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Risk Insurance

Risk insurance is designed to protect you from the unexpected and it plays an important role in long term wealth management. Ensuring that you have the right amount of insurance cover is important so that your loved ones are not adversely affected at a time when they most need support.

Your biggest asset is YOU and YOUR ability to generate an income.

There are a number of key insurance areas where your Equiti adviser is able to provide assistance.

The various types of risk insurance policies may be categorised into:

Term Life Insurance

Term Life pays a lump sum payment upon the death of the life insured and is designed to provide protection and financial stability to their loved ones.

In the event of the person’s death, the lump sum will assist in paying off any outstanding debts such as a mortgage and removing any additional financial pressures. An adequate level of term life insurance should provide an excess amount over debts to ensure that family members may be adequately provided for.

Scenario:
Leigh was widowed at 37 when her husband died in a car accident.

Leigh and her husband had three children and had just moved to Sydney and bought a property. Leigh received a lump sum payment of $700,000 when her husband died. This meant that Leigh was able to pay off the mortgage on the property and still had a significant amount of money left over to help provide for the children

Total and Permanent Disablement Insurance (TPD)

Since money is the last thing that you would want to be thinking about when facing a permanent disability, an option with Term Life Insurance is to take an extension of Total and Permanent Disablement Insurance (TPD).

TPD insurance provides a lump sum payment in the event of the life insured becoming totally and permanently disabled and likewise may be used to ensure that family members are not financially burdened in the event that their primary income producer is no longer able to provide for them

Trauma Insurance

After a major trauma, the only thing you should be focusing on is your recovery. Trauma policies pay a lump sum in the event of an injury or sickness (e.g. cancer, heart attack, stroke).

Trauma insurance can be taken as a stand alone policy or may also be attached to a Term Life insurance policy.

Scenario:
At 43 Simon suffered a completely unexpected heart attack. Simon and his wife have three children.

Simon had set up a Trauma Insurance plan three years earlier to cover himself and his family in the event of a serious illness. Simon and his family received an initial trauma payment of $50,000 to help with hospital bills and associated unexpected expenses.

They also received a further payment of $3,500 per month for twelve months during his recuperation. Simon has now returned to work

Income Protection

Your most valuable asset is the ability to produce an income and this must be protected.

As one of the most crucial risk management insurance products, an Income Protection policy is designed to replace an income stream if the insured is unable to work due to sickness or injury.

There are basic policies, which might be limiting in the time of a claim, and then there are extended, or plus policies which are preferred.

Income Protection is an extremely flexible policy, you choose the waiting period (how long you must be unable to work before the insurance begins to pay) and you choose the benefit period (how long the policy will pay you if you are unable to work).

Income protection cover can be tailored to cover you and your specific needs.


With so many risk insurance products on the market and with no corporate affiliations to a specific insurance company, your Equiti adviser can access the entire Australian risk insurance market and help you to source the most appropriate policy for you.