Many people don’t know where to start when it comes to personal insurance.
The types of personal insurance that may be appropriate for you, depending on your stage of life.
If you’re accumulating wealth…
The key to building up your wealth, whether through regular saving, buying your first home, increasing your super contributions or investing directly in shares, is to maintain and even increase your income.
So what would happen if you were suddenly no longer earning?
This is where income protection insurance (also called salary continuance) is worth considering. It allows you to receive up to 75 per cent of your income should you be unable to work for a period of time. It protects your wealth accumulation strategy while you recuperate, and you may also be able to claim the premiums as a tax deduction.
If you have a family…
Having a family means there are a lot of people depending on you and your ability to earn a regular income. Insurance can provide peace of mind from knowing that your family is protected should something unexpected happen. And when you consider that one in two Australian men and one in three Australian women will be diagnosed with cancer by age 85 , you can see how important it is to secure your family’s future. Life insurance can also be taken out within your super fund, with the premiums deducted from your contributions, so there is little impact on your after-tax income.
If you are close to retirement…
The risk of suffering a major trauma increases significantly around the time that you start thinking about your retirement plans. Having trauma insurance in place will help to protect you against the costs of such a life-changing event by providing you with an immediate lump sum. This can be used to cover your living expenses while you or your partner take time off work, pay down debts or cover any modifications required to your home or car.
Trauma insurance also helps to reduce the likelihood of drawing on the savings that you have worked so hard to build up before retirement.
Let us help…
To find out more about the different types of insurance, whatever your age or financial situation, contact GFP Wealth Group 4648 0431.
