Insurance can protect the wealth and assets you have worked so hard for, if the unexpected occurs. Major accidents and long term illnesses are unexpected and generally have a significant health impact as well as a significant detrimental effect on your finances if you are unable to earn an employment income.
In most instances, the younger you are when you start your insurance policy the better off you will be due to being able to select “level premiums” at a younger age as well as the less chance there will be of having exclusions or premium loadings due to pre-existing or previous health conditions. Therefore we encourage you to consider insurance well before you have a perceived need ie marriage, family, large debt etc.
So what types of insurance are there?
Life insurance pays a lump sum to the policy owner or nominated beneficiary in the event of the insured’s death. This type of cover protects your family should the worst happen to you. This lump sum can be used to reduce debt, fund children’s education needs, provide an amount available to invest in income producing assets etc. Life Insurance can be held inside or outside of superannuation.
Total and Permanent Disability
TPD cover provides you with a lump sum in the unfortunate event you are permanently unable to earn an employment income or manage daily living activities. This lump sum can be used to reduce debt, fund children’s education needs, provide an amount available to invest in income producing assets etc.
Income protection insurance helps replace your monthly employment earnings if you are unable to work for a period of time due to accident or illness. The cost of Income Protection insurance is tax deductible to you if held outside of superannuation.
This type of cover protects you financially with a lump sum payment upon diagnosis of a serious illness or disability, such as cancer, heart attack, heart disease, stroke and many more.
Crosby Dalwood Pty Ltd ABN 30 132 317 876 provides its financial planning services as an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625. Australian Financial Services Licence Number 227232 (‘Count’) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count is a Professional Partner of the Financial Planning Association of Australia Limited.
General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.