Whilst we are young and healthy we are often reluctant to think about the things that could happen to us. But ignoring risk can be dangerous. If you couldn’t work because of illness or injury, how would you replace your lost income? And what would happen to your family if you died tomorrow?
Insurance is an important risk management tool that can protect you and your family from financial hardship caused by unplanned, or even tragic events.
Complete Financial Balance work with you to identify your risks and financial needs, and implement a cost-effective risk management program that has been developed with your specific circumstances and requirements in mind. The Complete Financial Balance Advisers are licensed to provide insurance and risk management recommendations across the following product range:
- Term Life Insurance
- Total and Permanent Disablement (TPD) Insurance
- Trauma Insurance
- Child Cover
- Income Protection Insurance
- Business Risk Insurance
- We can also provide business risk management advice offering Key Person insurance and Business Expenses insurance to business owners and boards.
If you have existing insurance arrangements, it is important that you review these annually, consider whether your personal circumstances have changed and take advantage of recent policy changes. Many insurance policies have evolved in the last two years and now offer advancements that may improve your benefits and reduce your costs. Our Advisers can review your current insurances and ensure you are appropriately covered.
Term Life Insurance
This type of insurance will provide your surviving beneficiaries, third party or an estate with a lump sum to help meet their financial needs and objectives in the event of your death. In the event of being diagnosed terminally ill, it would be normal for all or part of the benefit to be paid. The level of term insurance cover should be an amount that will, upon death, repay debt, funeral expenses and adequately ensure financial security for your family.
Total and Permanent Disablement (TPD) Insurance
This type of insurance provides a lump sum payment if you become Totally and Permanently Disabled. In general, it is defined as the inability, through sickness or accident, to perform your usual occupation, and would be considered as never being able to work again. At a minimum, you should insure for a lump sum sufficient to discharge any outstanding debts. The meaning of Total and Permanently Disability is defined in each policy document and can vary between providers. Generally there are two Total and Permanent Disability definitions available: Any Occupation and Own Occupation. Please speak to your CFB Adviser for more information about which definition is right for you.
This type of insurance provides a lump sum payment in the event of you being diagnosed with one of a specified range of critical illnesses. The list of conditions covered is often optional and varies between companies, as do the definitions of those conditions, although conditions covered will typically include:
- Heart attack
- Paraplegia and Quadriplegia
- Coronary Artery Bypass Surgery
- Multiple Sclerosis
At a minimum, you should insure for a lump sum sufficient to at least meet the costs for long-term treatment not covered by your private health insurance. Ideally it should also provide a lump sum for any debt repayment, income needs, and home modifications
Child Cover can be applied for as an additional option on lump sum policies to pay up to $200,000 per child in the event of death, terminal illness and a range of trauma events.
Income Protection Insurance
This insurance helps replace your regular salary or wages if you are unable to work for a period of time due to illness or injury. Generally a maximum of 75% of your annual salary or wage income can be insured. You can also select the waiting period before being eligible for payment which can range from 14 days to 24 months. You also have the ability to chose the length of time over which the benefit is to be paid, for example 2 years, 5 years, or to 65 years of age. The premium that you pay will be affected by these variables. Premiums are income tax deductible or can be paid through superannuation with concessionally taxed funds.
With some insurers additional components can be added to enhance your Income Protection insuring:
If you are eligible for an Income Protection claim because you are totally disabled and unable to work due to an injury resulting from an accident, the accident option can reduce your waiting period so that your Income Protection benefit payment includes all or part of the waiting period.
The superannuation benefit option provides for the continuation of payment of your superannuation contributions whilst you are receiving Income Protection benefit payments.
Needle Stick Cover
For medical professionals, this is an option available in some Income Protection policies that will pay the sum insured up to $1,000,000 in the event that the medical professional is infected with Hep B & C or HIV while performing their occupational duties. must be specifically purchased as an option on an income protection policy. Please note that not all insurance companies offer Needle Stick Cover.
CFB is one of the only Financial Planning companies specialising in this advice.
Business Risk Insurance
Complete Financial Balance also offer business risk insurance to insure a business for events that may affect key persons.