them to obtain the most benefits, features and costs available.
You do not need to cover yourself to have the same payout as winning the lottery, but you need enough to cover your current debts and future lifestyle!
It’s a fine balance and one that takes a thorough analysis of your situation to reach the optimum outcome. Make an appointment with us today to have your situation personally reviewed.
PERSONAL INSURANCE #101
Understanding personal insurance is important when making any decisions. See below for a general outline of the different relevant terms.
Held inside Super, a Life Insurance policy pays a lump sum amount in the event of the insured’s death to a beneficiary, third party or an estate. This amount can then be used for things such as children’s education, debts and funeral expenses as well as ongoing income for the beneficiary. Term Life Insurance may also be affected within a superannuation structure.
Held outside Super, Trauma Insurance provides a lump sum payment in the event that you are diagnosed with one of a number of specified medical events. These may include events such as malignant cancer, heart attack, stroke, blindness etc. It can be taken out as a standalone policy or in conjunction with a Term Life Insurance or TPD policy. Generally, trauma cover is not available through superannuation.
Total & Permanent Disability Insurance
Held outside or inside Super, Total and Permanent Disability (TPD) provides a lump sum payment in the event of total disablement. TPD Insurance may be acquired inside or outside of a superannuation structure. It may be purchased as a standalone policy or in conjunction with a Term Life Insurance or Trauma Insurance policy. Policy holders may be able to choose an ‘any occupation’ or ‘own occupation’ definition.
To meet this definition, you must be unable to work in your usual occupation or any other occupation for which you are reasonably suited as a result of your education, experience or training.
To meet this definition, you must be unable to work in your own occupation.
Income Protection Insurance
Held outside or inside Super, Income Protection covers up to 75 percent of an insured’s income (net of business expenses) and provides a monthly benefit (up to age 70) if the insured is unable to work as a result of an illness or accident. You may also be able to include an additional benefit to cover superannuation contributions. The premiums when paid are tax deductive. The benefits when paid are taxable.
The policy will continue to be renewed (as long as premiums are continued to be paid) under the same terms and conditions regardless of any changes in health, occupation or pastimes.
To ensure that the value of benefits keep up with the cost of living, benefit amounts will be automatically increased each year on the annual review date in line with increases in the CPI (often limited to 3 percent per year).
Partial Disability Benefits
A partial disability benefit may be payable until the expiration of the benefit period, where you are able to return to work to perform all the duties of your occupation but only at a reduced capacity, earning an income less that your pre-disability income.
PROTECT EVERYTHING YOU’VE WORKED HARD FOR – SCHEDULE YOUR 30 OR 60 MINUTE MEETING TODAY!
Now you have begun the process of seriously thinking about your big picture and protecting everything you have worked hard for – act on it! Give us a call at Orange Financial Planning TODAY to schedule your 30 or 60 minute meeting!
Looking forward to helping you reach your goals and protect your financial position in the new financial year!
Contact us today on (02) 5310 4477 or drop us a line HERE!
See here for more information on Personal Insurance…
Mitchell Advice Pty Ltd ABN 44 625 356 872 t/as Orange Financial Planning is a Corporate Authorised Representative of Synchron AFS License No 243313. Unless specifically indicated, the information contained is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek personal advice from a financial adviser
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