It will never happen to me! No-one knows! Serious accident and illness are often unexpected. What we do know is that you can put in place a contingent supply of money so that the financial implications are minimised. This will remove the uncertainty from otherwise sound financial plans.
Do you have a need for cover? Are there any mortgages which need to be paid off? Are there any business loans for which repayment is dependant on a particular person? Are there other loans for which repayment is dependant on income? Is your children's education prefunded, or will there be major payment in the future? Would the loss of a key person in your business financially affect the business? Would premature loss of life disturb your family's financial position? Life insurance is a cost effective way of protecting your family and assets.
Loss of Income (Income Protection Insurance)
Most of us just don't realise how much of a money machine we are. We can earn millions over a lifetime. If we were a machine we certainly would insure it. A consistent income stream is the lifeblood of families and business. You can insure your income for a very small percentage of your annual income. Is there a need to insure your income? If you are not independently wealthy, do you need your income to live on? Could you maintain your current lifestyle on social security benefits? Will your accumulated sick leave cover you for a long term illness? If you didn't have your income, could you maintain your superannuation arrangements? If you were only partially disabled with reduced income could you maintain your lifestyle? Would loss of income disturb your family's financial position? Income protection insurance is like having a reserve income that can come on tap just when you need it. Keeping up the cash flow even when you're down. Insurers for the continuation of income in the event of disablement by accident to illness. You can insure up to 75% of your earned income and also cover business overheads that still have to be paid when you are disabled. Real cost savings can be achieved by integrating your insurance with existing sick leave.
Loss of Life (Life Insurance)
Life is priceless, protecting it isn't! Life insurance is pure no frills protection that offers the highest cover for the least cost. Premiums are lowest when you're youngest and therefore more affordable, and rise gradually with age. Protection is available to age 80. Keen pricing has made this one of the leading products on the market.
Loss of Financial Reserves (Trauma Insurance)
Cancer, Heart Attack, Stroke and other major illnesses or accidents can stop you dead without killing you. Recovery rates are high, but expenses could destroy your financial reserves. Trauma insurance is one of the latest developments in life insurance that pays you money to relax and this in itself improves your chances. In the event of a major illness would a major lump sum cash payment help your situation? If you were on a reduced income could you afford to pay off your major financial obligations? Could you afford to seek specialised and expensive treatment for a major illness overseas? Would you worry about being a burden to the family if you suffered a major accident or illness? Would loss of savings and assets disturb your family's financial position? Could you as the business owner or partner still meet your liabilities if you were off work for a while? Trauma insurance can provide a very large lump sum of cash on diagnosis of a trauma while you are alive. Giving you more to live for. Pays up to $1,000,000 on diagnosis of the world's most serious and expensive medical conditions; or if you are diagnosed as having 12 months or less to live from any medical condition. In addition to cancer, heart attack and stroke, other serious medical conditions are also covered. This is the latest development in life insurance.