Types of personal risk insurance
Ways a financial planner can help
A financial planner can recommend whether personal risk insurance is appropriate for you. They can help decode the various insurance policies and find the right mix of cover to suit your needs. They can outline the pros and cons of waiting periods, different insurance providers and premiums. They can also recommend an appropriate amount of cover that is tailored to your circumstances.
Simply request an appointment online to speak with a Commonwealth Financial Planning (CFP) financial planner over the phone or by Microsoft Skype/ Team video conference.
Things you should know
This information is general in nature and there may be other considerations that are relevant to you. It has been prepared without considering your individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information to your circumstances before acting on it. You should consider talking to a financial planner before making any financial decision based on this information. A financial planner can provide you with tailored financial advice.
1 APRA expects income protection insurance providers to make the following changes from 1 July 2021: New income protection contracts to be based on protecting income based on annual earnings, not older than 12 months, at the time of claim. New income protection policies must have initial terms and guaranteed renewable periods not exceeding 5 years. Changes to occupation and financial circumstances should be considered on renewal. Benefits provided by new income protection contracts:
- not to exceed 100 per cent of earnings at time of claim for the first six months of the claim, taking account of all benefits paid under the income protection product, as well as other sources of earned income
- limited to 75 per cent of earnings at time of claim (subject to a dollar maximum of $30,000 per month) after the initial six months.
- Manage the risks associated with long benefit periods (e.g. having a stricter disability definition for long benefit periods). For more information see APRA intervenes to improve sustainability of individual disability income insurance.