Life Insurance Advice

Life Insurance – Financial Advice Adelaide

Novo Wealth provides life insurance and financial advice in Adelaide, assisting clients and their families with a range of insurance-specific financial services.

The core of all our financial services – including life insurance cover advice – focuses on secure, ethical financial planning that aims to help make the world a better place and protect your financial situation.

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What is Life Insurance?

 

Life insurance provides financial support and is a critical component of your financial plan, as it can have a huge impact on your life and family.

The consequences of not being able to work for six months or a year or even longer due to illness or injury can devastate your lifestyle and future plans. And while nothing compensates for the loss, disability or injury of a loved one, insurance can provide you with peace of mind knowing that you and your loved ones have that financial security.

Our role as your financial planner is to help you find the right life insurers, communicate the finer points of your life insurance policy and product disclosure statement, and assess your financial situation to find the best life insurance premiums that work for you.

Term Life Cover

Term life cover insurance is also known as death cover and provides a lump sum payment for your family in the event of your death. Most life insurance policies will also provide payment if you are diagnosed with a terminal illness.

Your family can use the term life insurance money to cover funeral costs, living expenses, debts such as a mortgage or meet other financial obligations. This type of life insurance ensures that an already tumultuous time is not made more difficult by unnecessary financial stress.

Total and Permanent Disability Cover (TPD Insurance)

Total and permanent disability insurance also provides a lump sum payment. This can help if you suffer an illness or injury and are permanently disabled/unable to work. Consequently, it can help you maintain your current lifestyle while managing additional expenses that ongoing illness or injury can bring.

Income Protection Insurance

Income protection (IP) provides a regular payment in place of your income. This can be provided when you suffer an illness or injury and are temporarily unable to work. Because when you’re out of action, day-to-day living costs don’t stop.

On top of them, the costs associated with overcoming an illness or injury need to be covered while you have no salary. Therefore, income protection cover can help maintain your lifestyle and take the pressure off until you’re able to return to work.

Trauma Insurance

Trauma insurance also provides a lump sum payment in the event that you suffer a major trauma, such as cancer or a severe injury. It can make it easier for you to focus on your health and meet the costs of medical care and rehabilitation.

While health insurance can help to cover some of the medical costs, trauma insurance provides financial support for you to use on whatever you need in a traumatic time.

How Much Life Insurance Cover Do I Need?

As a rule of thumb, most life insurance companies estimate an appropriate amount of life cover for life insurance is 6-10 times your annual salary. However, working with a financial adviser means you can make a more accurate estimate of your financial needs from life insurance.

For the other types of life insurance (trauma, TPD or IP), a financial planner can help you compare life insurance quotes and life insurance costs to make sure you know how much cover you need.

Is Life Insurance Tax-Deductible?

Income protection insurance is usually tax-deductible if it is not held within your super fund. If it is through your superannuation, the super fund handles the tax deduction for you.

Total and permanent disability insurance purchased through your superannuation fund are generally tax-deductible also. However, life insurance policies purchased outside of your superannuation are not tax-deductible.

When exploring your life insurance options, we can explore the possibilities of tax deductions as well.

Why Life Insurance is an Important Part of a Comprehensive Financial Plan?

The benefits of having life insurance as part of a robust financial plan include:

  • Comfort and peace of mind that you and your family will have the support you need if something happens to your main income provider.
  • Insurance will replace your salary and protect your assets should anything unplanned happen.
  • Your family can continue to pay bills, loans, or debts without issue, and cover any immediate financial needs.

You never know what’s going to happen, but you don’t want to dwell on the negative possibilities either – which is where life insurance comes in. Comprehensive life insurance policies allow you to plan for the worst, then enjoy your life with family and friends with complete peace of mind.

To explore the best ethical options for life insurance and ensure the financial security of your loved ones, contact Novo Wealth today!

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