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?
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 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; buying cheap cover can be very costly. It is better to do your homework and get quality coverage that will protect you when you need it rather than pay anything at all for poor coverage that won’t.
Insurance is a backup plan if an unforeseen event impacts your Plan A. Our EWM approach is to build a holistic strategy that high insurance costs will not derail. We want to make sure our clients have the right type and level of cover, where they are well protected but not paying too much for that 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.
Also known as salary continuance insurance, Income Protection Insurance provides an ongoing monthly 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. For example, there can be different waiting periods before payments start and terms for how long the policy will pay out.
TPD provides a lump sum payment if you are totally and permanently disabled. The payment can be specific to your occupation or a cheaper policy based on any occupation. You can use it 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 ensure 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.
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 a specified illness, such as cancer, heart disease, or stroke. This money can cover treatment costs, therapy, lifestyle changes, and living expenses while you recover.
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.
You could hold a personal risk policy for 20 to 40 years, so it’s important to ensure you only pay 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 ur age, income, debts, and assets. Our advisers will also do professional comparisons to evaluate the quality and prices of the various insurance policies available on the market.
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 (stepped premiums)—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 the most.
For our holistic, ongoing 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; it is crucial to understand it thoroughly. 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.
Contact us today to discuss your financial future and how your personal risk insurance needs fit into your bigger plan.
Bob Chen from Everalls Financial Management have been providing holistic financial management of my financial affairs including my SMSF for the last three years and is now providing a solid plan for my transition into retirement. Bob is fully engaged building your future wealth.
I have no hesitation in recommending Bob Chen to anyone who is looking for an engaging, friendly, and professional financial advisor.
We have worked with Bob Chen over the past 8 years and could not ask for a more professional, dedicated and caring financial adviser. Bob has provided us with advice to help build a solid future for our family. We trust Bob and look forward to many more years ahead.
I’m so grateful to have met Bob. He’s provided me with sound, wholistic advice on how best, and how quickly, I can set myself up to retire comfortably.
Bob Chen has been extremely helpful in getting our financial matters in order and is always just an email or a phone call away. We would highly recommend his professionalism to any prospective client.
My husband and I were extremely impressed in the way Bob has a holistic approach in the way he provided Financial Advise to us. We now have a sound strategy in place to help us achieve our future goals which was lacking in the advise provided by our previous adviser. We both highly recommend Bob as we now have a Financial Adviser that we value and trust.
We have finally found a Financial Advisor that we trust. Bob Chen is professional, dedicated and most importantly listens. He has helped my wife and I to understand our financial goals, execute a sound strategy that we understand and be confident we are positioned well for the future. We look forward continuing to work with Bob in the future.
Bob Chen has been a great asset to us. His financial advice was considered, well researched and it has increased our returns. We feel far more confident about our financial future and estate planning for the kids. He is great fun to work with and I have recommended him to several good mates!
We’ve only started feeling like we are in control of our finances and our future since we started working with Bob Chen, of Everalls Wealth Management, a few years ago. He is responsive, helpful and gives great advice.
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