Many people don’t know where to start when it comes to personal insurance…
I can help you create a plan which outlines the types of personal insurance that may be appropriate for you depending on your current stage of life.
If you’re accumulating wealth…
The key to building up your wealth, whether through regular saving, buying your first home, increasing your super contributions or investing directly in shares, is to maintain or increase your income. So what would happen if you were suddenly no longer earning and you had no income?
This is where income protection insurance (also called salary continuance) is worth considering. It allows you to receive up to 75 per cent of your income should you be unable to work for a period of time.
It protects your wealth accumulation strategy while you recuperate, and you may also be able to claim the premiums as a tax deduction.
If you have a family…
Having a family means there are a lot of people depending on you and your ability to provide for them. Insurance can provide peace of mind from knowing that your family is protected should something unexpected happen.
Having a life insurance policy in place for you and your partner will help cover your living expenses and allow one of you to take time off work should something happen to the other.
Life insurance can also be taken out within your super fund, with the premiums deducted from your contributions, so there is little impact on your after-tax income.
If you are close to retirement…
The risk of suffering a major trauma increases significantly around the time that you start thinking about your retirement plans. Having trauma insurance in place will help to protect you against the costs of such a life-changing event by providing you with an immediate lump sum.
This can be used to cover your living expenses while you or your partner take time off work, pay down debts or cover any modifications required to your home or car.”
Trauma insurance also helps to reduce the likelihood of drawing on the savings that you have worked so hard to build up before retirement.
If you’re retired…
Life expectancy is now 84.1 years for men and 87 years for women[1], making it much more likely for you to experience events that require expensive medical treatment and ongoing care.
This also means you or your partner could be left with a much lower level of retirement savings should one of you become ill. Given that you are not able to replace the costs of treatment because you have stopped working, having trauma insurance in place can help to cover the costs associated with the treatment so that your standard of living isn’t compromised, while life insurance will provide the financial support your surviving spouse may need should you pass away.
Let me help…
To find out more about the different types of insurance, whatever your age or financial situation, contact me on 0438 946 638 or email info@financialservicessa.com.au
[1] ‘Australia’s Health 2014’ – Australian Institute of Health and Welfare, May 2014
Phillip Dibben is a financial adviser at Active Financial Management. Active Financial Management and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306 trading as Fortnum Financial Advisers.
This information (including taxation) does not consider your personal circumstances and is of a general nature only. You should not act on the information provided without first obtaining advice specific to your circumstances.