Our Insurance Philosophy
Our insurance philosophy is about how to best mitigate against those unthinkable situations that would otherwise impact your personal and financial goals, while carefully balancing building a risk management plan that is sustainable and provides you peace of mind.
We want to understand your values and the risks you face, be it loss of income, your ambitions for your family or your business – whether or not you are able to see it through. We work with you to develop a plan which addresses what risks can be managed and how to do that in a way suitable for you, like retain it, or transfer it away, even tax effectively.
For risk that is transferred away from you, we have access to an extended range of insurance providers and we consider, in the context of our long term relationships developed through 35+ years experience:
- The policy definitions
- The strength and claims paying capacity of the insurer
- The claims paying history of the insurer
- The premiums charged (over time; not just the short term)
A solid risk management strategy underpins every financial plan and we are here to help you at each step of the way.
- Income Protection
- Life Cover
- Total and Permanent Disablement
Business InsuranceBusiness Expenses
- Keyperson Cover
- Buy-Sell and
Probably your greatest asset is your ability to
earn an income, especially if you are young.
Income Protection pays a monthly amount while you are unable to produce an income as a result of illness or injury. Policies may cover up to 75% of your income if you are totally or partially disabled. By replacing your regular income, Income Protection payments can help you and your family maintain a level of financial normality.
Income Protection gives you the financial freedom to focus on your recovery or treatment, without worrying about regular expenses. Income Protection policies are very flexible and can be tailored to suit your individual and family circumstances. Your financial adviser can help you choose the most appropriate ‘waiting period’ – the time between becoming unable to work and receiving your first income protection payment – and ‘benefit period’ – the period during which you receive your income protection payments.
It is important to note that definitions vary from policy to policy and this can have an impact on your ability to claim under “Total Disability” and “Partial Disability” provisions. You should ask your adviser how this may affect you in your occupation and in various circumstances because it could mean the difference between a policy paying or not paying.
Life Cover provides financial support, giving your loved ones financial security and freedom to make choices about their future.
Life Cover is also commonly known as 'term life' or 'life insurance'. It provides a lump sum on your death or on the diagnosis of terminal illness.
The right amount of Life Cover differs from person to person. With the help of your adviser you can calculate an appropriate sum insured for your circumstances which will reflect your debts and the ongoing income requirements of your dependants.
Some life insurance companies offer added features and benefits, so be sure to ask us about extras such as a funeral advancement benefit and grief support services.
Trauma insurance – or Recovery insurance – provides you with a lump sum on the diagnosis (or occurrence) of one of a list of specified serious medical conditions and procedures.
Each insurance company maintains their own list, but they generally include serious medical conditions such as cancer, heart attack or stroke.
You can generally use the trauma payout however you choose, for example to cover medical costs and treatment or to reduce debt. Some people choose to make a permanent lifestyle change, such as reducing their working hours, so they can spend more time with family.
If one of your financial goals is to fund a comfortable retirement, then you may decide to invest additional money in superannuation. Superannuation is considered one of the most tax-effective ways to save for retirement.
Medical definitions vary between insurance companies, so make sure you do your research and seek assistance from your adviser when choosing a policy. Some companies also offer partial payments, depending on the severity of your condition.
Your financial adviser can help accurately assess your circumstances and calculate the appropriate level of cover to protect you and your family.
TPD insurance provides a lump sum if you suffer an illness or injury that leaves you Totally and Permanently Disabled.
TPD insurance benefits are often used to eliminate debts, pay for medical expenses or fund any permanent lifestyle changes resulting from disablement.
TPD definitions can vary depending on the particular product and insurance policy. Most companies allow you to choose whether you want coverage against being unlikely to be able to ever work again in your ‘Own Occupation’, or in ‘Any Occupation’.
Come and speak with us to ensure that you have the most appropriate Policy Definition to ensure you can maximise your chances of a successful claim. Hopefully it will never come to that, but isn’t it better to be prepared and have peace of mind than to find out at Claim time that a superior product was available which would have resulted in a successful Claim Payment?
Business Expenses insurance pays a monthly benefit to cover fixed business costs if you suffer an illness or injury and are unable to work.
It works on a similar principle to income protection, as it pays a monthly benefit. However, its purpose is significantly different.
Business Expenses insurance is designed to cover the fixed day-to-day costs (up to the monthly benefit) of running your business in your absence, such as the cost of a locum, rent, staff salaries, equipment expenses, loans and other business overheads like electricity and cleaning bills.
Like Income Protection, Business Expenses policies are very flexible and can be tailored to suit your individual needs and circumstances.
The most valuable resource of any business is its staff and in particular its key people.
In your business a key person may be the business owner, an employee, or a supplier to the business. A key person is anyone whose absence, or loss, from the business would have a significant negative impact on the business.
Loss of key staff can affect every aspect of your business – revenue, profit, goodwill and ultimately the value of your business.
Key person insurance can protect your business in the event that an important employee (or other key person) leaves the business as a result of disability, trauma or death. Key person insurance provides an amount of money for revenue purposes, such as protection against reduced sales or profit, or a capital purpose such as paying off a loan. You may have other avenues open to you, to address the absence of a key person, such as additional borrowing, capital injections from shareholders or selling assets.
But how realistic are these and could they be done quickly to provide the much needed funds? Key person insurance policies can be effected quickly, meaning your business can continue operating and maintain its value.
We all hope for an accumulation of wealth after a lifetime of hard work and diligent saving. For many business owners, their wealth is tied up in the business, and we need to protect this valuable asset.
Few business owners think about the fate of their business in the event of their death or disability because they are often too busy running their businesses to think about broader strategic and risk issues. Our role as risk advisers is to challenge you to think about succession risk and embark on the succession planning journey. A succession plan increases the chances of survival of a business when the owner chooses to leave on a voluntary basis, or their involvement is sadly terminated by death or disability. Asset protection is important because the death or disability of a business owner may put a significant strain on the ability to repay business borrowings. There is a risk that the lender will call in the loan if they are not comfortable that the business can sustain the debt, and for secured loans, this may result in the sale of business assets or the business owners’ personal assets..
Our advisers will help you in your consideration of:
- Who will pay for your share of the business in the event of yours death or disability? (Buy-sell arrangement)
- Who do you want to follow in your footsteps?
- In the event of death or disability, can the business borrowings (and/or owners’ guarantees) be extinguished or reduced?
- The tax implications of various alternatives
- The same considerations need to be made by all the owners in the business