Don’t Risk more then you can Afford to lose: Personal Insurance Planning

The consideration and maintenance of adequate personal insurances is, therefore, an essential component of Advanced Estate Planning.

What is Personal Insurance Planning?

What would happen to you and your loved ones if for any reason you were unable to continue to earn an income? How long could you and your family maintain your current lifestyle or afford to make repayments on your house or investment loans?

Your ability to earn an income is probably the greatest asset you will ever have. Without an income your wealth is at risk of being exhausted to make ongoing loan repayments and other living and medical expenses. The consideration and maintenance of adequate personal insurances is, therefore, an essential component of Advanced Estate Planning.

The assessment of your financial circumstances and personal insurance planning needs is not a matter that we are able or licensed to advise you in relation to. We, therefore, recommend that you consult a Financial Planner in relation to your personal circumstances and needs in relation to the following personal insurances:

Income Protection

Income protection insurance can provide you with a replacement income stream in the event that you are unable to work for an extended period of time due to an accident or injury. That income stream can be invaluable to ensure that you are able to continue to afford repayments on your home, car or investments loans and meet day-to-day expenses while off work.

Total and Permanent Disability (TPD)

TPD insurance will provide a lump sum payment to cover loans and/or to invest to fund future living expenses in the event that you become permanently incapacitated and unable to earn an income.


Trauma insurance will provide a lump sum usually within 14 days after diagnosis of a serious or terminal condition such as stroke, cancer, heart attack or other specified conditions. Such moneys are ideal for paying medical expenses and household expenses, or even rehabilitation and renovation costs.

Life Insurance

Life insurance will provide a lump sum to the beneficiary of the policy on your death. Life insurance is ideal for ensuring that loans in respect of your family home are paid out on your death and that your family will, therefore, be able to remain in your home without the financial strains of funding mortgage repayments without your help. Life insurances can also provide funds to invest so that the income of the investment will be a source of income for your family.

Many people leave it until it is too late to take out personal insurance. If you have previously suffered a trauma or disability or have an existing medical condition, obtaining insurance without exclusions can be difficult and/or expensive. However, where your personal insurance is already in place you will be entitled to renew your insurances annually without exclusions notwithstanding that you have subsequently suffered or discovered a previously unknown medical condition. Therefore, the taking out, or review, of personal insurances without delay is an important aspect of Advanced Estate Planning.

If you already have these policies of insurance you should periodically review them to ensure that you are still adequately covered as your personal circumstances change.

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The information in this article is not legal advice and is intended to provide commentary and general information only. It should not be relied upon or used as a definitive or complete statement of the relevant law. You should obtain formal legal advice specific to your particular circumstance. Liability limited by a scheme approved under Professional Standards Legislation.

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