Have you set up your risk contingency strategy - Insurance Protection Plan (IPP)?

In the same way that you set up an investment strategy by defining financial goals and quantifying the money you need to achieve them; your insurance protection plan also needs to be based on your goals for the lifestyle you want to achieve for you and your family if the worst was to happen. The home you want to live in, the lifestyle items you want to own, the ongoing income you and your family will require to ensure a comfortable life and the experiences you want your family to enjoy.

Only once you have identified the dollar amounts you require in case the unforeseen should occur, you can then be in the position, with the assistance of a Financial Advisor to create a tailored IPP that may include a combination of the following: 

• Life cover that will pay a lump sum on premature death or terminal illness
• Total and Permanent Disablement cover that will pay a lump sum if an injury or illness permanently prevents you from working again
• Trauma insurance cover that pays a lump sum upon diagnosis of a range of major medical conditions, and
• Income protection that pays an ongoing monthly income for short- or long-term periods of illness or injury.

Why is an IPP important to have?

 According to the Financial Service Council Life Insurance Awareness report, Australian Life insurance companies in 2019 paid over $12 billion out to 101,821 Australians. That is almost $33 million to 279 Australians and their families every single day, 365 days a year. Benefits paid were as follows:

•  For death cover there were 13.4 million covers in force, 97 per cent of lodged claims were paid and the highest cause of claim was cancer at 43 per cent;
• For Total and Permanent Disability (TPD) there were 11.1 million covers in force, 90 per cent of lodged claims were paid and the highest cause of claim was mental health at 25 per cent;
• For Income Protection/Disability Income there were 5.8 million covers in force, 95 per cent of lodged claims were paid and the highest cause of claim was accidents at 33 per cent;
• For Trauma insurance there were 1.1 million covers in force, 86 per cent of lodged claims were paid, and the highest cause of claim was for cancer at 58 per cent.

Could you imagine if the unforeseen occurred and you had the option do protect yourself and your family and you didn’t! A financial advisor can help identity and determine exactly what you need, but most importantly get all in place for you so you can have peace of mind. Why not consult with a Financial Advisor as soon as you can.