"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
Do you need Personal Risk Insurance?
The answer is probably, yes!
Did you know that 95% of Australian families do not have adequate insurance cover?
It is a common fact that most families will insure their car which may be valued at $50,000, their home contents valued at $100,000 but not their income valued at $1,000,000!
The reason for personal insurance may be a scary topic but it’s nevertheless a crucial part of any financial plan.
If you’re not sure that you really need personal insurance, ask yourself the following questions:
• If you died, would your family be able to survive without your income?
• Could your children still go to a private school, go on holidays or be able to have those little luxuries you always wanted for them?
• If you had a bad accident or a long-term illness, how would your family pay the bills?
• If you don’t have a family, who would look after you and would you be able to afford the care?
What are the types of personal risk insurance?
There are basically four different types:
A lump sum payable on death or terminal illness. This can help support your dependants to maintain living standards or pay off debts.
Total and permanent disability (TPD) insurance
A lump sum to help support you if you are totally and permanently disabled due to illness or injury.
Income protection insurance
A monthly income stream to help support you if you are temporarily unable to work because of illness, accident or injury.
A lump sum to help support you if you are diagnosed with a specified major medical condition (eg. heart attack, stroke or cancer).
Ways your adviser can help
• Your financial adviser can help interpret the various insurance policies and find the right mix of cover to suit your needs.
• They can outline the pros and cons of waiting periods, different insurance providers and premiums (cost).
• Based on your current investment portfolio and earnings they can ensure your level of income is protected should the unexpected happen.
It usually takes something frightening, like a friend or family member who gets sick or has an accident that causes a personal wake-up call-don’t leave it too late, contact your financial adviser today!