Risk Insurance Strategies
Provides your family with the financial support they need in difficult times.
What would happen to the financial future of your family if you were to die suddenly? What would happen if you were to suffer a sudden disability, terminal illness or major injury? This type of event could be devastating to your family’s well-being and security. Risk insurance can protect you and your family against this type of loss.
What is risk insurance?
Personal risk insurance relates to a variety of insurance cover options that protect individuals against financial loss due to death, illness or injury. There are four main types of cover:
Life Cover – provides an agreed amount upon your death to your family or a nominated person. Life insurance can be used to help pay-off debt and used to meet your ongoing expenses such as mortgage, personal debts, funeral expenses, children’s education, ongoing income.
Income Protection – provides an income stream to support you and your family if you can’t work due to illness or an injury. This can usually provide up to 75% of the pre-tax income that you earned prior to injury or illness. This insurance can help you make ongoing mortgage payments, as well as servicing other debt and providing an income.
Trauma Cover – provides an agreed lump sum payment to you if you suffer any specified major medical condition. Trauma insurance can be used to relieve the stress associated with the medical condition by providing for medical expenses, mortgage payment, extended holiday or subsidising your income if a change of employment is required.
Total and Permanent Disablement Cover – provides an agreed lump sum payment to support you and your family if you are totally and permanently disabled as a result of an injury or illness. This can help pay off mortgages or other personal debts, provide an income or help with expenses associated with a change in lifestyle.
Key Advice Areas
Level of cover – By assessing your current situation, we can analyse and recommend the right cover. Whilst many people are under-insured, a large number are also paying too much for insurance that they may not need
Ownership of Cover – A key decision is whether to purchase insurance personally or within Superannuation. Some insurances are tax-deductible if paid personally, others only receive favourable tax treatment when paid for by Superannuation funds. An assessment will be made based on your tax position as well as current insurance and Superannuation arrangements.
Choice of provider – Having insurance from providers with a strong claims history and financial strength will provide extra assurance. As we have independence in our product recommendations, we will always be able to work in your best interests.
Paris Financial Advisers welcome an opportunity to speak to you about ways they may be able to assist you and your family. Contact us today.