Insurance Planning

Protect you and your family with insurance for life


Life is a series of swings and roundabouts. Being prepared for anything is integral to protecting your most important assets – you, your family and your lifestyle.

Insurance planning is a practical way of doing just that and should always be factored into your financial planning.

Having insurance protects what you have now, and what you may need in the future – should life throw you a curveball.

But what types of insurance products are important, and what do they cover?

Our personal insurance guide will help you navigate insurance coverage and risk management, and help you work out what you need to consider for the stage of life you’re at.

Life Insurance

Life insurance provides a lump sum of money in the event of your death. Whoever you choose to nominate in such circumstances will be the recipient/s of this money. Deciding an amount to insure yourself for will depend on your stage of life and whether you have a partner and/or dependents. Life insurance is typically part of a broader estate planning process.

Things to take into consideration when determining the level of life insurance you need include:

  • Whether you have a mortgage or other debts, such as a car loan.
  • What your partner or children will need in terms of childcare, education and living expenses. Keep in mind that your partner may be unable to work for a while.
  • What monies your dependents will receive from your superannuation, shares and savings.

Source: MoneySmart

Total and Permanent Disability (TPD) Insurance

Total and Permanent Disablement insurance (often termed TPD insurance) provides a financial safety net in the event you are seriously injured or suffer an illness that prevents you from working.

TPD insurance helps you cover the cost of your rehabilitation, debt repayments and future cost of living.

Things to take into consideration when determining the level of TPD insurance you need include:

  • How much income you and your family would need to live on if you couldn’t work
  • Your level of private health cover (the higher the better, as it would cover many of your health expenses)
  • What Government benefits or workers compensation you could be eligible for.

Income Protection

Income protection insures you for up to 75% of your income in the event you are unable to work due to sickness or injury.

In essence, it provides you with a replacement income stream to help you stay afloat until you can return to work.

Things to take into consideration when determining the level of income protection cover you need include:

  • Income protection policies vary in terms of what they consider a ‘disability’ and what benefits they offer. Make sure you understand exactly what each policy includes.
  • You will need to pick a ‘waiting time’ when you select your level of income protection cover. This is the time you need to wait before you can make a claim. Generally, the waiting time is between 30-90 days.
  • Income protection policies may be stepped or level. Your financial adviser can explain the difference and help you work out what is best for you.

Trauma Insurance

Trauma insurance provides a financial safety net in the event you are diagnosed with a specified medical condition or serious injury, or undergo a specific medical procedure outlined in your policy.

It provides support for you and your family if the trauma you experience means it is difficult or impossible for you to work.

Generally, trauma insurance will provide you with a set amount of money to help cover things such as:

  • Private medical costs (above those paid by your private health insurer)
  • Money to maintain your income stream
  • Adjustments you may need to make to your house because of your illness
  • The ongoing cost of therapy or special transport needs
  • An income stream to repay your debts.

Things to take into consideration when determining the level of trauma insurance you may need include:

  • How much income you and your family would need to live if you couldn’t work (day-to-day to living expenses, childcare and education costs).
  • Your level of private health insurance.
  • What support you could expect from your extended family or friends in the event of a trauma.
  • What Government benefits or workers compensation you could be eligible for.

FAST FACT – Some insurance companies will require you to give them some details about your medical history before they insure you.  If you don’t give the insurer this information they may refuse your claim.

Insurance Financial Planning in Adelaide

Identifying exactly what insurance cover you need to protect you and your family, and at what level, can be difficult.

Your trusted financial adviser can work with you to help determine the type and level of insurance cover you may need. They can provide financial advice based on your needs and wants, and articulate and explain provisions that may need to be considered.

Working with a professional and experienced adviser gives you peace of mind that the right insurance at the right level gets put into force correctly.

An adviser can also add value by providing you with financial advice and comparing multiple insurers to ensure you get the most appropriate insurer for your age, occupation and health situation.

‘Just like car insurance, different insurers are better suited for different people,’ says Nick Munro, Financial Planner with MBA Financial Strategists.

‘Insurance such as income protection and life insurance can be structured in many ways, each with different advantages and disadvantages. An adviser will help you understand the most appropriate way to hold the cover so that it is most beneficial to your needs.’

MBA Financial Strategists Financial Planner Darren Holst said having ‘insider knowledge’ benefited clients in many ways.

‘Just like any other company, insurance companies have their ‘sweet spot’ or target market,’ he explained.

‘Some prefer blue-collar or white-collar workers, and some are better structured for those who are self-employed rather than employees of a company. Importantly, some are also much more accepting of common health conditions which would need to be disclosed in your application process. Add all of these elements up, and you see that having a professional eye over your insurance can really help you get the best insurance for your needs.’

At MBA Financial Strategists, we are Adelaide’s first choice provider for professional and tailored financial services. We choose the most suitable products to suit your financial situation, regardless of provider or financial institution.

Please contact us for more information about insurance planning. Visit Meet the Team to make an appointment or simply contact the office.


Source: AMP


MBA Financial Strategists Pty Ltd ABN 13 008 285 756 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee. This article contains information that is general in nature.  It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

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