Why do we need Risk Insurance? The principles behind financial planning are twofold and put simply, it is a method to create wealth and protect wealth. One of the most common methods of protecting wealth is to purchase insurance. Insurance should be viewed as a means of providing the capital base and income you would need to continue living in the manner that you desire if an unexpected event happens (i.e. death and accident).
Planning your financial future can easily be compromised if no attention is paid to the management of the various risks that you are exposed to each day. Such risks include:
- Your health
- Emotional, physical or mental trauma
- Death or serious illness
- Loss of income as a result of temporary or permanent incapacity
Our advisers can analyse and assess your risk management needs and advise on and find appropriate policies such as:
- Life insurance
- Total and permanent disability insurance
- Income protection
- Trauma insurance
- Key person insurance
- Business expense insurance; and more.
Other considerations, from a tax perspective, should include who holds the policy, who should receive the benefits and within what structure to hold the policy i.e. superannuation, personally, via a corporation etc. You should be aware that each policy’s premiums and benefits would be treated differently from a tax perspective depending on those arrangements.