Protecting your wealth

You have worked hard to gradually build your wealth. Now you need to protect it from diminishing due to unforseen circumstances or events.

Consider the consequences of not being able to work for six months, or a year, or more as a result on illness or injury. Or, worse still, the death of the family's breadwinner. While nothing can compensate for the emotional loss that such a catastrophe causes, it is possible to protect your family's finances by putting in place appropriate personal risk insurance.

CommInsure has prepared an invaluable presentation called Facts of Life which will give you plenty of good reasons to ensure that you have the right amount of cover.

The diagram below illustrates that only about one third of men and just over a half of women will be free of critical illness before turning 70*. These are sobering statistics, and are a reminder that life can often throw in a few curve balls. No one expects sudden death, accident or illness ? but what if something did happen? How would you and your family cope financially?

You can obtain more information and explanactions on the types of insurance available from the independent Lifewise website.

Types of Insurance

• There are various types of risk insurance that are designed to protect your income stream in the event that you are unable to work. They primarily differ in the type of event or illnesses that they cover.

• Life Insurance

  Life (Term Life) Insurance provides a lump sum payment for your family to ensure the plans you had for them can be achieved in the event of your death. It also enables the financial obligations of your business to be met.

• Total & Permanent Disability

  Total and Permanent Disability (TPD) Insurance provides a lump sum payment if you suffer an illness or injury and are permanently unable to work. This will help you maintain your current lifestyle whilst paying the additional expenses that arise as a result of an ongoing illness or injury.

• Trauma

  Trauma (Critical Illness) Insurance provides a lump sum payment on diagnosis of predetermined list of major medical traumas, and will help you financially recover from such a crisis. It will enable you to obtain the best medical and rehabilitation care and also change your lifestyle if you wish.

• Income Protection / Salary Continuance

  Income Protection (Salary Continuance) Insurance provides a regular income replacement if you suffer an injury or sickness and are temporarily unable to work. This will help you maintain your and your family's lifestyle until you are able to return to work.

Case Studies

• Case Study - Trevor

  At 26, Trevor was hard worker, had a good job and enjoyed life to the fullest. However he had no formal financial plans, he thought there was plenty of time for that. Then a car accident changed everything overnight.

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