When you buy insurance, you enter into a contract with an insurance company who promises to provide you or your beneficiaries with money in an agreed set of circumstances.
Generally these circumstances are pretty serious with major impacts for you and your family. Your death, permanent disablement through accident or illness, major medical trauma, (such as stroke, heart attack and other major medical issues), or (in the case of Income Protection) a temporary time off work due to accident or illness.
In return, you make regular periodic payments, called premiums. The premium amount is based on factors such as your age, gender, medical history, the type and dollar amount of cover that you have decided to purchase.
During this time you may have considerable debt, as well as significant responsibilities and financial commitments, (like children’s education). For those who have established their financial position, and looking towards retirement, personal insurance may only be a small consideration (or not important at all).
Insurance can be an important part of a complete financial portfolio. Understanding basic insurance principles and discussing your needs with a licensed financial planner will help you make an informed decision about your need for insurance, as well as the type and amount of insurance that is appropriate to your situation.
If personal risk protection is something that is important to you, we can firstly help you quantify your exposure to risk, and if needed, provide you with a range of quality insurance and asset protection options.