Securing your financial future by protecting what you have now.
Whatever you build will not stand for long without a firm foundation. The same is true for your finances. Its important to protect what you have, your lifestyle and your family by considering personal and business insurances.
Types of insurances you might want to consider:
Life cover – provides a lump sum in the event that you die. Typically this cover is purchased by the family “breadwinner” to cover debts and provide for lost future income, in the event of premature death.
Another common strategy, is to insure the life of a non-working spouse, so that in the event of their death the family can purchase external housekeeping and childcare services. Life cover is often very cost-effective and premiums can be paid from super, so there is no out of pocket expense for you.
Total and Permanent Disability insurance – this is often called “recovery insurance” as it pays a lump sum in the event that you are totally and permanently disabled and it is determined that you will never work again.
The lump sum payout is typically used to replace some lost future income and to meet the additional medical and adjustment expenses. Again the premiums may be debited from super.
Critical Illness – again a “recovery insurance” as it provides a lump sum amount in the event that you are diagnosed with a major medical trauma ie cancer, heart attack, stroke, or any one of a number of listed conditions.
Typically these funds are used to fund additional medical expenses and adjustment costs. Whilst the Australian health system is arguably one of the best in the world, there are many drugs and treatment options that are not yet available via the public system and the costs of self-funding these alternative approaches can be prohibitive. Having access to a lump sum payout at this time can ease financial pressure at an already difficult time.
Children’s insurance – when taking out an adult insurance policy it is also possible to extend cover to include any children (under 18). Looking after a very sick child is an emotional and traumatic process and whilst the cost of medical care may be covered under the public health system the additional costs such as purchasing additional external services and equipment or even loss of income if one parent elects to give up work won’t be covered by either the public system or your private health insurance.
Income Protection Insurance – this pays a monthly benefit if you are unable to work for an extended period of time due to sickness or injury . This type of insurance is generally regarded as forming the foundation of your risk mitigation strategy and is required by people of all circumstances – whether they are single and just starting out, and looking to protect themselves and their lifestyle or have a spouse and children and are looking to protect their family and financial future . The premiums can be deducted from your super balance, or you can elect to pay them from your cash flow (in which case it’s a personal tax deduction).
Business Risk Insurance – as a business owner you and perhaps a few staff are responsible for the day-to-day running and also income generated by your business. The illness, or death, of any of these key people could have a devastating effect on your business and your financial future. There are a number of business risk insurances decide to minimise the risk to the business of these events occurring.
Different people have different insurance needs – depending on their life stage, their personal circumstances, whether they are business owners or have other resources they may be able to draw on in difficult times. Purely FP will work with you to understand the specific risks you face and identify any gaps in your existing insurance arrangements.
We are able to broker a good deal for you with the provider that best suits your individual needs before managing the application process on your behalf.
Insurance is about buying peace of mind and insurance with Purely FP is about peace of mind with friendly, personal service and people who will be with you every step of the way.
We can also refer you to Estate Planning lawyers who can ensure that your hard-earned wealth and assets are passed on to your spouse, your children or other foundations such as charities. They can assist you by preparing or updating your will, attending to Powers of Attorney and establishing Guardianships for your children.
For most people with standard requirements Purely FP are able to utilize the professional relationships we have put in place to offer you very competitive fees to prepare or review these documents.