Personal Insurance eBook
This eBook will:
- Break down the types of personal insurance cover available – including features and how they work.
- Discuss ways in which insurance can be paid.
Do you want to discuss your personal insurance needs with one of our professionals?
Call us on 03 8317 0665 or book a time here.
Have you considered life insurance? How would you and your family cope financially if you were in an accident or got sick and couldn’t work for an extended period of time?
We find that most clients often neglect to protect their most important asset – their ability to earn an income.
A sound financial plan will help you create wealth and preserve it. Your financial adviser can help you structure your financial plan so that if you’re not able to work, you can still maintain your standard of living and keep your investments.
There are different types of insurance for different needs.
Life insurance can provide financial protection for your dependants if you die. The cost depends on the type of cover you choose. You should review your cover regularly to ensure you are not under- or over-insured. The most appropriate policy is one that strikes a balance between how much premium you can afford to pay and favourable policy conditions. Life insurance can be used to repay debts, cover your dependants for the loss of your income and/or secure your business.
Total and Permanent Disability (TPD)
TPD is additional to life insurance cover. It pays a lump sum if you can’t ever work again because of illness or injury. TPD can be used to repay your debts, cover medical expenses, capital gains tax liabilities and cover your dependants for the loss of your income.
The precise definition of TPD and the conditions that must be met to receive compensation vary considerably between insurance companies. So it’s important you understand the conditions under which the insurance company will pay a claim before taking out TPD cover.
An income protection policy can generally pay you up to 75% of your monthly income if you can’t work due to illness or injury until your 65th birthday.
Trauma insurance pays a lump sum if you suffer a specified traumatic event such as the diagnosis of cancer or suffer a stroke.
The benefit is paid when diagnosis is confirmed, not when you die of the condition. This is important because it means you and your family have a lump sum you can use to help make your way through a difficult time. When assessing a person’s needs for trauma insurance, we consider the need to pay for additional medical care and ensure that lifestyle and loan repayments can continue to be met.
Things you should consider
There is not a single answer or formula to determine how much insurance you need. The type and amount of cover you should consider will depend on a number of factors:
- Your personal financial circumstances and objectives (home loan debt, personal loans, etc)
- Your lifestyle needs
- How many dependants you have
- Your age.
Just as life changes, so will your personal insurance needs, so it is important to review your cover over time. Our job is to help you assess your insurance needs as part of your overall financial plan.
At Devon Partners we believe that wealth protection is an integral part of any financial strategy.
This information is intended to provide general information only and has been prepared without taking into account any particular person’s objectives, financial situation or needs (‘personal circumstances’). Before acting on such information, you should consider the appropriateness of the information having regard to your personal circumstances. In particular, you should read the relevant Product Disclosure Statement (PDS) before making any decision about a product.