The importance of reviewing your personal insurance

Insurance & Wealth Protection

20-06-2024

The importance of reviewing your personal insurance

As we all know, life is full of surprises - some good and some bad. While it’s important to live positively in the moment and not get too caught up in all the ‘what ifs?’, the reality is that accidents, illnesses, and other unfortunate events can occur suddenly and without warning leading to significant financial burdens if you're not adequately insured. While nobody likes to think about bad things happening to their family, having tailored insurance coverage is a prudent financial decision and important aspect of wealth management that can provide valuable protection and peace of mind.  

Without insurance coverage, you may be responsible for paying out-of-pocket medical expenses, lose income due to disability, or have other unexpected costs which can quickly deplete your savings and impact your financial stability. Comprehensive insurance coverage can ensure that your family members are financially supported if you're no longer able to provide for them due to illness, injury, or death. It's important to consider your individual circumstances and potential risks, and then explore insurance options that align with your needs and priorities. 

Insurance needs to be reviewed regularly

There are significant benefits to reviewing your insurance policies regularly to assist in identifying opportunities to save money. You may find that you're paying for coverage you no longer need or that you're eligible for discounts or lower premiums based on changes in your circumstances or improvements in the insurance market. There are also new insurance products coming onto the market regularly which could be more competitive and tailored to your needs. 

In recent years the insurance industry has undergone significant changes to the pricing and  affordability of products due to various factors; including economic conditions, regulatory changes, technological advancements, and shifts in consumer behaviour. This has presented extensive opportunity to improve your current insurance policies. 

Partners Wealth Group offer the following Personal Wealth Protection and Business Risk solutions:  

  • Critical Illness Insurance: Also referred to as Trauma Insurance, this cover provides a lump sum payment if you become critically ill or injured and require extensive medical treatment. Critical Illness insurance can cover a vast range of diagnoses such as cancer, heart disease, stroke, accidents and provides an agreed lump sum payment to help cover costs associated with treatment and loss of income resulting from the illness or injury. 
  • Income Protection Insurance: Designed to replace up to 70% of your monthly income if you are temporarily unable to work due to illness or injury. Policies are tax-deductible and can be tailored to provide cover short or long term and after a pre-defined period. 
  • Life Insurance: Provides a lump sum payment to the beneficiaries of the policy if the life insured dies. Some policies offer accelerated death benefits or living benefits for policy holders diagnosed with terminal illnesses, allowing them to access a portion of the death benefit to cover medical expenses or other needs. 
  • Total and Permanent Disablement Insurance: Usually referred to as TPD insurance, this cover provides a lump sum payment if you become totally and permanently disabled due to illness or injury and are unable to return to work as a result. 
  • Key Person insurance: Is a life insurance policy that a company purchases on the life of an owner, a top executive, or another individual considered critical to the business. The company is the beneficiary of the policy and pays the premiums.  
  • Buy and Sell Insurance: Buy-sell insurance often use life insurance products to fund the potential buyout in the event of a business partner's death. In addition to the insurance policies, a legally binding contract known as a Buy Sell Agreement will be created which stipulates how a partner's share in the business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement stipulates that the available share be sold to the remaining partners or to the partnership.  

What type of personal insurance do I need?

It can be difficult to decipher the right amount of cover and best option for your personal wealth protection. Not all policies are created equally, and the quality of policies can vary in terms of what they cover and the benefits that they may pay, so it is really important to review the relevant Product Disclosure Statement and seek personal Financial Advice.  

An experienced Insurance Specialist or Financial Advisor can save you valuable time and money by presenting recommendations based on your specific requirements and budget. If you are due for an insurance review or are interested in investigating your insurance options our insurance specialist Ella Ledgar would be happy to assist you.  

Contact Ella today on eledgar@pwg.com.au 

 

This information is general in nature and is provided by Partners Wealth Group. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.