Are you prepared for illness or tragedy? Have you considered personal insurance?Your life plans can wind up being devastated as a result of illness or tragedy. We at iMoney Wealth Management can help by providing you with life insurance advisers. With iMoney Wealth Management you can feel assured that you will receive top notch professional service that will be designed to meet your specific lifestyle needs. Our advisers can provide you assistance with the acquisition of life insurance, income protection, total and permanent disablement, and trauma insurance.
When considering what insurance to purchase there are four main types to consider: Term Life, and Term Death insurance, and Total and Permanent Disablement.
Term life insurance will pay out in the event of the death of the insured. Term life insurance pays a lump sum in the event that the insured dies. Total and Permanent Disablement (TPD): additional Term Life insurance benefits. These benefits aim to provide a lump sum payment in the event that a person suffers an illness or injury which permanently incapacitates them and they no longer have the ability to work. Coverage can be provided to people working in a variety of occupations including a doctor, a dentist, a lawyer, a recruiter, an artist or a teacher.
Total and Permanent Disablement (TPD) insurance aims to pay off any mortgages or debts that you have, protect the business against the loss of sales and profits, provide an income stream, and provide money for home modifications that result from an accident or illness. TPD premiums are usually not tax deductible and payments are normally exempt from income tax but this can vary depending on the circumstances under which the policy was issued and whether it is arranged via superannuation. Total and Permanent Disablement can be offered as a stand-alone benefit as well or as ‘own occupation’.
Trauma, Critical Illness, or Living insurance: you receive a payment when suffer a specified major health trauma. Some conditions that would be covered by these policies are cancer, nervous system disorders, various accidents, loss of speech, and specific body organ disorders.
Detailed definitions are set forth in the product disclosure statement of the insurance policy. The aim of trauma insurance is to cover the gaps that are left between other insurances. In the event that someone has a mild heart attack and returns to work in two months they would obviously not be covered by term life insurance since they have not died. Additionally they are likely not be protected by TPD coverage and will be able to work again so their income protection insurance will stop paying when they return to work. In the event that you need to pay large medical bills or switch jobs trauma insurance is a valuable tool. Personal insurance such as trauma insurance offers a variety of benefits which include coverage for specialist or international medical car, home modification expenses, and avoiding financial stress during recovery. Premiums cannot be deducted from your taxes but fortunately proceeds are normally tax-free. One exception to this is when trauma insurance is part of a key person business insurance policy, when premiums are deductible and proceeds are taxable as ‘business revenue”.
Income Protection, Sickness and Accident, or Salary Continuance insurance allows people to have resources to protect themselves and their family. Your income is essential for protecting you and your family. Therefore -Income insurance is essential in ensuring in the event that you are disabled and are unable to work. With income protection will typically cover up to 87% of your annual taxable income if you are unable to work due to illness or injury. Premiums for this type of policy are normally tax deductible and any benefits you obtain from this policy are considered assessable taxable income. If you have existing cover to just 75% of your actual income you should know that it would be even less net after tax, hence call us now to upgrade your current policy.