Every great financial plan takes into account the threats and risks that you face and uses tools and strategies to reduce and manage those risks. For most of us there is no greater risk than the collapse of a financial plan due to premature death, illness or injury. Efficient insurance planning is the most economical and effective way of dealing with these risks at every stage of life.
When you start to earn income, you need to protect your ability to earn that income. As you move through life and perhaps get married or have children, there are new responsibilities that need a secure protection strategy. There are also specific financial risks that need attention when you take on new financial responsibilities, such as starting a business or taking out a mortgage.
In later life you may want to adjust your insurance plan to take into account grandchildren or extended family, so that you can properly fund and allocate benefits.
Our expertise in risk planning gives you an edge in finding the most efficient insurance solutions, so that your financial plans are appropriate at every stage of life. This can include a range of cover options.
How much are you worth to your family? Of course, it is impossible to quantify in emotional and relationship terms, but it is measurable in financial terms. Think of how much you earn and how many years you will be earning it – and then think of what your family would do without that income.
We can help you create a life insurance plan that pays a cash lump sum to pay debts, cover education and living expenses and to allow your family to invest for ongoing income, if you were to die prematurely and your dependents could no longer rely on your income.
Total and Permanent Disability (TPD) insurance
Have you considered how you would manage without an income? If you become permanently disabled you could suffer devastating financial impacts, when your focus should be on your rehabilitation.
TPD insurance is typically an additional benefit added to your life insurance that pays a lump sum amount if you become permanently disabled (as defined in the policy). You can use it to eliminate debt, pay for treatment and maintain your living expenses, leaving you to focus on your own wellbeing.
Are you in a high-risk category for suffering a heart attack? Of course, not all serious medical conditions result in permanent disability, but they can still result in serious financial impacts. Imagine suffering a heart attack or learning you have cancer.
What would you want to do to ensure a strong recovery and to de-stress your life?
Trauma insurance can be the ideal solution with a lump sum benefit payable if you are diagnosed with a specific illness or injury covered by the policy. This includes cancer, stroke, heart disease, blindness, severe burns and a host of other medical conditions.
Income protection insurance
Could you manage financially if you no longer earned an income? Some injuries or illnesses may result in temporary loss of income that cannot be covered by savings and will outlast any sick leave you may have. Income Protection gives you broad based illness and accident coverage that pays up to 75% of your gross annual income, to spend for a period you nominate (usually up to age 65).
You can use it to cover living expenses, debts, education costs and other essential spending until you are able to return to work. Premiums are generally tax deductible too, making it even more attractive.
Business expenses insurance
Are you self-employed? Business Expenses insurance is particularly useful for you to cover fixed business expenses should you be unable to work due to illness or injury. This can keep your business active while you recover and can be used to reimburse costs such as:
Child trauma insurance
Are you a parent? What would you do if your child became seriously ill? Child trauma insurance provides you with a lump sum payment in the event of your child suffering from a range of specified medical conditions, so that you have the resources to enable you to devote your focus to their recovery. The insurance can be used to pay for medical treatment, rehabilitation, or as replacement income if you need to take time off work to be with your child.
Australians are familiar with insurance particularly with their cars, home and contents and business property. Yet for business owners, making sure their business continues to operate in the event of an illness to them or one of their key staff and protecting the ownership and succession of their business should they die unexpectedly is often overlooked.
In business life, as in daily life, unexpected events can and do occur. Business owners can be temporarily or permanently taken out of action as a result of sickness, accident, major health traumas (such as heart attack, heart disease, stroke and cancer) and premature death.
Business interruption from these causes can be short term, prolonged or permanent, and can range from incidental to serious. There are many stakeholders interested in the business as an ongoing concern including suppliers, staff, clients, creditors and family, so the effects can magnify.
When considering how to mitigate the negative impact of unexpected events the simplest and most effective solution is business insurance strategies. These strategies protect you as a business owner, your family as potential recipients of your estate, your business itself, your business partner and your clients should something unexpected happen.
Every owner has a unique set of requirements and potential challenges to consider. Business insurance needs to be carefully crafted to ensure the right strategy and the right level of cover. As a guide, business owners should consider:
We can discuss wealth protection options for your business and tailor specific strategies to help you manage the risks and safeguard your business from unexpected events.
Business succession planning
What would happen to your business if you were to die or be unable to work due to illness or injury? Would your business partners want to buy out your share? Do you want your family burdened with business issues? How would the business afford to restructure by buying out the affected partner’s share?
By implementing a Buy/Sell agreement as part of an overall business succession plan, you can help answer these questions positively, ensure a smooth transition of ownership and help keep the business running without upheaval.
We can apply our experience in setting up such structures to help take the worry out of business succession. We work with accounting and legal advisers to get the valuation and documentation set up correctly and we can show you how to efficiently fund the agreement to allow the succession plan to be implemented swiftly and simply.
Let us help you with your Financial Plan + Wealth Creation.
Start building your Master Plan today.
Call 1300 061 818
Visit The Master Plan, servicing Sydney (based in Sydney's Inner West)
Suite 13, 136 Marrickville Road, Marrickville NSW