As we wrap up step 3 in Becoming Financially Well Organised, we’ll be discussing the last few options to answer the question: If you were to pass away, would your family’s financial security be assured? We’ll go through Critical Illness Insurance, Income Protection Insurance, Health Insurance and finally wrap up with  6 tips for your Risk Management Plan

Critical Illness Insurance

This type of personal insurance provides you with a lump sum payout in the event of critical illness. Examples of critical illness include heart attack, stroke, cancer and other major traumas.

Your income should be covered by your income protection policy, but this will not cover everything.  Sometimes there can be significant out of pocket medical expenses, depending on the condition you have suffered, or you may need to release some financial burden by paying out loans or needing additional care. Critical illness cover is designed to assist you in these times. However, there is no tax deductibility for critical illness insurance.

 

Income Protection Insurance

Income protection or accident and sickness insurance provides you with 75% of your income – paid to you on an ongoing basis and usually up to the age of 65 – if you are ill and cannot go back to work.

Some of the traps to be aware of when taking out your policy are:

 

Health Insurance

The last of the personal insurances is health insurance. This insurance is designed to cover our medical expenses when using private medical services. It covers hospital and extras such as physiotherapy, chiropractic, psychology, and so on. Health insurance is a personal choice. However, higher income earners pay additional tax if they do not have private health insurance.

Tips for your Risk Management Plan:

To ensure you are protected, contact 07 3833 3999 or info@fwo.net.au