Without insurance, the wealth you’ve built can rapidly erode as a result of an accident, illness or death. These are the questions we prefer not to think about, but they can dramatically affect the lives of our loved ones.
What would happen if you died? Would your family be able to survive financially and continue servicing your debts?
What would happen if you were injured, fell ill or were unable to work for a long period of time? How would you and your family survive? Would you have to sell the house?
It’s possible to minimise the financial loss to your family or business by putting in place appropriate risk cover such as:
Our financial advisers work with you to ensure your needs are met with the appropriate amount and type of risk insurance cover.
Bob, 35, is an engineer earning $60,000 a year. He’s married to Ruth, 35, and they have two children aged five and three.
Ruth currently stays at home caring for the children. Bob and Ruth have a $150,000 mort-gage, $5,000 owing on credit cards, and a car loan of $5,000.
Bob’s Superannuation includes $60,000 of life insurance cover. Bob is worried that if something happened to him, his family would be in financial difficulty.
Insuring for peace of mind
After speaking to his financial adviser, Bob decides to take out a $1 million life insurance policy and $300,000 trauma and disability insurance.
When combined with the existing life insurance he has under Superannuation, if Bob dies unexpectedly Ruth and the children will have $900,000 to live on after all debts are paid.
Also, if Bob was to suffer from one of the medical conditions specified in his trauma insurance policy or suffer a total and permanent disability, the lump sum he receives would help meet his medical treatment costs, hopefully without the need to dip into the family’s savings or go further into debt.
Bob’s adviser also suggests he consider insurance for Ruth.
Although she is not working, she makes a valuable contribution through running the household and looking after the children. His adviser points out that if Ruth died unexpectedly, Bob would need extra money to arrange for the care of his home and children.
As a result, Bob decides to take out $500,000 life cover and $300,000 trauma cover for Ruth as well.
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