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What is the role of risk insurance in your financial plan?

In life we expect to earn an income, grow our assets until we retire and use those assets over retirement.

What would happen if you lost the ability to earn an income or passed away, and your family had to draw down on your assets to survive?

This is where having risk insurance can help. Depending on the type of cover, it can fill the gap in assets, and replace your lost income. In other words, risk insurance can help keep you and your family on track financially should the unexpected happen.

Safeguard your financial future if the unexpected happens

‘Would my family be able to maintain their lifestyle if I no longer earned an income?’

If your answer to this question is no, you need to consider transferring that financial risk to an insurance company. There is a wide range of insurances that can help you mitigate your risk and provide peace of mind for you and your family.

Insurance can help your family maintain their lifestyle if life does not go to plan

Personal insurances worth considering include:

  • Term life insurance – pays a lump sum on the death of the insured

  • Total and permanent disablement insurance (also known as TPD) – pays a lump sum in the event of permanent disability due to illness or accident

  • Income protection insurance – replaces your income if you are unable to work due to sickness or injury by providing a monthly payment of up to 75% of your pre- tax income

  • Trauma insurance – pays a lump sum on the diagnosis of a specified non-pre-existing illness or injury such as heart attack, stroke, cancer and paraplegia

Our insurance portfolio construction process?

To help ensure your risk insurance plan is properly funded, we employ our disciplined eight-step insurance portfolio construction process.

We start by assessing your current situation – if the unexpected happened today, what would be the financial shortfall?

How much money would be required for you and/or your family to replace your income and pay for expenses?

We then develop strategies to help you transfer that risk to insurance companies and identify which types of insurances you require. We also help you qualify for tax deductions on the annual premiums where possible.

Next, we research reputable insurance companies to find the right insurance for your personal situation and needs. We will then obtain and compare quotes to ensure we recommend the most appropriate product for you. Of those insurances which meet your needs, we obtain a number of quotes to ensure we recommend the most cost effective products for you.

Once you’ve selected your preferred option, we finalise your risk plan and assist you with the application

This information has been produced by Australian Unity Personal Financial Services Ltd (‘AUPFS’) ABN 26 098 725 145, AFSL & Australian Credit Licence 234459. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making investment decisions. AUPFS is a registered tax (financial) adviser and any reference to tax advice contained in this document is incidental to the general financial advice it may contain. You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. Nothing in this document represents an offer or solicitation in relation to securities or investments in any jurisdiction. Where a particular financial product is mentioned, you should consider the Product Disclosure Statement before making any decisions in relation to the product and we make no guarantees regarding future performance or in relation to any particular outcome. Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and AUPFS and its related bodies corporate make no representation as to its accuracy or completeness. Published November 2018 © Copyright 2018

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