The best plans in business always have a disaster recovery plan. Your personal Wealth Protection Strategy is you and your family’s own personal disaster recovery plan.
There are four main types of personal insurance that you need to be aware of:
- Life Insurance
- Total and Permanent Disability (TPD)
- Income Protection
Life Insurance provides your surviving spouse and other dependants with a lump sum of capital. The lump sum can then be used to extinguish debt and be invested to provide your family with an income to supplement the loss of earnings they will experience, allowing ongoing day to day expenses such as your children’s education to be paid.
TPD Insurance provides you with a lump sum of capital once you are unable to work for usually 3 to 6 months due to total disability. Typically this will be used to extinguish debt, provide for medical expenses and your future care needs as well as fund ongoing living expenses.
Trauma Insurance provides you with a lump sum of capital if you suffer a listed traumatic or critical illness event such as a heart attack, cancer, stroke, disease (such as Parkinson’s, MS…) to name a few. This is designed to extinguish debt, but also importantly to provide for immediate medical expenses.
This type of insurance provides you with a maximum of 75% of your income after a specified waiting period, generally 30 to 90 days for a period ranging from 2 to 65 years. This is paid monthly as an ongoing income stream, which is designed to replace your income and provide for your family’s ongoing expenses.
At Knight we work with you to ensure you have the correct amount of cover required to fund your needs in the event that you and/or your spouse die, become disabled or suffer an insurable event. We research the marketplace to ensure you have the right policy to suit your needs, and are here to work with you in the event of a claim.
Knight Financial Advisors Pty Ltd is a Corporate Authorised Representative of NKH Knight Holdings Pty Ltd (AFSL 438 631) ABN 30 163 152 967. The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.