Could you afford to take a couple months off work without pay? If you are self-employed, could your business survive if you’re not around to run it?
Half of all Australians over the age of 30 will suffer a major illness that can lead to a long-term disability, and consequently, a long-term loss of income. Would you take the chance that the one-in-two would not be you? If this were statistics for a house fire or theft you would not hesitate to take out house and contents insurance. But how many of us really think about organising insurance to protect our major source of income and wealth creation - ourselves?
With the right kind of insurance cover, you can protect your wealth and future earning potential. Insurance can play a vital role in helping you construct an integrated financial solution that gets you where you want to go, safely and securely.
It’s important, however, to get the features and benefits you want at a cost that suits your budget. Today exists comprehensive personal and business insurance solutions that can offer the choice and flexibility necessary to build the cover that’s right for your individual situation:
· The most common component of a risk insurance solution is life insurance. How it works is simple, in the event that you die, your beneficiaries (spouse, children, business partners, who ever is nominated) will receive a lump sum payment. This could be any amount up to millions of dollars to cover all loans and debts you may have and the future well being of your loved ones.
· Income protection provides income replacement options to protect your lifestyle, assets and independence if you suffer illness or injury. They will provide a monthly benefit of up to 75% of your income while you are unable to work.
· Trauma insurance protects you from serious medical conditions and illnesses. You will receive a lump sum payment if you are diagnosed with or suffer a life – threatening illnesses, allowing you to concentrate on what you really need to at this time – your recovery.
· Business insurance solutions can cover debt if a partner or owner dies or is so ill they cannot work in the business. It can also be structured to be part of estate planning and the extraction of ownership in a business without the need to sell or wind it up. Business expenses insurance reimburses overheads and expenses such as salaries, rent and utilities while you are off work.
With professional advice you can examine and choose any combination of the above four types of risk insurance to supply an overall solution that meets your particular needs. Remember, you can’t protect yourself against every hazard in life. But you can take sensible measures to minimise the impact of unexpected, unpredictable, unwanted developments that put your financial future at risk.
Source: ING