Are you adequately insured? Ensure you and your family are financially protected;
At Reedy Advisory, we will
design a risk management plan to financially protect you from injury, illness, death or disability in a
cost and tax effective manner. When putting together a risk management plan, we might recommend the following types of personal insurance: Life, Total & Permanent Disability, Income Protection and Trauma.
Life insurance pays out a lump sum benefit in the event the life insured passes away. This type of insurance can be paid for by superannuation but there are tax and cash flow considerations when structuring Life insurance. It is also important to ensure a beneficiary is correctly nominated on the policy and other estate planning issues have been considered.
Total & Permanent Disability (TPD) insurance pays out a lump sum benefit in the event the life insured is unable to work due to total and permanent disablement. This type of insurance can also be paid for by superannuation but there are tax and cash flow considerations when structuring TPD insurance. There are features such as 'Own Occupation' versus 'Any Occupation' that requires the guidance of an experienced insurance adviser.
Income Protection insurance pays out an income stream for a fixed period of time (benefit period) after the life insured has been unable to work due to sickness, injury or disability for a set period of time (waiting period). Income Protection can also be paid for by superannuation but there are tax and cash flow considerations when structuring Income Protection insurance.
Trauma insurance pays out a lump sum benefit in the event the life insured experienced a trauma event. A trauma event is a specified list of medical complaints that can be found in the relevant insurer's Product Disclosure Statement. The most common trauma events include heart attack, stroke and cancer.
All personal insurances have complex features and can be structured in many ways to minimise tax and to reduce the impact on cash flow while ensuring retirement savings are not eroded. We recommended you obtain Financial Advice when considering personal insurance.
