Insurance: Why do I need it?
As you get older, you start to accumulate stuff – good stuff, like cars, entertainment units, houses etc. – and less-good stuff, like extra financial obligations and increased costs of living.
You become more and more reliant on your ability to work and earn a consistent income to meet your financial commitments.
Getting appropriate insurance cover is like your financial back up plan for when you are unable to work due to illness, injury or death. There are certain times in everyone’s life when insurance becomes important, like when:
- You get married or divorced
- Buy a home or investment property
- Your debt levels increase
- You start a career as a tradesperson
- Change jobs or your salary increases
- You start a business – or sell one
A great benefit of setting up your insurance while you’re young, and before anything unfortunate happens to you, is being able to secure potentially lower premiums than those who are older and you may have more inclusions that you’re covered for. It can be too late to get insured once an illness or injury occurs so it’s best to ensure your future financial security with the right insurance.
Speak with the team at Ethica Private Wealth Specialists to get started with a complementary consultation.
Call (07) 5443 5577 or click here
Income Insurance (aka. Income Protection)
If you had a car accident or got really sick and you were off work for an extended time, how long could you keep paying the bills? What would you live on?
You might have some holiday leave saved up, and maybe some sick leave, but your employer isn’t going to keep paying you past that point.
Income protection insurance is one of the most important types of insurance cover for any working person. It can replace up to 75% of your income over a specified time if you can’t work because of sickness or injury. The payments you make for income protection insurance are often tax-deductible.
It’s not nice to think about, but imagine what would happen if you passed away? Would you leave a financial mess behind for your friends and family to deal with?
Life insurance gives your family an income and allows them to pay off debts in the event of your death, which helps during the grieving period.
For people with young children, extra money is often needed for after-school care and for domestic help.
Total and Permanent Disability Insurance (TPD)
If you had a major accident or a serious illness and the doctors told you that you’d never work again. What would you do? How would you afford to live? How could you handle the medical bills?
Total and Permanent Disability Insurance covers you if you suffer an accident or certain type of illness that means you won’t be able to work in the same capacity you’ve done in the past. You receive a lump-sum payment that will help you readjust your life, reorganise your priorities and look after yourself.
These days, it’s amazing the kind of things you can recover from with the right medical care. But what happens after you survive? Let’s say you had a heart attack or suffered a serious accident when you were driving or skiing or playing sport – how would you cope with the fallout from that trauma?
Whether you’re a tradesman or a dentist, this is vital for anyone operating a business, or in a business partnership. Business insurance incorporates life, trauma and income protection insurance in one policy.
Who is going to do the work if you’re not there?
Business Insurance protects your business, your personal assets and income from being eroded when the main income earner is injured or suffering from an illness.