Life insurance and disability insurance

The glamour of wealth creation often takes priority over the more basic requirement – the need to protect it. In instances of death, disease or trauma, your wealth can quickly disappear which can lead to severe financial hardship to your family.

Disability insurance provides you with funds for rehabilitation and therefore the ability to look after your family and your financial responsibilities even if the worst should happen.

Our StrategyOne Financial Planners give advice that incorporates your current financial position and cash flow, your asset-to-debt ratio, and your investment and business interests.

Insurance through your super fund

Life insurance and disability insurance through your superannuation fund is known as group cover, which is an attractive option to people who may not otherwise be able to afford it, such as those with an existing condition or a high-risk occupation. Often clients are underinsured because of the impact that taking out cover has on cash flow. By insuring through a super fund, you can make sure you are appropriately covered without a major impact on day-to-day cash flow. Often the level of cover is set at a default amount and is frequently unknown to the recipient.

However, insurance through your super fund has its disadvantages; namely, that the automatic or default level of cover may be insufficient, leaving the client heavily underinsured. Someone who leaves a group scheme later in life without some form of continuation right may have difficulty obtaining new cover. There may also be a delay in paying out your entitlement under group cover, which can cause problems when cash flow is an issue.

The alternative is insurance held outside of super. There are numerous plans available, and more coming onto the market every month. Our Financial Planners can steer you through the pros and cons, terms and conditions of all policies to ensure you choose the right one appropriate to your circumstances.

The problem of underinsurance

It is not enough to have insurance; the underinsurance gap for Australian families for death cover may be as much as $1.3 trillion according to Financial Planning Magazine. This gap is of great concern – at no other time is it more important for your family to be financially secure than following the emotional upheaval of your disability or death.

Some insurance premiums are tax deductable and others have lump-sum payouts that are tax-free. The Financial Planners at StrategyOne can advise on a plan that is suitable to your circumstances. Life doesn’t always follow the best-laid plans but peace of mind can be assured with the right insurance cover.

Financial planning for life insurance and disability insurance

Read real life client case studies of how life insurance and disability insurance are applicable to:

StrategyOne Advice Network is an authorised representative of Fitzpatricks Private Wealth Pty Ltd, AFSL No. 247429, ABN 33 093 667 595 (“Fitzpatricks”).

This information is of general nature only and is not intended as a personal advice. It does not take into account your particular investment objectives, financial situation and needs. Before making a financial decision you should assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. We recommend you consult a professional financial planner who will assist you.