Personal Insurance Advice

Our Personal Insurance Advice process involves finding out what’s important to you and empowering you to make better decisions regarding your personal insurance cover. The first type of insurance everyone thinks of is life insurance – which needs no explanation. Our existing clients have thought about and clarified their priorities should they pass away. These priorities may be similar to yours. We often work on life insurance strategies to fund the following items:

  • Reducing the mortgage to a more serviceable level or paying it off altogether;
  • Providing financial support for private school education for the loved ones you leave behind;
  • Leaving a sufficient retirement capital sum to secure a comfortable retirement for loved ones left behind.
personal-insurance-advice

Our process uncovers your perspective and preferences and then we design an insurance strategy to provide for the needs you identify, should any of the insurable events occur.

The following three types of insurance are all about you and making sure you’re best placed to deal with an unfortunate event.

These all provide cover benefits whilst you’re alive. Our advice revolves around giving you the financial control you need during unfortunate times of sickness or disablement.

TPD Protection
  • Paid where individuals are ‘unlikely’ or ‘unable’ to ever work again
  • Provides funds to extinguish debts in the event of Total & Permanent Disablement (TPD) and provides ongoing income to support lifestyle requirements
Trauma Protection
  • Paid on diagnosis of a specified condition e.g. Heart attack, breast cancer
  • Provides a lump-sum to deal with an unexpected ‘crisis’
  • Paid either as a full or partial payment depending on the severity of condition
Income Protection
  • Replaces up to 75% of ongoing income if unable to work due to a sickness or injury
  • A full or partial benefit is available depending on the severity of disability
  • Provides rehabilitation & ancillary benefits

 

For more information on what insurances can cover and the various policy features see the Money Smart Website.

Just like our key investment principle of keeping costs low and minimising risks, we consistently apply this approach to our insurance advice. Quite often you are able to insure for a large amount, but it comes at a significant cost. Insurance advice for us is about educating our clients and empowering them to make an informed decision about the risks that they face. Running through various situations and asking them to consider how they would be placed to respond financially. Where they don’t like the outcome, or could foresee the family struggling financially, we provide recommendations for insurance policies to be put in place to outsource the risk to an insurer.

Integration of our insurance advice within a holistic advice solution means that our insurance recommendations consider the following:

  • Tax effective Ownership for deductibility of premiums.
  • Tax consequence of a possible insurance payout.
  • Beneficiary taxation position on any life insurance policy.
  • Appropriate choice of Stepped v Level premiums considering the length of time our client’s plan to hold the insurance policy
  • Estate planning considerations such as is the policy owned in the most appropriate name/ entity, ensuring that the nomination on the policy remains in line with the client’s wishes on a review basis.

When recommending coverage, we take into account your current financial position, your lifestyle requirements (e.g. private schooling for the kids), implications to cash flow (e.g. potentially structuring certain insurance within superannuation) and tax minimisation. Because all of these inputs change on a regular basis this necessitates regular reviews of all policies to ensure that the cover remains relevant for your circumstances. Reducing the cover where appropriate to ensure that more of your hard-earned money stays with you.

If you’re self-employed or running a business, we can also help with variety of business insurance strategies. Contact Us for more information.

financial
life
planning

Financial Life Planning is a holistic process
that puts your interests first and focuses
on increasing your sense of financial
well-being and life satisfaction.