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 regular income. Unless you have sufficient passive income to continue paying your bills, you and your family could be financially vulnerable. That’s where personal risk insurance can help.

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

Insurance is a backup plan in case your plan A is impacted by an unforeseen event. Our EWM approach is to build a holistic financial plan, protected by insurance, that won’t be derailed by high insurance costs. We want to make sure our clients have the right type & level of cover, where they are well protected but not paying too much for cover, which would prevent them from achieving their goals. Ideally, we aim for our clients to be self-insured by their 50s when personal insurance premiums become very expensive.

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 insurances, 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, and 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.

Understanding Your Insurance Options

Income Protection Insurance

Also known as Salary Continuance Insurance, Income Protection Insurance provides an ongoing income stream to replace your salary if illness or injury prevents you from working. Each policy has its own definition of what constitutes a ‘disability’ and a range of benefits, so it’s important to understand exactly 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 Own occupation or a cheaper policy which is 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 insurance 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 give you guidance on how much cover you require based on your 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.

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 specific 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 it most.