Protect Your Future with Everalls Wealth Management Personal Risk Insurance Solutions

What would happen if you could not work due to an illness, accident, or death? Would you have to pull your kids from their private school, lose your car, or worse, lose your home? Different types of personal risk insurance can ease the financial impact of these unexpected events, but which type is best for you and your family?

Why Do You Need Personal Risk Insurance?

 

When you’re fit and healthy, and your employment feels secure, it’s easy to forget how quickly things can change. Losing your ability to perform your regular duties due to an injury or illness can stop your income. You and your family could be financially vulnerable if you do not have sufficient passive income to continue paying your bills. That’s where personal risk insurance can help.

The devil is in the details with insurance, and buying cheap cover can be very costly. Instead, do your homework and get quality cover that will protect you when you need it, rather than pay anything at all for poor cover that will not.

Insurance is a backup plan if an unforeseen event impacts your plan A. Our Everalls Wealth Management (EWM) approach is to build a holistic plan that health issues nor high insurance costs will derail. We want to make sure our clients have the right level of cover, where they are well protected but not paying too much for unnecessary cover. Ideally, we aim for our clients to be self-insured by their 50s when personal insurance premiums become very expensive.

Understanding Your Insurance Options

 

Income Protection Insurance

Also known as salary continuance insurance, Income Protection Insurance provides an ongoing income if illness or injury prevents you from working. Each policy defines a ‘disability’ and a range of benefits, so it’s important to understand precisely what you’re paying for.

Total and Permanent Disability (TPD) Insurance

TPD provides a lump sum payment if you are totally and permanently disabled. It can be specific to your occupation or a cheaper policy based on any occupation. You can use this to pay off debts, cover medical expenses, or invest in income-producing assets.

We believe in Own Occupation cover as it is specific to your daily duties. Our clients have worked hard to train and upskill themselves, and we want to make sure they are protected if they cannot work in their profession. While Any Occupation cover is often less expensive, it offers less protection because it only pays out if you cannot perform any job, not just the one in which you are specifically trained. This can make it more challenging to qualify for a claim, leaving you financially vulnerable if you can still perform a less skilled or lower-paying job.

Trauma Insurance

Also known as critical illness cover or recovery insurance, Trauma Insurance provides a lump sum if you suffer a serious injury or are diagnosed with specified illnesses like cancer, heart disease, or stroke. This money can cover treatment costs, therapy, lifestyle changes, and living expenses while you recover.

Life/Death Cover

Life/Death Cover provides a lump sum payment to your nominated beneficiaries in the event of your death or if you are diagnosed with a terminal illness with a life expectancy of less than 12 or 24 months. This type of insurance ensures that your loved ones are financially supported, helping them to cover immediate expenses, pay off debts, and maintain their standard of living during a difficult time. This cover offers peace of mind, knowing that your family’s financial future is protected even if you are no longer there to provide for them.

Determining the Right Coverage

You could hold a personal risk policy for 20 to 40 years, so it’s important to make sure you’re only paying for the cover you need. Over-insurance can be just as expensive as being under-insured. We recommend getting professional advice to ensure all relevant factors are considered. A Personal Risk Insurance Needs Analysis can guide you on how much coverage you require based on age, income, debts, and assets. An adviser will also do professional comparisons to evaluate the quality and prices of the various insurance policies available on the market.

Learn more about insurance options here.

Special Considerations

 

Pre-existing Health Conditions

People previously diagnosed with certain conditions have a higher chance of making a claim. Insurance companies factor these conditions into their cost calculations. A professional adviser can help you find a provider who meets your needs.

Age and Premiums

As you age, premiums generally increase. An option known as ‘level premiums’ might be worth discussing with an adviser. Though higher initially, they remain consistent over time, making them more affordable in later years when you need them most.

 

Why is it important to review your insurance regularly?

 

We have often found that clients have purchased insurance policies and accepted annual increases in cover without examining the actual level of cover required now. Those clients have not considered that their superannuation balances have increased, their debt levels have probably decreased, and their children are now older and closer to finishing school and becoming independent. Therefore, they don’t need as much cover anymore. In addition, we have found that insurance reviews for clients have identified opportunities to have their insurance policies fine-tuned to provide more appropriate terms for their circumstances (e.g. waiting periods and occupation definitions) and make their policies are more cost effective.

 

Why Choose EWM?

 

For our holistic advice clients, we do not charge commissions. This means your policies could be 20% to 33% more cost-effective. If you are a high-income earner paying a lot on insurance, this saving alone could pay for the full holistic advice fee. This also means we are not conflicted by commissions, biased toward any specific insurance provider, or financially incentivised to keep your cover higher than required.

At EWM, we understand that the details matter. A Product Disclosure Statement (PDS) is your legal contract with the insurance company; understanding it thoroughly is crucial. Investing in personal risk insurance means paying for peace of mind. Our team of experienced professionals can help you navigate the complexities, ensuring that if the worst should happen, you and your family have the financial protection you need.

Get in Touch

Contact us today to discuss your financial future and how your personal risk insurance needs fit into your bigger plan.

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