Creating and protecting your wealth
  
  01.04.2020

Protection From The Unexpected

 

No-one plans to fail, but many fail to plan.
 
You most likely have taken years to build the lifestyle you and your family have grown accustomed to and applied a lot of time and sacrifice into your investments. Why put your lifestyle (and your family's) in jeopardy? The purpose of insurance is simple. It is to allow you to cope with the financial impact that death or disability can cause.

 

The risks are real

 

Cardiovascular disease is the leading cause of death and disability in Australia, claiming the lives of over 45,000 people per year, or 34 per cent of all deaths. (1)

 

Stroke is a leading cause of long term disability. Around 60,000 Australians will suffer a stroke each year or one stroke every 10 minutes. (2)

 

It is expected that 1 in 3 men and 1 in 4 women will be diagnosed with a malignant cancer before the age of 75. (3)

 

Out of 3.1 million people aged 45 years and over who have retired, one quarter (24%) were forced to retire due to 'sickness, injury or ill health'. (4)

 

Myth - Social Security or the Disability Pension will look after me.

 

Social Security will pay a maximum Disability Pension of

 

  • $569.80 per fortnight for singles 
  • $475.90 per fortnight for partnered persons (5)

 

Would this be enough to maintain your current lifestyle?

 

Myth - Workers' Compensation will cover me.

 

Workers' Compensation will only cover you for accidents or injuries that occur during working hours or for an illness that is a direct result of your employment.
If your illness or injury is covered by workers' compensation you should be aware that the benefit is capped under the different state regulations. In NSW for example it is capped at 26 weeks. (6)

 

It won't happen to me

 

Rod, 48, was a highly successful barrister before suffering a brain haemorrhage, which left him with a permanent speech impairment and restricted movement in one leg. While his thought processes were still as sharp as ever, his slow and slurred speech put an end to his brilliant court room career, not to mention a long period of rehabilitation and speech therapy. The stroke may have put an end to his career, but thanks to his Income Replacement and Trauma insurance policies he could maintain the lifestyle that his work once afforded him. Rod and his family could continue to have the best of everything - live in a comfortable home, in a good suburb, keep the holiday home, go on overseas holidays every year and keep the children attending the selected school of choice. A Trauma Insurance Plus policy provided the funds to pay out his two property loans and cover some negatively geared exposure. Meanwhile, an Income Replacement Insurance Plan provided Rod with an income stream, allowing him to concentrate on his recovery without financial pressu re.

It makes sense, so what's your next step?
 
 
Contact SME Financial Services' Risk Adviser who can assist you to understand your protection needs and the real cost for you personally. Together, you can create a plan to suit your individual circumstances.
 
The information provided on this page is for general information only. For personal advice you need to speak with an SME Financial Services Risk Adviser.
 
Source
  1.   Latest mortality data 2006, Australian Institute of Health and Welfare 2006
  2. " What is a Stroke??: Facts, figures and statistics," National Stroke Foundation website, 2009
  3. " Australia's Health 2008", Australia Institute of Health and Welfare 2008 
  4. " Retirement and Retirement Intentions, Australia July 2006 to June 2007", Australian Bureau of Statistics 2008 
  5. Centrelink website www.centrelink.gov.au , July 2009 
  6. NSW Work Cover Benefits Guide 2009
 
 
 
News & Updates

Now is a good time to invest: PIPA



Home values to rise


Archive