Life insurance products provide Personal Risk Insurance
Life insurance products are designed to ensure that you and your dependants are financially secure in the event of untimely death, critical illness (or trauma), or because of incapacity to work as a consequence of illness, accident or injury. As appropriate to the circumstances, life insurance policies will provide an ongoing income stream, or a lump sum payment.
What are Life Insurance products used for?
Individual needs for insurance protection, covered by a comprehensive insurance portfolio, will ensure that necessary financial support is available for those dependant on you to be able to meet debt repayments, attend to major home replacement/ renovation needs, or generate an ongoing income stream – and with that, peace of mind that they will have an acceptable standard of living in the future.
How do you know the amount of Life Insurance needed?
An insurance needs analysis tool will determine what types of life insurance will best meet your financial protection needs, what levels of cover are required in each type of policy identified; and who should own the policies that will provide the protection that will bring your dependants confidence as to their financial independence in the future. [Ownership questions require careful consideration: policies can be owned by the life insured, by a spouse/ business partner, or even by a superannuation fund or other entity with whom the insured is associated – depending on the type of insurance and for whom the policy is intended to provide protection. Getting ownership right can have an impact on how proceeds might be taxed.]
Whilst surveys conducted from time to time over the past decade or more have shown that Australians are seriously under-insured, your family don’t need to experience financial distress at the same time as suffering the emotional upset of losing you (whether by impaired capacity – or death)!
What types of life insurance are available?
Personal Risk Insurance protection can be arranged for –
- Life (Death), (also known as Term Life);
- Total (Temporary) and Permanent Disability (TPD);
- Trauma (Critical Illness);
- Income Protection/ Salary Continuance; and, where appropriate,
- Business Expense Insurance.
What do you need to do now?
The experienced advisers at Continuum Financial Planners Pty Ltd have the tools available to identify your personal risk management needs. We back that service up with an annual review process, offered to ensure that the life insurance protection strategy agreed and implemented stays relevant to your evolving circumstances (you don’t want to be over-insured any more than you shouldn’t be under-insured!). To access our risk insurance services, Contact Us or phone 07-34213456 and our helpful staff will arrange a meeting with you.
[This article was originally posted in August 2009; it has been occasionally refreshed and/ or updated, most recently, in March 2017.]