How an adviser can help protect your wealth

September 2nd 2024 | Categories: Insurance |

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Establishing a robust wealth protection plan today will help to reduce your risk exposure and safeguard your wealth for the future.

Many people assume that financial advisers only work to manage and build our wealth, however, an important part of a holistic financial plan is wealth protection. In the financial advice world, wealth protection refers to the suite of personal insurances that protect you and your loved ones from financial burden, should the worst happen. Ensuring that you have appropriate insurance coverage is essential for overcoming times of uncertainty and mitigating the long-term impact of any unwelcome surprises on your wealth.

When do I need to start thinking about wealth protection?

It’s never too early to consider your wealth protection plan personal insurance is often most important for younger couples and families when your debt levels and expenses are at their highest. It is also easier to obtain quality policies when we are young, healthy and less likely to have pre-existing medical conditions. Taking a proactive approach to protecting your assets and reducing your risk exposure will help you to secure your wealth and safeguard your financial future.

I have insurance coverage within my superannuation, so why do I need a Financial Adviser?

Firstly, well done on being aware of your insurance within your super!

We often have small portions of guaranteed cover within superannuation; however, these policies alone run the risk of not being sufficient to meet your needs. The sums insured can be regarded as low, and this cover will usually only include Life and Total & Permanent Disability (TPD) policies – continue reading to find out more about these. While policies inside super are cost-effective, the definitions are basic, making them harder to claim.

Insurers offer slightly different policy definitions across the board. Financial advisers work with these policies every day and are in the best possible position to find the right policy for you, at the best possible premium. With the cost of living continuing to rise, it is important that we find the right balance between appropriate coverage and cost-effectiveness.

A financial adviser can also review your insurance needs on an ongoing basis, and make recommendations as your circumstances continue to develop. As life changes, so to do our insurance needs. A young active family with high debt levels and expenses will have very different insurance needs to an elderly couple who are debt-free and slowing down.

A financial adviser will complete an Insurance Needs Analysis with you, to determine what your optimum levels of insurance are and ensure you are not under-insured, at any point in your life.

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What types of insurance can a financial adviser help me with?

Your financial adviser can assist you with the following personal insurance policies; Life, Total and Permanent Disability (TPD), Trauma and Income Protection.

Life Insurance: Provides financial security to your beneficiaries in the event of your death, ensuring that debts are covered, and loved ones are financially supported.
Total and Permanent Disability (TPD) Insurance: Protects your income and assets if you become permanently disabled and unable to work. This often allows for suitable home improvements to be made or for additional home care, if applicable.
Trauma Insurance: Offers a lump sum payment if you are diagnosed with a critical illness such as heart attack, cancer or stroke, covering medical expenses.
Income Protection Insurance: Ensures a steady income stream if you cannot work due to illness or injury, preventing the need to deplete your savings or assets.

Financial advisers can also assist with child cover and sometimes key person insurance (most suitable for small business owners). Ask your financial adviser about these additional policies at your next appointment if you are interested.

Personal insurance is a crucial component of a comprehensive wealth protection strategy, no matter what stage of life you are at. A well-rounded insurance plan safeguards against unexpected events that could otherwise have a significant financial impact. Financial advisers play a vital role in helping clients understand and implement personal insurance policies that protect their wealth and provide peace of mind. Should you wish to review your insurance needs in-depth, we encourage you to make an appointment with a financial adviser.

If you are unsure whether or not it is the right time to make changes to your insurance coverage, consider booking a complimentary Discovery Call. This 15-minute chat with an Invest Blue Financial Adviser will allow you to determine if financial advice is the best next step for you at this time.

Try our Discovery Call.

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What you need to know: This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you.