Anytime one commences building wealth it important to also protect that wealth. While it’s human nature not to want to think about one’s own death or disablement, imagine how or if your family or partner could cope financially if you died?

What if you were temporarily or permanently disabled and unable to earn an income but still had a mortgage and a household to run? Would you sell assets you worked hard to accumulate?

While these are confronting questions to some, planning for these unscheduled events and implementing the necessary risk measures can help ensure that the financial consequences of death and disablement are minimised.

A well designed wealth protection strategy using a combination various life insurances can help protect you and your family from the financial hardship death and disablement can cause.

Our advisers can design a wealth protection plan designed for you and your family which provides an appropriate balance between Wealth Creation and Wealth Protection. This means we won’t use all your surplus income for insurance and leave none for investing for your future.

A brief explanation of various life insurances is provided below:

Term Life Insurance

Term Insurance policies provide an agreed benefit on death or terminal illness of the life insured.

Total & Permanent Disability Insurance (TPD)

TPD benefits are paid if the insured is disabled as defined in the policy. Generally speaking it means that because of a sickness or injury the insured is unable to work in their own occupation for which they are suited by training, education or experience.

Trauma Insurance / Critical Illness Insurance

Trauma Insurance also known as critical illness insurance pays a lumpsum benefit if the insured suffers one of the listed events covered by the policy such as heart attack, stroke, cancer etc.

Income Protection

Income protection is also known as income replacement or salary continuance. Income protection pays a regular amount in the event the insured is unable to work in their occupation due to illness or injury. It replaces a percentage of the insured’s income while they are unable to work.

Business Expenses

Insurance is a variant to an Income Protection policy for business owners where in the event of disability approved business expenses are paid for up to a year.

Key Person Insurance

This type of insurance is designed to protect a business in the event of the death or disablement of a key individual. Such individuals are those who make a significant contribution towards the profitability or stability of the business.

Business Succession Insurance

Various combinations of life insurances can be used to help protect a business from death or disablement of a key person and these are tied together with a legal agreement to provide certainty as to when, and where insurance proceeds will go as well documenting any change to the agreed upon ownership structure.

General Advice Warning and Disclaimer – The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs and objectives and you should seek the assistance of your financial adviser before you make any decision regarding any products or information on this site. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Encore Accounting Pty Ltd nor its related entities, employees or agents shall be liable on any ground whatsoever with respects to decisions or actions taken as a results of you acting upon such information.