Risk Protection & Insurance

Planning for unexpected events ….

When planning your financial path through life, to retirement and beyond, many people overlook, underestimate or even deliberately ignore the risk and possible impact of unplanned life events that could affect their own and their families’ financial security. Underinsurance in Australia is a very real problem.

1 in 5 families will be impacted by an insurable event in their working lives.4 Most generally have some level of insurance, usually in the form of death cover that is attached to their superannuation. Often this amount is not regularly reviewed to meet your life situation. It is automatic cover given to you by your super fund and may not be enough to meet your needs.

People usually don’t like to think about illness and death. However it’s important to have a conversation with your financial adviser and to put a plan in place. Many Australians find themselves dealing with these matters every year:

48,500 Australians suffer a heart attack in any one year¹
1 in 3 men and 1 in 4 women will suffer from cancer in their lifetime²
43,000 people died from cancer in 2010³
1 in 6 men and 1 in 4 women will suffer a disability during their working life that results in taking more than six months off work.³

Our financial advisers can help you understand your needs and put a tailored plan in place to protect you and your family.

References:
1_ Heart Foundation, Australian Facts 2008: Heart, Strokes and Vascular diseases.
2_ The Cancer Council Australia, www.cancer.org.au, April 2009.
3_ National Health Survey: Injuries, Australia
2001 ABS Cat No. 43840.0 – Australian
Bureau of Statistics, 2003 – Based on
people aged between 35 and 65.
4_ Dr Kelly, S & Dr Vu, Q,N, February 2010;
The Lifewise/NATSEM Underinsurance
Report – understanding the social and
economic cost of underinsurance.

These risks could include;

Loss of income during an extended period of illness or injury, putting strain on the family budget and ability to pay the rent, mortgage, school fees and everyday living expenses

Extra costs incurred while you recover from a major accident trauma or “dreaded disease” such as cancer and heart disease.

Permanent income loss through long term illness or disability which could put all your future goals and aspirations at risk

The loss of ongoing family income support and therefore significant reduction in lifestyle to your family and dependants as a result of the key breadwinner’s premature death.

The viability of your business could be in jeopardy if you cannot work for an extended period. Being a small business owner means that your personal exertion is what usually keeps your business going. But what would happen to your business if you were unable to work for a prolonged period due to an illness or injury? While your business income would most likely be significantly reduced, certain business expenses such as rent and staff wages will still need to be paid.

We work with you to understand your specific and individual needs for protection against these risks. We help you work out what types of life insurances are best for your circumstances, the appropriate amount of cover you may need and show you how it should be structured for maximum effectiveness in terms of cost, tax, and impact on your cashflow.

We will then research and recommend appropriate insurance policies and help you to apply for and implement these from start to finish. Thereby saving you time and making the process as smooth and easy as possible.

You should be aware that not all insurance policies are the same. You may be aware from media coverage that you can purchase “off the shelf” cover instantly online or over the phone. We generally find that if a policy is easy to purchase, it is likely to be either restrictive (with many exclusions and reasons for the insurer NOT to pay), relatively expensive, or both.

Life Strategies can recommend policies from all major insurers and we are not restricted to a handful of “preferred providers”. Each client has different needs and we pride ourselves on researching the products available to offer a “tailor-made” solution, providing the broadest cover available for the most competitive premium.

Insurance is an expense no one likes to bear and so our role is to ensure you want to pay the premiums each year as it gives you security and peace of mind. It is also to ensure that you are getting good value for the cost.

We provide an annual review to remind you what you are covered for and to trigger reviews from time to time based on changes to your personal circumstances.

Our Insurance team is also here to assist you in the unfortunate event that you need to make a claim on your policies.