4 Life Insurance Covers To Consider to Best Protect Your Wealth

Most working Aussies spend the majority of their time and effort working out how to grow their wealth. But are you doing enough to protect your money so you can truly achieve financial security?

Australians spend the majority of their lives working and earning money to support their livelihoods and financial goals.  

In fact, the average person will spend 90,000 hours at work over a lifetime.

This works out to be about a third of your lifetime. It’s fair to say that protecting your hard-earned money should be essential. 

That’s where the critical idea of a wealth protection strategy comes into play, as it can help safeguard your finances. A wealth protection strategy primarily involves taking out life insurance cover that suits your needs. 

Life is full of unexpected events. Many unexpected situations can push people off track from their savings. It’s important to better prepare yourself for the unexpected to minimise potential financial stress.  

After all, your personal financial health will change as your life unfolds, so it’s crucial to have the right wealth protection insurance that suits your lifestyle. 

Here Are 4 Different Types of Life Insurance Covers to Consider:

1. Life Protection

An important and quite popular type of insurance to consider is life protection cover. 

Life cover can also be called ‘term insurance’ or ‘death cover’. By obtaining life protection cover it provides a lump sum of money to those you nominate as your beneficiaries when you pass away.

This insurance can provide financial support for your children, spouse, parents and even your business.. This may seem like something that only the elderly need, but if you have people who financially depend on you, life cover can give them support when they need it the most. 

If you need guidance on deciding if you need life protection cover and how much, it may be beneficial to seek a financial adviser. They assist you in finding the right life protection policy cover that can cover your financial needs. 

2. Income Protection

If something unexpected happens that leaves you unable to continue work due to a disability, illness, or injury, then income protection can become a critical tool. It can cover your financial needs, as it pays up to 85% of your pre-tax income for a set period of time. 

This set time period will depend on your policy but most insurers cover you for between 2-5 years.

This particular wealth protection cover can eliminate the financial stress that can come with hospital bills and everyday costs, and instead allow you to focus on recovery, while maintaining your ongoing lifestyle costs. 

Not sure if you need income protection?

Consider the following questions:

  • Do you have enough savings or an emergency fund that would allow you to get by for more than a few weeks without your regular income?
  • Do you have ongoing financial commitments such as rent, a mortgage, or a business?
  • Do you have financial dependents who rely on your income? Kids or your partner?

Think about what your life would look like if you had no income for 6 months. Income protection can help give you a normal lifestyle and take away your financial stress when you need it most.

3. Total and Permanent Disability (TPD) Insurance

Your income protection helps to cover you for a short period of time but in the event you will never  be able to return to work, TPD insurance can support. 

TPD insurance provides you financial income in the event you are in an accident or have an illness that leaves you permanently disabled. 

Different insurance providers can have a different definition of what it means to be totally and permanently disabled but if you are wanting to purchase TPD cover, it’s important to consider the costs of your everyday living expenses you’ll need to have covered if you were unable to work again. 

These could include:

  1. living expenses for you and your family
  2. repaying debts such as a mortgage or credit card
  3. medical and rehabilitation costs
  4. savings you want for retirement

Keep in mind that this only applies to people who can never go back to any work due to their disability.

4. Trauma Insurance

If you were to unexpectedly acquire a critical illness or serious injury, making it extremely difficult to continue to work, trauma insurance can provide financial support to you and your family during this time by covering any medical and rehabilitation costs.

In a difficult time, the last thing you want is to have to worry about money. Trauma insurance can make sure that doesn’t happen.

Trauma insurance can also cover any of your living-related expenses throughout your recovery phase. This could include occupational therapy needs, or even paying off debts; such as your mortgage. 

Not all medical conditions are covered by trauma insurance but some of the common inclusions are:

  1. cancer
  2. heart attacks
  3. strokes
  4. loss of sight
  5. loss of limbs 

Are You Looking for a Financial Advisor or Life Insurance Consultant?

Your health and wealth are two of the most important, powerful elements of your life. It’s crucial to manage these key aspects if you want to ensure you’re secure and protected no matter what happens in your journey.

Poole Advisory is a financial advice practice in Bowral striving to provide a wide range of solutions to clients with different needs—from estate planning, financial advice, life insurance advice to honing down the best investments for retirement

Make an appointment with us today and see how we can tailor our financial services to help you lead a life of financial fulfilment.


Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917


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