At
Elite Financial Solutions, we believe
that insurance is a waste of money until
you need it.
However, since we are unable to determine
exactly when tragedy may strike, we
are committed to making sure that you
are all adequately insured!
After you study our example, please
visit our 'Get a Quote' page, to access
personalised insurance premium quotes.
The insurance team at Elite Financial
Solutions are able to offer you: |
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Term
Life Insurance |
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Total
& Permanent Disablement Insurance |
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Income
Protection Insurance |
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Trauma
Cover |
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Business
Expense Insurance |
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Keyperson
Insurance |
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Click on one of the headings above to
learn more. |
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| DID YOU KNOW? |
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$200,000, invested at
5% interest, will only give your family
an income of $10,000 per annum before
tax? |
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you can claim a tax deduction
on income protection premiums? |
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you can use pre-tax superannuation
dollars to purchase Term Life Insurance
as well as Total & Permanent Disablement
Insurance? |
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without income protection,
you may be forced to sell your home
and other assets if you are unable to
work for a prolonged period due to illness
or injury. |
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if your business partner
dies, his/her family may force you to
sell your business to pay out their
half. A properly constructed buy/sell
agreement and life insurance policies
should avert this situation arising. |
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Example
Anthony came to Elite Financial Solutions
to have his insurance reviewed.
Together with his wife, Sally, they
have three children (aged 3, 6 &
8), a mortgage of $140,000 and a car
loan for $23,000. Anthony's salary
is $60,000 and Sally is responsible
for home duties. Their non-home assets
are his superannuation ($43,000),
some shares ($7,000) and a term deposit
($14,000). Currently, Anthony holds
a term life insurance policy for $250,000
in his own name.
In the case of his death, Anthony
would like to see his family's standard
of living remain constant and to have
any outstanding debts paid out.
To determine the amount for which
Anthony's life should be insured,
we sum
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Debt |
$ 163,000 |
(used to pay out debt) |
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Salary Multiple |
$ 840,000 |
(invested to provide an income) |
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Burial & Estate
Costs |
$ 25,000 |
(used to pay burial
& estate costs) |
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|
$ 1,028,000
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|
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Less Existing Investments |
$ 64,000 |
|
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Existing Insurance |
$ 250,000 |
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$
714,000
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| This may seem like
a very large policy, but when you
take into account that
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the children are all very
young and have many expensive school
years ahead of them. |
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it is unlikely that Sally
will be able to work as she must care
for the children (and since she has
been out of the workforce for so long,
may need to spend time and money re-skilling
if she were to enter the workforce). |
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inflation will eat away
at the capital value of the sum invested. |
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since this is the only
chance that the family would have for
financial security, it is far better
to slightly over-insure than to under
insure. |
|
Anthony took out the additional cover
through his SuperWrap Personal Super
Plan. Using this method, he was able
to insure himself using pre-tax dollars
and without affecting his cash flow.
Anthony also took
trauma cover and income protection
insurance so that in the case of serious
illness or injury, he and his family
would be protected.
Additionally, Sally's
death, illness or injury, would have
a profound economic, as well as emotional
impact, on the family. Anthony would
need to continue his job to provide
an income for the family. There would
be a significant cost to hire a nanny
and housekeeper to perform Sally's
home duties. For this reason, we also
recommended that Sally take term life
insurance and trauma cover.
For more information
on insurance, ring Elite Financial
Solutions on (02) 9868 3900 or email
 .
Term
Life Insurance provides a lump
sum payment on death or terminal illness
of the insured person. It has no surrender
or cancellation value. Premiums generally
increase with age.
Total
& Permanent Disablement Insurance
provides a lump sum payment on the
total and permanent disability of
the insured person.
Income
Protection Insurance pays you
up to 75% of your salary income if
you are unable to work due to accidents
or illness for an extended period
of time.
Trauma
Cover provides a lump sum benefit
if the insured person suffers certain
specified life threatening or debilitating
health conditions such as stroke,
heart attack or serious illness
Business
Expense Insurance pays your
business' fixed costs while you are
unable to work due to illness or injury.
Business Expense Insurance can be
very important to self-employed people
and is an important compliment to
income protection insurance.
Keyperson
Insurance
is a life insurance policy on the
life of the key person in a business,
so that in the event of disablement
or death, the business receives sufficient
funds to tie it over until a replacement
is found.
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