The only certainty in life is that the unexpected happens when you least expect it. You probably have put insurance in place to protect you and your family, but things change and we can't always take care of everything that we would like to. If your work situation has changed; if you have increased your borrowings to buy a house or business, or had an addition to the family, you might need to review your insurances.
The right insurance advice will help you to minimise risks, securing your family's future, and softening the financial blow of a tragedy
Life insurance pays a lump sum to the policy owner or nominated beneficiary in the event of the insured's death. Life insurance cover should be sufficient to at least discharge any outstanding debts, funeral & legal expenses. Ideally it should also provide a lump sum to your dependants to replace your income and cater for the on-going need to provide housekeeping and child minding in the event of premature death.
Income protection insurance helps replace your regular earnings if you are unable to work for a period of time due to accident or illness. You can select up to 84% of your current gross salary with a waiting period from 14 days to 24 months that is to apply before the insurer commences a regular income stream for a set period of time, either 2 or 5 years or to age 65. The premium you pay will be affected by all of these variables. Premiums for income protection policies are tax deductible and benefit payments form part of your assessable income.
You have insured your personal income but how will your leases, rent and other business expenses be paid? You might not be able to fund these as well as personal expenses from you income protection payout. BEP will cover many of your business expenses if you are sick or injured and cannot work.
Do you have adequate savings put aside to pay for any additional out-of pocket medical expenses or rehabilitation, let alone your day to day living expenses? If you are the major bread-winner or the primary care giver in your family, Trauma Insurance can protect your family's financial security if you , your spouse or your children become seriously ill.
Trauma insurance provides a lump sum payment on the occurrence of a specified health condition, or in the event of death. Conditions vary with insurer, although these will typically include: Heart Attack, Coma, Paraplegia and Quadriplegia, Cancer, Blindness, Coronary Artery Bypass, Stroke, Multiple Sclerosis.
This cover should be sufficient to provide options, and ideally, a lump sum for medical & rehabilitation costs, as well as possible lifestyle changes and even investment purposes
Will your business survive if anything happens to one of its key people?
Will your estate get fair value for all your hard work if anything happens to you?
Do you have a succession plan for your exit strategy?
Did you know that the bank usually has the ability to re negotiate the terms of a loan if a guarantor dies or is disabled, which could result in difficulty for the remaining
partners or directors?
We can help you draw up a business plan to provide solutions for these vital concerns
A Buy/Sell Agreement ensures the departing owner or deceased owner's estate obtains a fair value on exiting, and the remaining owner gets the control he or she needs .Insurance can fund the Buy/Sell agreement to avoid undue financial stress on the surviving owners
Key-person Insurance-person Insurance
Keyman Insurance will protect your business against the loss of key personnel by providing much needed cash flow at a tragedy event.
Loan Guarantee Insurance enables the business to repay critical loans at the death, disability or trauma of a guarantor.
It is important that with any financial plan, estate planning issues are considered; this will remove any uncertainty regarding the administration of an estate and indentify any taxation issues. Estate Planning encompasses:
Appointing an Executor of the Will
Setting up Power of Attorney: General, Medical and Enduring
Nominating a guardian for minor children
Establishing discretionary trusts
We are able to discuss these issues with our clients and make referrals to suitably qualified legal professionals.