Insurances
Are you and your family adequately protected if something unfortunate was to happen to you or your partner?
At ARA we can undertake a review of your situation to determine whether you are under or over insured and then advise on the most appropriate and tax effective structuring as well as provide quotes and recommendations on products that are superior within the industry as well as being cost effective.
Risk Insurance can be any of the following:
- Life Insurance
- Temporary and Permanent Disability Insurance (TPD)
- Trauma
- Income Protection
Do I need insurance?
Life Insurance
- On average, there is one death in Australia every three minutes and 36 seconds.
- One in three women and one in four men will be diagnosed with a malignant cancer in their lifetime.
- Over 1,600 people die on Australia roads every year, most aged 26 – 59 years.
- Cardiovascular disease claims nearly 50,000 lives per year, representing 34% of all deaths.
Life cover provides financial protection to those you care for most. Should the worst happen, it pays a lump sum benefit to your loved ones. Still, many Australia’s don’t take out insurance protection because of some common misconceptions:
"I have enough savings”
60% of families with dependents will run out of money within a year if the breadwinner dies.
“My Life Cover in my default super fund will suffice”
Life cover inside super often only represents 20% of the cover required.
“It doesn’t matter; I’m not the main income earner”
Child care and home help provided by a ‘stay-at-home’ spouse could be worth more than $75,000 per year.
Temporary and Permanent Disability Insurance (TPD)
- 2.6 million Australians aged under 65 are living with a physical disability.
- Australians suffer around 60,000 strokes per year or roughly one stroke every 10 minutes.
- About 88% of stroke survivors live at home and most have a disability.
- Over one million Australians need assistance with core activities (such as communication, transport and self-care) due to severe disability.
Count the number of years to your retirement. Now, multiply this by how much you earn. In the event of permanent disability, this is the amount of money you could no longer provide for your family. Still, many Australians don’t take out insurance protection because of some misconceptions:
“’I’ll receive a disability pension from the government”
The disability pension only provides around 20% of the average Australian wage.
“My TPD Cover in my default super fund will suffice”
Insurance cover inside super often only represents 20% of the cover required.
Trauma / Critical Illness Cover
- In 2010, an estimated 114,000 new cases of cancer were diagnosed in Australia.
- More than 60% of cancer patients will survive more than five years after diagnosis.
- Two out of every three people that suffer a first time stroke will be alive one year later.
- About 88% of stroke survivors live at home. Most of them live with a disability.
- Stroke costs Australians an estimated $2.14 billion every year.
Australians are suffering an increasing incidence of cancer. In addition to this, we’re continuing to experience high levels of heart disease and stroke. Advances in medical science mean we now have a greater chance of surviving these conditions. But treatment can be drawn out and expensive – while forcing patients to take months or even years off work. Still, many Australians don’t take out insurance protection because of some common misconceptions.
“My private health insurance will cover me”
The average household cost of cancer is $47,000. And, while health insurance helps with medical treatments and hospital expenses, it does not cover some specialist therapies, ongoing treatment needs or the immediate care that is often required.
“I have Total and Permanent Disability (TPD Cover)”
Nowadays, serious illness doesn’t necessarily result in a total and permanent disability which will mean you cannot claim on your TPD cover. Advancements in medical science mean that it is now possible for patients to recover their original lifestyles. Even so, the financial costs can still be significant – which is why Trauma or Critical Illness cover is vital.
Income Protection
- 2.6 million Australians aged under 65 are living with a physical disability.
- Australians have a one in three chance of being diagnosed with cancer before age 75.
- 690,000 Australians were injured at work between 2005 – 2006, with 43% not receiving any financial assistance.
- More than 60% of Australians will be disabled for more than one month during their working life.
- More than 25% of Australians will be disabled for more than three months during their working life.
Without an income, mounting debts can cause additional stress. How long could you afford to cover your expenses, without completely draining any savings safety net? A health setback doesn’t have to affect your financial wellbeing. Income protection will compensate you for up to 75% of your wage for any time taken off work due to sickness or injury. Still, many Australians don’t take out income protection insurance because of some common misconceptions:
“I’ll be covered under Workers Compensation”
Workers Compensation is very limited. It only applies if you are injured during working hours or for illness directly resulting from your employment. If you’re self-employed, you may not even have this cover.
“I can’t afford it”
Income Protection premiums are generally tax deductible and can cost less than $4 per day.
ARA Financial Planning Services Pty Ltd is a Corporate Authorised Representative (No. 1277898) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969.
Australian Financial Services Licence (AFSL) No.223135.
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