Personal Protection Insurance
The most important asset you have to help you achieve your financial goals is your ability to earn money.
Some people with sufficient assets may be in a position to self-insure rather than implement insurance. Most people, however, are not in this position and require an insurance plan.
If you were unable to work and generate an income, not only may your financial goals be unachievable, your ability to meet everyday costs could be in jeopardy.
To ensure you can continue to be financially secure in the event you may be unable to work, having your Personal Protection Insurances in place may be critical. Australian Private Capital provides a Personal Protection Gap Analysis for every client ensuring you have peace of mind.
There are 4 key types of Personal Protection Insurances to consider:
- Life Insurance
- Total & Permanent Disability (TPD) Insurance
- Trauma Insurance
- Income Protection Insurance
1. Life Insurance
Life insurance provides financial protection for your family in the event of your death. It provides a lump sum to help with costs such as loan repayments, education expenses and most importantly, everyday living costs. It allows your family to continue to meet their financial commitments if you are not around to financially support them.
2. Total & Permanent Disability (TPD) Insurance
If a person should become permanently disabled and cannot return to work, Total & Permanent Disability (TPD) insurance provides a lump sum payment to help with the cost of your medical treatment and allows you to continue to meet your ongoing expenses if you are unable to work and generate an income.
Importantly, there are two types of cover under TPD.
2.1 ‘Own’ Occupation TPD, or
2.2 ‘Any’ Occupation TPD
The first and more specific type of TPD cover, (only available to specific occupational groups), is ‘own’ occupation TPD. A benefit under this contract is payable when the claimant is totally and permanent disabled, and unable to ever work in their ‘own’ occupation again.
The second alternative TPD cover type is ‘any’ occupation where a claimant is totally and permanently disabled and unable to work in ‘any’ occupation for which they are reasonably suited by training, education and experience and is deemed unlikely to ever return to any work.
3. Trauma Insurance
Trauma cover protects you financially if you suffer a specified medical condition (e.g. serious heart attack, stroke, cancer, kidney failure, etc.).
It provides a lump sum payment to help with the cost of medical treatment, and your ongoing expenses.
Trauma cover allows you to meet your financial commitments while you take time off work to return to good health.
4. Income Protection Insurance
Income protection cover is designed to provide you with regular monthly income whilst you cannot work due to sickness or accident.
You are able to protect up to 75% of your gross income, inclusive of any packaged benefits such as a car and superannuation.