Wealth protection is about protecting everything that you have worked hard to achieve.
Protecting your wealth can ensure that in the event that you suffer a premature death, illness or injury, you and your family can maintain your current lifestyle based on your level of income.
Most people do not plan for death. Suffering an illness, injury or trauma are things that we prefer not to consider.
Now take a moment and consider, what would happen if you were injured, fell ill or suffered a premature death? No one likes to think about it, but have you considered whether your family would be protected? Could you get by financially if you were no longer able to work either for an extended period of time or permanently? What affect would this have on you and your family’s financial security? And what would happen if you died?
Wealth protection is an essential part of every financial plan. Without income, trauma, life and total and permanent (TPD) insurance, the wealth you’ve built up can rapidly erode as a result of an accident or illness.
How can a Financial Planner help?
A financial planner can assess your personal situation and recommend appropriate policies that best suited your personal circumstances. A financial planner can also review your current policies to ensure they continue to provide an adequate level of cover. This is particularly important if your financial situation changes and extended coverage is needed for additional family members.
What types of insurance cover is available?
Income Protection Insurance
It’s actually your single biggest asset, could you survive without a car for six months? How about surviving, paying the bills without an income for 6 months?
Your ability to earn an income is your most valuable asset and it is essential to protect your primary source of maintaining your lifestyle and building wealth.
Income protection policies can replace up to 75% of your gross income if you’re unable to work due to sickness or injury. That means if you could not work for an extended period of time due to accident or illness, up to 75% of your salary would usually be paid for up to age 65 depending on the terms of your contract.
Imagine leaving your family burdened with the debts you created if you died. Insuring your own life ensures you leave adequate resources to your family and dependants.
Trauma insurance can provide a lump sum payment should you suffer from a number of medical conditions such as cancer, stroke, heart attack and coronary artery (bypass) surgery.
Trauma insurance can be used to take care of all your bills so you’re free to recover and get on with your life or pay for a long held dream. Your lump sum is paid on diagnosis of the covered illness.
Business insurance provides insurance cover to business owners. Key person business insurance and buy/sell arrangements are vital policies for your business.
Key person insurance protects a business in the event of the loss of a person who makes a significant contribution toward the profitability of the business. People who fall into this category would normally have some particular ability, which is difficult to replace.
Buy/sell arrangements are particularly important for business partnerships. A buy/sell agreement is a contract that provides for the future sale of your business interest or for your purchase of a co-owners interest. The trigger event is if one partner exits the business when due to death, retirement or disability, the continuing partners are required to buy out the other partner’s interest.
Insurance cover on the life of each partner can be used to provide a fully funded exit strategy in the event of the death of a partner.
Are you ready to secure your financial future?
Your initial, no-obligation consultation with a Knowledge IQ Financial Planner is complimentary. Make an appointment for a time that suits you.