Wealth Protection

Building wealth is important but protecting that wealth is paramount. Hejaz Financial Advisers work closely with you to identify your wealth protection needs in light of your assets, liabilities, income, family and dependants. We then formulate a long-term strategy to ensure that you have the requisite cover to protect your financial position in the event of an unexpected tragedy.

Personal Insurance is a type cover that provides financial security to your life and your family’s in the event of a serious injury or illness, loss of ability to earn, total and permanent disablement or death. This cover will enable you and your family to maintain your way of living by providing payment to cover any outstanding debts and everyday expenses. The four main types of personal insurance include:

Benefits of life insurance

  • The benefits of life insurance far outweigh the cost, as you or your family can use the proceeds of an insurance payout to:
  • Pay off the mortgage and other debts
  • Meet ongoing household expenses
  • Fund medical treatment or rehabilitation costs
  • Pay for school and uni fees
  • Pay for extra child care or home services
  • Cover the cost of funeral expenses.

Types of cover

Death Cover

This is designed to pay out your dependents a lump sum when you pass away.

Total & Permanent Disability Cover

This type of cover provides you with a lump sum if you are injured or fall ill and are unable to work permanently.

Critical Illness (Trauma) Cover

This provides you with a lump sum if you suffer a serious injury or illness as defined the policy.

Income protection

This replaces a portion of your income if you are unable to work temporarily due to illness or disability.

It’s an unfortunate fact of life that we can’t always protect ourselves and our loved ones from risk and misfortune. That’s why life insurance is valuable throughout life, from starting out in your career, to having a family, and right through to retirement.

While life insurance can benefit most people, it’s considered essential if you have major financial commitments such as a mortgage or personal debts, or financial dependants such as a partner and children. It helps by providing the money your family needs to maintain their lifestyle into the future.

The real question is, can you afford not to have life insurance?

If you were to die now, could your family continue to live in the family home, maintain their lifestyle and achieve their financial goals? Ultimately, not having life insurance could cost you and your family more than you think.

Fortunately, most people are surprised to learn that life insurance is actually cheaper than they think. Adequate cover can start from as little as the cost of a takeaway coffee each week.

Most super funds offer at least a basic level of life insurance, and often income protection and Total Permanent Disability (TPD) insurance to protect members and their families from the financial hardship of death or a terminal illness.

Holding your life insurance within super – rather than in a stand-alone life insurance policy – can have its benefits, including:

  • cheaper, more tax-effective premiums; and
  • automatic acceptance, without the need for medical questionnaires or examinations.

The cheaper premiums mean that fund members can potentially have a higher sum insured than they would have outside super, for the same price, or maintain the same sum insured but at a reduced cost.

However, structuring life insurance within super can also have its drawbacks. The most serious of these is the danger of insufficient protection, with members often underestimating how much life insurance cover they actually need.

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