Risk Protection

Crest Financial Services can Deliver you Financial Peace of Mind

We all know life is full of uncertainties – unfortunately some of these uncertainties can potentially result in financial harm. That is why financial protection is so important. Financial protection can give you peace of mind. No matter what happens in life you can be secure in the knowledge that at least you and your family will be able to cope financially.

Financial protection insurance is often overlooked when developing a financial plan. Such insurance is one of the best forms of protection against life’s calamities, including financial hardship caused by serious illness, injury or death.

 

What Types of Financial Protection are Available?

Nobody wants to think about morbid “what if” scenarios. But, what if you fall ill or get injured and as a result can’t work? What happens to your family in the event of your death? Investing in financial protection, puts a contingency plan in place and ensures the worse case scenario is avoided.

There are a number of financial protection options available. The information below may be used as a guide only. The best choice for you will be entirely dependent on your unique circumstances. One of our Crest Financial Planning team members will help you determine what is right for you.

 

Income Protection

What is your greatest asset? Most people typically respond that their home, their car, or their investments are their greatest assets. However, your greatest asset is actually you and your ability to earn an income.

Most of us rely on our income to pay the mortgage or rent; to keep ourselves and our families clothed and fed, and to maintain a comfortable standard of living. Protecting our ability to earn an income should be a high priority. An income protection policy will pay a regular income if you are unable to work because of sickness or injury. Whether the disability is as serious as cancer or as minor as a broken arm, income protection provides a simple, cost-effective safety net.

In most cases, the premiums for Income Protection are tax deductible.

Most policies will pay up to 75 per cent of your average monthly income (net of business expenses but before tax). Most policies also will cover you against various conditions which could disrupt your ability to earn an income.

Income protection is particularly important to the self-employed, who cannot rely on short-term sick leave from an employer.

 

Life Insurance

A life insurance policy provides financial assistance in the form of a lump sum to your family or other dependents in the event of your death. The proceeds can be used to meet any outstanding commitments, such as the family home mortgage and to maintain your family’s standard of living.

Life insurance is a safety net that allows your family to cope financially if you or your partner dies. Life insurance removes one major stress – financial insecurity, particularly in times of emotional stress.

Term life insurance provides death cover only – if the life insured does not die within the specified term, by age 65, for example, the policy is cancelled and there is no surrender value. This type of policy has no savings or investment component – it is only a means of managing risk.

Ensuring that you have adequate life insurance for your individual circumstances can be a difficult task. A Crest financial planner can help you by highlighting areas to consider when calculating the amount of life insurance that you require.

 

Trauma Insurance

Most of us know of someone that has suffered from a serious illness. While modern medicine can provide many people with a good chance of recovery, the financial consequences of a serious illness can be devastating. Bills for example don’t stop, simply because you are ill. A serious illness such as cancer, stroke, heart attack or any one of a number of other major illnesses can strike at any time, causing physical and emotional trauma.

For those recovering from such an illness, or facing a lengthy period of incapacitation or recuperation, there is often the financial burden of medical bills and expenses, the ongoing costs of rehabilitation and care, possible modifications to the home, and forced early retirement.

Few people have the necessary savings to pay all these expenses or to manage without a regular income.

Trauma insurance can offer relief by paying a lump sum in the event of a specified condition, helping to ease the financial burden on both the insured and the family.

 

Child Trauma Insurance

The weakest link in an otherwise rock-solid protection portfolio is often the lack of child cover. Not to cover the child, but to allow for the fact that if a child is seriously ill, the subsequent need for one parent to stop work to provide care can have devastating financial consequences. High travel and medical costs can add a great deal of stress to the emotionally traumatic experience of a serious child illness.

For a modest cost, child trauma cover is an easy way to strengthen your protection portfolio and allow you to be there when you are most needed.

 

Business Expense Protection

Business expense protection covers your business against fixed costs like rent, lease arrangements and non income producing employees’ salaries, should you or your partner suffer a serious sickness or injury.

The plan can cover you for up to 100 per cent of your eligible fixed expenses while you are unable to work due to sickness or injury.

A Crest financial planner can help you today.