Financial Protection in Uncertain Times

By Jason Fittler

With the considerable movements in the Australian and global sharemarkets in 2008, it is understandable that you may be concerned about the effects of market volatility on your wealth and assets. Whilst market volatility may be out of your control, protecting your assets in personal adversity is well within your control.

ABN AMRO Morgans is well known for its investment advice, but we are also able to provide easy to understand, straight forward, cost effective advice that can assist you to achieve the following:

•    Accumulate Wealth whilst protecting what you have
•    Get maximum value from your superannuation through insurance benefits
•    Protect yourself and your assets
•    Plan your estate so that your family and loved ones are looked after

The type of protection available ranges from:
•    Life cover
•    Total and permanent disablement cover
•    Trauma cover
•    Income protection

You can't predict the future in these uncertain times, but you can protect it!

No matter what stage of life you are at, wealth protection should be a major consideration in your financial plan. We can help you obtain the right cover and structure for your personal circumstances, so that you are protected against the unexpected. We can also structure your insurance in tax and cash flow effective ways.

It’s critical that your insurance is reviewed regularly in line with your unique needs. This will ensure you have the right protection and stay in control of your future.

Insurance – How much should you have?

Insurance is a very important part of growing your wealth. It is what saves you when things go wrong. Ever had a car accident, did you plan to have an accident. What would have happened if the car was not insured? Glad you had the insurance, happy to renew the insurance the following year.

What if you had been personally injured in the accident, your car would be repaired, would you be? How would you make house payments, car payments, buy food pay for medical expenses. I guess you could always sell the car once it was repaired.

Insurance is the safety rope which stops use from falling back into poverty and hard times. Could you image taking your kids out of their school because you could not afford fees. Try explaining to them that although you insured the car you did not insure their lifestyle.

It’s time to start looking at Life, Total and Permanent Disability (TPD), Trauma and Income Protection. But how much do you need? Let’s take a look.

Income Protection – most policies will pay you 75% of your current income. You need at least a policy which covers you for 2 years and has a 30 day waiting period. Most super funds will do this.

Trauma – At least $100,000 worth and you should have your children covered as well, they can be covered on your policy.

Life and TPD insurance – To work out how much you should have, multiply your gross income by 16… add to this the amount of your home loan, personal loans and credit cards… this is the amount of Life and TPD insurance you should have. It may look high however Life and TPD is general cheap for the cover you receive.

Before you do anything, contact us first so we can explain the benefits and pit falls of the different type of insurances. Plus we’ll make sure you get the best value for money.

Call us at ABN AMRO Morgans Townsville, 07 4771 4577 we are always ready to listen, explain and help.

Until next week.