Introduction

Personal insurances are designed to provide protection from the financial consequences of death or disability. They therefore form an important part of most financial plans. Here, in brief, is how they work.

Introduction

Personal risk management is a critical foundation stone of any financial plan. The key personal insurances are:
• Life insurance.
• Total and permanent disability insurance (TPD).
• Income protection (IP) insurance.
• Trauma insurance.

Each of these insurances plays an important but different role in protecting you and your family from the financial consequences of death or disability, and the appropriate mix of cover depends to a large extent on where you are on your journey through life.

Introduction

You have insurance cover in your superannuation right? You probably think you’re adequately covered, yet if something were to happen to you, you might be in for an unpleasant surprise – and by then it might be too late.

I met a new client recently who was in quite a state of distress. Maryanne is 38 and a stay-at-home mum with three children all under the age of 10. She explained that her husband, Simon, had been killed in a car accident.

Simon had done the right thing by his wife and kids – he’d taken out life insurance through his superannuation.

Unfortunately however, Simon had not sought professional advice. He’d guesstimated how much cover he might need with the result that the insurance payout wasn’t nearly adequate. Of course Maryanne received Simon’s superannuation as well, but as he was only 40, the accumulated value was not substantial.

Introduction

Risk Management Plans don’t only apply to businesses – every person and family should also have a plan to help them cope in the event of an unexpected crisis.

No doubt you have insured your car as the risks of damage are obvious to you on a daily basis. You will almost certainly have insured your home and contents against fire, burglary or storms. But what about your greatest asset: your income?

Introduction

Everyone faces some level of financial risk but most people hope that catastrophe will strike someone else. Sadly ‘someone else’ may be you. This is why it is critical to review your insurances regularly and ensure they still meet your needs. Would you be able to cope with the risk of inadequate cover? Have you got too much cover? If circumstances have changed, have you adjusted your insurance?