It is essential to be adequately insured to protect your personal and business finances. Insurance provides essential financial protection for a variety of personal and business purposes – for example, to protect income, repay debts, or provide for dependents. At Strategic Prosperity Group, we will put together a comprehensive insurance strategy for you that will minimise the loss that may result from your death or serious illness or disability.
Many people insure their home and contents, their car and their life yet they don’t adequately protect their greatest asset – their ability to earn an income.
Can you imagine what would happen if you were unable to work for an indefinite period of time due to illness or injury? Your savings would quickly disappear and it is highly likely that you will have to sell your investments or even take out a loan to make ends meet. This would definitely impact your recovery and cause undue stress and worry for you and your family.
Income protection insurance is essential to protect your greatest asset and avoid putting your family’s lifestyle and financial future at risk. If you suffer an illness or injury and are unable to work, income protection insurance can pay you a monthly benefit (usually 75% of your pre-tax income) to replace lost earnings. You can generally claim these premiums as a tax deduction.
You can choose a range of benefit payment periods, with maximum cover usually up to age 65. You can also choose a range of waiting periods normally between 14 days and 2 years.
If you’re like most people, you’ve used debt to finance a range of lifestyle purchases, including the family home. If you die or become injured or sick, however, you will still need to fulfill your loan obligations even though the salary your family has relied upon is no longer available.
Some people do not realise it but your loan documents may even contain a clause that requires immediate repayment if you die or become disabled. In many cases, this is not possible, and the only option is to sell the underlying asset to repay the lender. When this asset is your family home, your dependents could be in the unenviable position of either having to re-finance the loan or sell and downgrade their residence.
You also need to consider whether your family will be able to meet their ongoing expenses should anything unforeseen happen to you.
Death, permanent disability or a serious medical condition can have a big impact on a family’s finances and standard of living. If something should happen to the main breadwinner, the emotional and financial strain could be substantial and long-lasting.
If something should happen to the homemaker, the family can suffer financially, as well as emotionally so it is very important to ensure that your homemaker is also covered. Despite advances of modern technology, there are still plenty of things that need to be done around the house and hiring someone to provide home help and child care services can cost a lot of money.
To protect your household (and avoid putting a big dent in the budget) it’s important to include the homemaker when developing suitable insurance strategies for your family.
While income protection insurance should always be considered, it’s also important to protect the very thing that generates your income – your business.
By taking out business expenses insurance, you can cover certain ongoing expenses and keep your business running while you recover.
If you are self-employed or in a small partnership, business expenses insurance can help you meet 100% of your share of eligible business overheads, should you be unable to work due to illness or injury.
This can help keep your business afloat and ensure that, in the worst case scenario, there is still a business to sell should the need arise.
Expenses that can be covered with this type of insurance include office rent and mortgage payments, equipment or vehicle leasing costs and utility bills such as electricity, heating and water.
When taking out an insurance policy through us, we provide you with the following valuable benefits for the life of your policy: