In order to properly assist you in achieving your goals and objectives, a financial strategy must not only help assist in building wealth, it must also protect what you currently have. The most effective method of protecting your assets is through risk management strategies such as insurance.

Insurance is essentially the transfer of risk from you to another entity (insurance company). This means, that the insurer agrees to compensate you under certain circumstances if you suffer a loss. Without insurance, you would have to pay for the financial loss yourself. Risk management strategies assist to reduce the financial stress experienced when you find yourself or your family sick or injured.

Some personal insurances that may be appropriate to consider are below:

Life insurance

Consider the impact on your family if you were to die.
– Is your family depending on your income to live?
– Are you the main carer for your children?

Total and permanent disability

Consider the impact if you were totally disabled:
– Would you need to modify your home for a wheelchair?
– Would you need ongoing medical care or rehabilitation?

Trauma / critical illness

Do you have enough savings set aside to take time off work to recover from a heart attack, stroke or cancer and still meet bills and medical costs?

Income protection

What would happen if you were sick or injured and couldn’t work? Would it help to receive a monthly payment until you are back on your feet?

Australia is one of the most uninsured countries in the world. So that you may protect yourself and those that you care about, make an appointment with one of the team at M&A Wealth and discuss your options when it comes to life, total and permanent disability, income protection and trauma insurance.

When building towards your future, protecting your current position is paramount.

More information about personal insurance:

In the event of your death or terminal illness, term life insurance offers a lump sum payment.

These funds are designed to provide peace of mind and financial security for your family. Funds could be used to pay down debt and meet funeral expenses, medical costs, living costs, child care or education costs.

This type of cover provides for the payment of a lump sum benefit in the event that the insured becomes totally and permanently disabled as a result of illness or injury and is unable to work again. The definition of total and permanently disabled varies among insurers and should be carefully considered when choosing an insurer.

Payment of a lump sum TPD is usually made in circumstances where the insured:

• Is unable to work again;

• Has lost a limb(s) or sight; and/or

• Is unable to perform basic daily living activities

Trauma or critical illness insurance is designed to pay a lump sum on the diagnosis of an insured medical event defined in the policy. Many policies in today’s market cover more than forty different major medical conditions.

The purpose of this type of cover is to assist in the payment of medical costs associated with the recovery from such an illness or injury. It may also include an allowance for the necessary adjustments to be made to the home in the event of an associated disablement from the illness.

It is important to understand the specific events/conditions that are and that are not covered under your policy.

Income protection insurance provides cover for income lost due to the inability to work as a result of sickness or injury. It pays the life insured a regular income stream either fortnightly or monthly depending on the policy provisions, rather than as a lump sum.  The amount payable varies upon individual and occupation, however as a general rule, up to 75.00% of pre-disability income may be covered.

Polices also have both a waiting period (how long you need to wait before being paid) and a benefit period (how long you will be paid for).

Waiting periods can range from 14 days to 2 years. The waiting period will directly impact that premium payable, and this should be taken into consideration when selecting an appropriate policy.

Benefit periods also vary and may be 2 years, 5 years or even up to age 70. It is important to note that the benefit period sets the maximum period for benefits to be paid. If you are on claim and you recover and go back to work, your payments will reduce or cease.