Tailored Insurance Products

Sickness & Accident

Sickness and Accident insurance cover protects the insured against loss of income resulting from an injury or sickness.

This type of cover typically provides:

• benefits to the insured in the event of injury
• average weekly income benefits to the insured for certain accidents and/or sickness

Examples of events which can be covered include:

• accidental injury
• temporary total or temporary partial disablement as a result of an accident or sickness

The ATO allows a tax deduction for the cost of premiums paid for insurance against the loss of your income. You cannot claim a deduction for a premium or any part of a premium which you paid under a policy to compensate you for such things as physical injury. Life insurance, trauma insurance and critical care insurance are some types of policies for which premiums are not deductible.

Mortgage & Loan Protection

Mortgage & Loan Protection insurance cover protects the insured in the event that they are unable to make scheduled mortgage repayments because of a loss of income, due to injury or sickness.

This type of cover typically provides:

• benefits to the insured in the event of injury
• average weekly income benefits to the insured for certain accidents and/or sickness

Examples of events which can be covered include:

• accidental injury
• temporary total or temporary partial disablement as a result of an accident or sickness.

Life & Permanent Disability Cover

Life Insurance

Life insurance simply is a means of providing additional protection against your financial position in the event of death or the diagnosis of a terminal illness. A lump sum benefit is paid to meet certain expenses that may need to be funded at such a time and avoids drawing on your net financial assets.

Such expenses that you may wish to protect against are the repayment of debt, financial support of your dependants and funeral costs.

PGFS can help you structure your Life insurance so that it is both cost and tax-effective but also tailored to meet your estate planning concerns, thus removing some of the potential burden that your family may face.

Total & Permanent Disability Insurance

Total & Permanent Disability (“TPD”), is designed to provide a lump sum benefit in the event the insured individual suffers an event that results in them being assessed as totally & permanently disabled and unlikely to ever be able to work again. It is a commonly view that this type of insurance can provide potentially more valuable protection to an individual than Life insurance.

TPD insurance can be held in conjunction with Life insurance or as an independent policy. PGFS will help you assess the most appropriate structure that is best for you.

Types of TPD Insurance Assessment

There are two types of definitions that TPD insurance will be assessed by in the event of a claim, commonly referred to as “Own Occupation” and “Any Occupation”. The definition that will apply to any insurance policy considered will generally be affected by your current occupation. Some occupations allow the option as to which meaning of total & permanent disability will apply.

A benefit claim will be assessed differently under each of these alternatives and is based upon the likelihood of the insured person being able to work again. Each type of definition will have a different set of conditions that have to be met for a successful claim to be received.

It is important that you discuss these differences with your PGFS Adviser and how they may affect the insurance cover you consider.

Why do you need Total Disability Insurance

If you can’t work again,

• You still need capital to survive and pay off debts.
• You may have greater expenses.
• You may need to make provision for retirement.
• You may want your family to maintain their lifestyle even if you can’t work.
• You are a partner or co-director in a business and you want to ensure the ongoing financial stability of the business should a partner or co-director becomes totally and permanently disabled.
• You own a business where an employee’s ability or input is vital to the profitability or success of your business, that is, that employee is viewed as a ‘key person’.

Income Protection

Income Protection insurance is designed to provide a regular income benefit to assist in meeting the insured’s living expenses in the event they are unable to work for an extended period of time because of an illness or injury.

The insured benefit will commence after a nominated waiting period has passed from the time of medical assessment and will continue for as long as they meet this assessment or for the duration of the policy term.

Holding income protection insurance in an individual’s own name generally allows the premiums to be tax-deductible. Alternatively, as is the case with Life and Total and Permanent Disability insurance, Income Protection insurance can be held through your superannuation.

The main benefit of income protection insurance when compared to sickness and accident cover is that it cannot be cancelled by the insurer, providing that premiums are paid in accordance with the policy terms.

The most appropriate form of Income Protection insurance cover that will meet your individual circumstances will be addressed by your PGFS advisor as part of your financial planning process.

Trauma Cover

Medical Trauma insurance, otherwise known as Critical Illness cover, provides a lump sum benefit in the event the insured suffers a major medical event, such as, a stroke or heart attack.

The level of cover considered should be sufficient to protect against such potential expenses as medical and health related costs or may alternatively be desirable as a form of financial relief while you are away from work and focused on recovering your health.

This form of personal risk insurance can provide a valuable addition to your general insurance cover in the event the full cost of any medical services required are not met by health insurance you may hold. It may also provide a lump sum in lieu of lost income caused by ill health. This can remove the risk of your financial assets being severely impacted.