Wealth Protection

Wealth Protection ….  Insurance

There is no point beating around the bush. Wealth Protection is what insurance does and compared to the rest of the OECD Australian’s are the most under under insured population in the western world.

Why is that ?

No one loves paying for insurance and in Australia
“she’ll be right” &  “it won’t happen to me”  is the mantra more so than anywhere else.   It can happen to you.

 

Behind the scenes, poverty is usually as a result of a serious accident or illness that costs a lot more than a few months off work. The loss of a mortgage, the inability to earn enough for a new mortgage, a widow with young children, the young man who was athletic now in a wheelchair – are all situations that contribute to wealth loss and inablility to generate money to overcome the loss.

BUT  – you can outsource that risk – & reduce the potential for massive loss.

It’s called insurance – and if you wouldn’t drive a new flash car without it – why walk, play sport, live your life without it ?  Additionally in Australia there is this tall poppy/scepticism syndrome that it’s not worth the cost….  In the U.S.A insurance is vital and appreciated, if you can afford it. In the U.S.A. there is no saftey net  - 

AND in Australia the safety net isn’t than big either.
What is the current Australian disability pension?  What is the criteria to get it ?

  • A few figures for thought……
    Many pople have some nominal life insurance cover (because it’s cheap) – but usually way too little.  However, very few have income protection insurance because it’s relatively expensive – but that is because it’s the insurance most likley to be claimed upon. The cost reflects the probability of claim and a payout.

 

  • The ratio of claims for insurance by type has been calculated compared to every death claim: (adjusted for level of coverage if every person had life / total disability / income protection / trauma insurances)

    Death…………                1

      Total Disability …..   1.5

      Trauma  ………..            3

      Income Protection … 31   

You are 31 times more likley to need and use Income Protection than die.

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My role is to assist with offering the best overall protection package – based on risk and cost that can give your the best level of cover for your circumstances.

My role is to explain the trade offs between one type of insurance vs. another vs. the cost. 

The chances are that you won’t want to pay for all of it – but you can make an informed decison about reducing the worst case scenario at a reasonable cost.  But there are cost effective ways to manage this and tax effective ways too. 

If you pay 3% of your car’s value for insurance – then surely you are worth 2- 3% of your own value to minise the worst risk….. Yes or No ?

Contact: 02 9934 8834