Risk Insurance
Posted on 11. Jan, 2012 by admin in Risk Insurance
Statewide Business has a formal association with professional Insurance Advisor Deborah Heindl. Deborah Heindl (Authorised Rep. No. 266858) and Alice Morley (Authorised Rep. No. 385712) are Authorised Representatives of Guardianfp Ltd trading as Guardian Financial Planning ABN 40 003 677 334 AFSL 237641.
Guardianfp are responsible for any advice provided.
Life
Life insurance provides a lump sum payment to a beneficiary, third party or an Estate in the event of your death. It would also be normal for all or part of the benefit to be paid should you be diagnosed as terminally ill with less than 12 months to live.
The lump sum could be used to pay off debts, provide an education fund for your children or could be invested to generate future income for your family.
Apart from the emotional stress, little or no life insurance could plunge those left behind into a financial crisis. Life insurance is a simple and cost effective way to protect your family or dependants financially in the event of premature death.
Income Protection
This type of insurance provides you with a regular source of income should you be unable to work for a period due to sickness or injury. You can generally insure for up to 75% of your normal income and there are a number of options available relating to how soon you will be paid, and for how long.
Total Permanent Disability (TPD)
This type of insurance provides a lump sum payment if you become totally and permanently disabled. The meaning of total and permanent disability is defined in each policy document, but generally if a person is unable to work again in their own or any occupation for which they are suited by training, education or experience the benefit is payable.
Trauma
Trauma insurance provides a lump sum payment in the event of you being diagnosed with one of a specified range of critical illnesses. The list of conditions covered is often optional, and varies between companies, as do the definitions of those conditions. The benefit can be used for any purpose such as to provide for the cost of medical expenses, to repay debts, or to provide money for you to live on until you are able to return to work.
How would your family cope if you weren’t around, had an accident or got sick?
Business Expenses Insurance
This is a specialised form of risk insurance designed for people who are self employed or in a partnership. It provides for a regular payment to cover the fixed costs of running the business should you be unable to work for a period due to sickness or injury.
Key Person Insurance
Key person insurance is a type of Life Insurance policy which is structured in a particular way to protect a business—Large or Small.
It can cover a Key Person for a combination of any of the insurances listed on page 6. The business is listed as the beneficiary and / or policy owner.
The purpose must be defined between Capital or Revenue purpose.
Key Person -Capital Purpose
This aims to ensure that the business can repay debts on the loss of a key person, easing the financial burden of the business at a crucial point in time. It also covers the discharging of security over a guarantor’s property, compensating for loss of goodwill etc. This will give the remaining business owners some breathing space to stabilise and maintain the capital value of the business.
Key Person -Revenue Purpose
This aims to replace lost income, compensating for loss of profits, additional expenses (such as finding a suitable replacement) etc, caused by the loss of a key person.
Buy / Sell Agreements
A buy/sell agreement is a contract usually entered into between business partners, covering shares in the business &/or partnership interests.
There are many ways in which this works technically, however it generally provides a mechanism by which business interests can be transferred between owners on death, disablement or critical illness.
Does your business have a Will?
Keep your business in the right hands.
