Because life can be unpredictable, it is important to be prepared. While insurance can’t stop incidents from occurring, it can assist you to manage the impact upon you and your family when it does – better helping you to regain control and get your life back on track!
In this article we spoke with Wilson Pateras’ expert Financial Adviser, Lasadi Felsinger. Lasadi helpfully talks about what insurance is, how it can benefit you and how you can best to protect yourself, and your loved ones from risk.
What is insurance?
Insurance works to protect you, your family and your assets when things go wrong. Each day, lives across Australia are disrupted by accidents, serious injuries, illness and death. If something were to happen to you, you would want to ensure that bills could still be paid, and life could go on as smoothly as possible. When it comes to preparing for the future, it is important to understand that there are four types of insurance that – while quite unique – are equally as important as each other. These are:
Life Insurance
To protect the financial future of your loved ones by providing a lump sum payment to your partner or dependents should you pass away unexpectedly.
TPD (Total and Permanent Disability) Insurance
To take the pressure off you financially in the event that you become totally and permanently disabled and cannot perform your everyday tasks without assistance. This is delivered in the form of a lump sum payment (pre-tax or post-tax depending on the structure) based on medical grounds.
Income Protection
To provide you with an ongoing income should you require time off work due to illness or injury. This helps to replace up to 75% of your gross income to cover daily living expenses such as school fees, groceries and mortgages.
Trauma Insurance
To assist with financial and medical expenses as you recover from a critical illness or injury such as cancer, stroke or loss of a limb. Also delivered in the form of a lump sum and tax free (depending on the policy structure).
Why do individuals need insurance?
If there is something important in your life, it is worth insuring. Unfortunately, many people do not consider that they will need insurance until an incident occurs. Insurance provides peace of mind, knowing that your dependents and loved ones will receive financial support should anything happen to you. Each individual is different and will require unique insurance to suit their needs. High income earners for example, may enjoy an expensive lifestyle that would be challenging to manage with the loss of their income.
For example, a client pays $70,000 per annum in private school fees for each of his three children. When the client suffered a serious injury, his insurance policy paid him a lump sum amount where he managed to seek the best medical attention while everyday expenses were covered including the private school fees.
How can Wilson Pateras support you in securing the right insurance for your circumstances?
We specialise in understanding the complexities of life insurance products, including the various policy types, coverage amounts and options available.
The team at Wilson Pateras will first meet with you to discuss what your and your family’s goals and objectives are and will conduct a ‘needs analysis’ to determine the best level of cover required for you. Here, we take into consideration your current assets, liabilities and lifestyle expenses and how to fund the ongoing expenses particularly for young dependents. We will then complete a comparison of multiple providers to determine which are the most suitable and cost-effective options are available for you. Unlike online insurance providers or brokers, we look at your whole financial position rather than just one part of your requirement.
Personal insurance is often an integral part of a comprehensive financial plan. We can evaluate your overall financial situation and goals to ensure that life insurance fits cohesively into your broader financial strategy. We can consider other aspects such as retirement planning, investment strategies, estate planning, and tax implications to provide a holistic approach.
We also offer ongoing support as your personal insurance may need to change over time due to various factors such as career advancements, marriage, children, or changes in financial circumstances. We can periodically review your policy and recommend adjustments if necessary, ensuring that your coverage remains adequate and aligned with your evolving needs.
Please contact us on 03 8419 9800 if you would like to discuss personal insurance for you and your family.
