7 Compelling Reasons Why You Shouldn’t LIVE Another
MINUTE Without A Tailored Wealth Protection Plan…

1.    Life insurance might be the ONLY “sure thing” bet you ever make!

It is often said there are only two certainties in life… death and taxes. Many of us spend countless hours trying to minimise our tax liabilities without ever considering the effect that an unexpected death or incapacity would have on our families financial wellbeing. Consider that the biggest risk in your life right now is not protecting your main source of income. The good news for you is I’m here to help.

2.    Protect loved ones with an ‘iron clad’ source of income

Nowadays, it’s getting more and more difficult for a family to get by on just one income. However, quite often there will be one main provider for the family, so this makes it vitally important to have the right protection in place to ensure your loved ones have the assurity of financial security, should you ever be forced to the sidelines through (god forbid) illness, injury or death.

The fact is, even a short term injury or illness to a key person can have devastating consequences on the financial security of individuals and families.

Wouldn’t it be great to have the resources to deal with any eventuality?

3.    Avoiding the ‘double whammy’ of grief and financial loss

Imagine leaving behind a financial burden ON TOP of the devastating grief loved ones would feel if you ever suddenly died or were seriously injured…

Death or disablement shouldn’t mean debt. Imagine losing your home as well as the life or health of a loved one all at the same time. Now contrast that with the comforting thought of your loved ones being fully taken care of should anything ever happen to you.

This is the sort of reassurance that having the right cover can bring at a very low premium cost to payout ratio when compared to insurances you simply wouldn’t be without such as ‘motor vehicle’ or ‘home & contents’. Can you afford not to have proper life cover?

4.    Taking care of business

If you are a business owner then your skills and knowledge are irreplaceable. It’s largely unrecognised that one of the major reasons for business failure in Australia is due to the death or incapacity of a key person in the business.

Without the security provided by this key person, businesses can face many issues including:

  • A loss of revenue in the business causing a possible reduction in capital value
  • Lenders not being prepared to extend lines of credit or even calling-in loans
  • Customers and suppliers losing confidence in the future direction of the business

The unexpected death or incapacity of a business owner can potentially destabilise the ongoing viability of the business. It is not commonly recognised that the death of a guarantor in most cases triggers an “automatic default” in most business loan agreements… entitling the financial institution to ‘call in’ the loan and proceed against a guarantor’s assets any time it wants. Although we do not like to think about it, the chance of a death or disablement among owners is surprisingly high. Quite often there are wider ramifications with flow-on effects to employees and their families.

The best thing about getting properly covered is that you can sleep easy at night without ever experiencing the niggling worries of being financially exposed or putting your family and your business at risk.

5.    Safeguarding future prosperity

What most people do not realise is that their greatest asset is their ability to earn an income. Right now, we are all working to maintain our current lifestyle needs, while saving for resources that are going to fund our incomes later in life. A loss of income can have disastrous consequences for both our present and future quality of life.

Also, for most business owners… their ‘super fund’ IS their business. This means that if the business fails for any reason, those assets are often lost to creditors, etc… leaving the owner with nothing, and the family left picking up the pieces. Getting properly tailored cover for your needs will ‘lock in’ this wealth tied up in your business and ensure it remains as a legacy to future generations. One simple phone call will make sure there’s something left for your kids if you were ever taken out of the picture.

6.    Cover is affordable, often tax deductible and there’s never a cheaper time to arrange it than right now!

Take for instance a 30 year old white collar professional male earning $100,000 who takes out Income Replacement Protection. The cost would be approx $75 per month or $46 per month after claiming a tax deduction1. That’s only $1.50 a day to protect a six figure salary!. Now, if the client was totally disabled one month after the policy was taken out and never able to work again, the policy would continue to pay for the next 35 years. That’s over $5 million paid out! In addition, while on claim the sum insured will be indexed each year to keep pace with inflation with no ongoing premiums to pay.

As we get older the chances of suffering an illness that will lead to disability increases significantly. Because of this increased risk the cost of insurance cover also increases with age. What most people do not realise is that unlike insuring your home or car once an insurer accepts your life cover, they guarantee to renew it each year no matter how serious your health problems – as long as you continue to pay your premium. Therefore if you suffer a serious illness before you are covered you may not be able to get the insurance you need. Getting cover while you are healthy is likely to be the best decision you ever make.

What is also a little known fact is that you can save tens of thousands of dollars by locking in your premium at your current age, thus insuring the policy does not increase each year with age.

1Cost based on monthly premium of $45-95 after tax deduction (marginal rate of 38.5% including Medicare levy) for an agreed value One Path Income Secure Comprehensive Policy, stepped premiums for a degree qualified accountant, 30 year old male, non-smoker, with a monthly benefit of $6,250 (75% of income), waiting period of 30 days and benefit period to age 65. QLD stamp duty included. CPI 3.5%. Premium current as at March 2013. This is not a recommendation and the insurance company selected for quotation was done so randomly.

7.    ‘Peace of mind’ is priceless…

Can you put a price on knowing that you and your family will be taken care of?

Now think about this… imagine being able to put yourself in a position where money doesn’t dictate what is important… i.e. a spouse having to work away from home to keep money coming in for the family while a partner is dealing with cancer. Wouldn’t it be great to have resources to allow the spouse to take time off work to spend time with their partner?

What about the security to know that you will be able to provide education funding for children?

Or being able to manage succession planning for the future livelihood of your business?

These are just some of the many benefits you get by having a wealth protection plan drawn up by a qualified professional.

 

To highlight the reasons why… here are some
rather alarming health-facts you should be aware of…

  • You have a 60% chance of becoming disabled for more than 1 month during your working life and a 1 in 3 chance of being disabled for MORE than 3 months1
  • There are 60,000 strokes each year. On average, 1 every 10 minutes2
  • 684,000 people are estimated to have chronic heart disease2
  • 61% of adults are overweight or obese, which dramatically increases your chances of getting cancer, heart disease and diabetes2
  • Nearly half a million people are hospitalised each year in Australia due to accidental poisoning. Approximately 1 in 5 involve a ‘high threat to life’ situation2
  • Cardiovascular diseases as a group contribute to 54% of all male deaths and 59% of all female deaths2
  • The occurrence of diabetes has tripled over the last 20 years. There are estimated to be over 800,000 diabetics in Australia. Diabetics are 5 times more likely to have a stroke and 10 times more likely to have a heart attack2
  • By the time a man reaches 85, there’s a 1 in 2 chance he will have been diagnosed with cancer at some point (1 in 3 for women)3
  • Around 108,000 new cancer cases are diagnosed annually. That’s more than the capacity of the MCG each and every year3
  • Despite all these risks, independent research has showed parents with dependents were critically underinsured by $1.37 trillion. To put this another way, only 4% of parents with dependent children have adequate cover4

1.”Interim Report of the Disability Committee,” Institute of Actuaries of Australia 2000.
2.Australia’s Health 2010, Australian Institute of Health and Welfare, December 2010.
3.Cancer in Australia, an overview, Australian Institute of Health and Welfare, December 2010.
4 TNS Research, Investigating the issue of underinsurance in Australia, August 2005.