Have you ever wondered what would happen to you, your family or your business if you were ill or had an accident? Most people are not prepared for the financial challenges and emotional stress that can follow these turbulent events.

It’s human nature to assume that bad things only happen to other people. This assumption is not a responsible solution and is a terrible risk to you and your family’s financial future. Many Australians have some type of risk insurance cover in their superannuation, but rarely do they review it or ensure that it’s right for their changing situation.

During a stressful time, the last thing you want to think about is whether you can afford to pay the bills now and into the future. And if your partner needs to support you, any second income may also take a hit. Even a few months of no income could put serious pressure on your financial position and relationships.

Income Protection

Income protection insurance pays an income to you if you are unable to work due to an accident or illness. The income is usually 75% of your pre-disablement income and is payable after a “waiting period”. You choose the waiting period to suit your needs – for instance, if you had a lot of unused leave you could choose a longer period.

Income protection is particularly valuable for self-employed people, casual workers or anyone else who relies on their income but has no sick leave. You will be required to provide evidence of your usual income when taking out a policy.

The income will be paid until you recover and return to work or for a “benefit period” – this can be as short as one year or up to age 65. Some policies pay a rehabilitation benefit to help ease you back to work.

Income protection insurance premiums are tax deductible.

Life Insurance

Unfortunately for all of us, death is one of life’s certainties. It’s not a thought we consider very often but it is well worth expert advice and consideration of the impact.Choosing the most appropriate life insurance is important but can also be confusing.

Life insurance allows you to help support your loved ones even after you die, by helping to continue payments of expenses whether your mortgage, school fee’s or the many monthly costs. It’s important to consider how many debts you have, the future impact of your children’s education and your families continued lifestyle.

Total & Permanent Disability Cover (TPD)

This type of risk insurance provides financial protection should you become totally and permanently disabled.

TPD insurance helps to cover the expenses of any rehabilitation, cost of living, outstanding loans and debt, care services to help ease the pressure on the family.

There are different types of total and permanent disability cover and our financial advisor will help to guide you through these.

Trauma Insurance

Trauma insurance also called critical illness insurance pays a lump sum payment in the event that you are diagnosed with a serious medical condition or disease such as cancer, a heart attack or stroke. The benefit is paid when diagnosis is confirmed. This can help to manage costs and expenses during a challenging period and helps to reduce the unwanted stress and anxiety whilst you deal with the trauma.

Leenane Templeton Wealth Management Pty Ltd is a Corporate Authorised Representative of LT Advice Pty Ltd ABN 21 637 033 286 | Australian Financial Licensee 523026.  Click here for a copy of our financial services guide