In determining your insurance needs we need to establish the potential loss that could result from various risks. We need to decide what risks can be retained and what risks must be transferred. Insurance cover is about transferring your losses to someone else (the insurance company) for a price.
Therefore we not only have to address the potential risks, but also the cost of obtaining cover. Not only do you need to insure your possessions such as your home and your car, but you also need to protect your most valuable financial asset – yourself.
Other people such as your family and/or your business partners need to be protected if they will suffer a financial loss in the event of your premature death. And you need to protect your own income if you happen to suffer a disability and are unable to work.
Term Life Cover provides your surviving beneficiaries with a lump sum to help them meet their financial needs. This lump sum is usually used to pay off debt and cover change of lifestyles needs. Without Life Cover families can be left in financial hardship. As well as family needs Term Life Cover can be used to insure Business Partners against financial loss should a Partner die prematurely.
Total and Permanent Disability (TPD) cover provides a lump sum payment if you become Totally and Permanent Disabled. The meaning of TPD varies between insurers but in general terms it means being unable to work again in your usual occupation or an occupation you are suited to by way of qualification, education or experience. This lump sum can be used to pay off debt and/or cover any medical or change of lifestyle costs.
Trauma Cover provides a lump sum payment in the event of you being diagnosed with one of a specified range of critical illnesses or injuries. The list of conditions varies between insurers but common conditions are cancer, heart attack, stroke, and paralysis.
Income Protection provides you with a regular income if you are unable to work for a period of time due to sickness or injury. You can generally insure for up to 75% of your earned income and there are a number of options available relating to waiting periods and benefit periods. Income Protection ensures you are able to protect your income and continue to meet your living expenses even if you cannot work.
Business Expenses Insurance is designed for people who are self-employed. It provides for a regular payment to cover the fixed costs of running the business should you be unable to work for a period due to sickness or injury.