Wealth Protection matters

31 Aug 2012

By Shadforth Financial Group

Personal insurance is the most practical way to protect the assets you have worked hard to build. None of us like to think that we will experience an 'insurance event', but accidents, illness and death are unfortunately a part of life.

If you hold personal insurance, it is really important you re-visit your cover when your life changes. Changes in your marital status, dependants, income, and debt levels can all affect the type and your level of cover you need. Let's briefly take a look at the key kinds of personal insurance cover that you might hold within a wealth protection portfolio:

  • Life cover – as the name suggests, life cover insures a life. A lump sum or equivalent instalments can be paid to the policy owner, nominated beneficiaries or to your estate.
  • Total and Permanent Disability insurance – this kind of cover provides for you in the event that you became totally or permanently disabled, as defined by the policy.
  • Trauma insurance – it's like TPD insurance, however it provides a benefit to you if you are diagnosed with a specific illness or injury covered by the policy such as cancer, stroke, heart disease, blindness, severe burns, loss of speech or deafness.
  • Income Protection – this insurance protects your current income if you are unable to work due to illness or injury. Income Protection insurance pays up to 75% of your gross annual income, as defined by the terms of the policy.

Your wealth protection portfolio should be created to provide for you in an unexpected event. Mortgage and debt repayments, school fees, medical costs and of course the everyday expenses still need to be looked after if you're unable to earn an income. For many clients, the true value of the cover is provided in the peace of mind they have knowing that their loved ones will be looked after in the event of the unexpected. If it's time to review your cover, please contact your Shadforth Private Client Adviser.

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