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Product Class Advice – Trauma (Part 3)

This form of insurance is available as an optional benefit on a Term Life insurance policy or as a standalone policy. A trauma payment is likely to be paid should you suffer any of the covered conditions.

This could include, but is not limited to: heart attack, stroke, cancer, paraplegia, multiple sclerosis, Parkinson’s disease, chronic liver, lung and kidney disease.

The exact conditions covered as well as the definition of each condition varies for each product. The lump sum could be used to cover debt reduction and to cover costs related to making lifestyle adjustments, necessary home and/or car modifications, medical treatment costs, work alterations and peace of mind.

Generally term, TPD and trauma insurance premiums are not tax deductible. However, when a claim is paid the benefits are not subject to tax.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email [email protected] or register your interest on our website.

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Product Class Advice – Term Life (Part 2)

The most well-known form of risk insurance is life insurance.

Term Life provides a lump sum benefit payable to the policy owner upon your death. When the benefit becomes payable, it is normally paid to your dependents or your estate. Some policies will also pay the benefit on diagnosis of terminal illness.

This lump sum could be used to pay back debts and/or provide a lump sum that can be drawn upon to create income, and so help your family maintain their current lifestyle. In addition, it will help you keep your family’s plans on track and pass on an investment asset to your family. The most popular form is yearly renewable term, meaning that the premium is calculated each year and will normally increase as you get older. The premium is charged each year taking into account your age, gender and smoking status.

This form of insurance is flexible in that the sum insured can be altered to suit your financial circumstances without incurring any financial loss. Most forms of yearly renewable term are guaranteed renewable. This means that it can be renewed automatically irrespective of the status of your future health. However, the company can change the table of rates at any time unless the company offers a rate guarantee for a specified period from commencement.

Generally term, TPD and trauma insurance premiums are not tax deductible. However, when a claim is paid the benefits are not subject to tax.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email [email protected] or register your interest on line.

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Product Class Advice – Risk Insurance (Part 1)

The accountant exemption expiry has no impact on the level of advice accountants can provide on risk insurance. Under the exemption an accountant is able to provide product class advice which does not take a client’s personal situation or financial circumstances into account.

When establishing an investment strategy for SMSF members insuring risk must be considered and then audited annually.

In the finance wise RG146 two day face to face course we have included risk insurance within a module because an accountant will have a greater duty once the accounting exemption expires and it is complex area of financial planning.

The purpose of Risk Insurance is to ease the financial burden that can impact you and/or your family in the event of unfortunate medical circumstance such as illness, disability or death. Protection is available in the following areas:

  • Term Life
  • Total and Permanent Disability
  • Trauma
  • Income Protection
  • Business Expenses InsuranceIn this blog series we explore the different types of cover and important definitions to enable your future conversations to be more targeted and more informed and highlight the difference between a stepped and level premium.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email [email protected] or register you interest on our website.

If you found this article interesting, why not
  • SEND it to a friend from the sidebar
  • LEAVE A COMMENT by clicking on the icon at the top of the article
  • Send FEEDBACK directly to us at [email protected]