Risk Protection (Insurance)

It’s natural to assume that we can control our progress toward these and other goals through our motivation, hard work and perseverance…and often, if we are lucky – we do.

You are free to choose luck, and hope that a tragedy doesn’t strike and you won’t suffer from a serious illness or injury, or that unexpected death won’t disturb the secure and comfortable life you want for you and your family. But fortunately, you are also free to choose a more financially secure future.

Why not take the opportunity right now to explore your options and make a conscious choice about your future, rather than leaving it to chance?

No one plans to get sick, injured or to die prematurely, but you can plan to provide a cash cushion if you or your family are ever unfortunate enough to be affected by these events. It’s all about retaining control of your financial independence even if you lose the ability to earn a living through your own efforts.

Through effective planning and provision for events that threaten your life, you can safeguard the financial future for you and your family. It is within your control.
The four pillars of protection

You can effectively and economically immunise your financial future against these risks using a combination of four basic types of cover:

  1. Income protection insurance to provide a replacement monthly income if you are temporarily sick or injured.
  2. Critical illness insurance to provide a lump sum of cash if you are diagnosed with one of many specified medical conditions, such as cancer, multiple sclerosis and heart attack.
  3. Total and permanent disability insurance to provide a lump sum of cash if you become totally disabled and are unable to work ever again.
  4. Life insurance to provide a lump sum of cash upon death or terminal illness.

A combination of these insurances can give you the financial resources to maintain or adjust your lifestyle and ensure that you are able to care for yourself and your family with confidence and dignity.

Income Protection Insurance

Our biggest asset is our earning capacity. What if we are unable to earn due to any unforeseen circumstances? How will the bills get paid? How long will our savings last? How will we take care of our day to day needs in absence of a regular income?

One may have sick leave from your employer, but this may run out before he/she is well again. Worker’s Compensation will only apply to an injury that happens at work – what if you become ill, or injure yourself at home?

The only answer for all these questions is Income Protection Insurance. Under this policy, a replacement income is provided to insured in case they are unable to earn an income due to illness or injury. The replacement income will be 75% of pre-disability income. This money could go a long way to keeping your household, or your business, running while you concentrate on your recovery. The major highlight of this insurance is that the Premiums are tax deductible and that this policy can be held inside or outside super with some limitations if policy is taken within superfund.

Don’t wait! Protect yourself for the everlasting smile of your loved ones! For an obligation free initial meeting, Contact us

Claim Story
A motor mechanic had an illness due to which he fainted often. This health issue first started in September but the claim was lodged February when the client was undergoing a surgery and would be off work for about 1 year. Shortly after the submission of claim, it was confirmed by the insurer that even though claim is lodged in February the payment will be starting October as the medical

Trauma Cover
Sometimes even the healthiest people suffer accidents or get diagnosed with diseases such as cancer, stroke or heart attack. This may restrict your ability to earn and may leave in a crunching financial situation.

With Trauma policy, a lump sum is provided in event of listed illness to the insured to help them cope with the consequential financial impact on their lifestyle, family and work. There are generally 30 – 60 Trauma conditions for which you can be insured for. The number and type of conditions covered, however, differs from provider to provider. However, most of the main conditions are similar, such as heart problems, cancer, and stroke. Other medical conditions may include quadriplegia, loss of limbs, and head trauma.

Generally, there is a 90 day qualifying period to get any claim from most of the insurance companies. To receive the benefits from a trauma insurance cover life insured must survive between 7 – 14 days after being diagnosed.

Although people are living longer due to living healthier lifestyles and the advancement of life prolonging drugs, we are still experiencing an increase in the percentage of the population contracting some form of cancer; much the same can be said of heart disease and stroke. It is therefore becoming even more likely that we will suffer a traumatic event at some time in our lives.

Don’t wait! Protect yourself for the everlasting smile of your loved ones! For an obligation free initial meeting, Contact us

Claim Story

A client was recommended with Income Protection to keep his income, TPD to pay off his mortgage and Trauma to cover the medical expenses. However, he only took trauma policy because he thought he was very healthy and didn’t need too many insurances.

In a regular health check in 2011 his GP found something abnormal in his heart and recommended him to see a specialist. The result was a triple bypass surgery. Insurer paid $127,890 due to the trauma claim.

After the surgery, the client had to stop working for a while. He is regretful for not taking Income Protection and TPD which can totally change his current life by keeping his income and paying off his mortgage.

Total and Permanent Disability Cover

Total and Permanent Disability, also known as TPD,  is the Lump sum cover wherein the lump sum is provided to the insurer or the nominated beneficiary in the event of Total and permanent disability i.e. the life insured is unlikely to ever be able to return to work. The Life insured must survive without life support for up to eight days from the date they satisfy the element of the TPD definition.

General TPD Definition:

As a result of illness or injury the life insured Suffers the permanent loss of:

  1. Two Limbs or sight in both the eyes or
  2. One Limb and the sight in one eye
  3. Independent existence i.e. unable to perform at least two of daily living without the assistance of another adult person like, bathing or showering, dressing and undressing, eating and drinking using toilet

There are two main definitions of TPD Insurance are:

  • Own Occupation TPD – the claimant must be unable to work in their own occupation ever again. Maximum Cover $3 million
  • Any Occupation TPD – the claimant must be unable to work in their occupation and also any occupation that they are suited to via education, training or experience ever again. Maximum Cover $3 million

Don’t wait! Protect yourself for the everlasting smile of your loved ones! For an obligation free initial meeting, Contact us

Claim Story

A plumber who required a shoulder reconstruction, who was then advised around a month after surgery by two doctors not to work as a plumber again, claim forms went in, two weeks later full TPD claim was paid, own occupation definition, his income protection was never going to be enough, he has three young children and a mortgage, his wife does not work. The TPD claim saved him and his family financially.

Term Life: 

Life is moving smooth. Have a job, got married and now have a family. I am one of the support pillars of my family. My family depends on me, may be as a bread winner or as a home maker. I have taken up loans and mortgages for the progress of my family. I will repay these debts or I will save for my kids and my retirement as I earn.  A BRILLIANT LIFE PLAN, for most of us. But unfortunate events occur. No one expects sudden death, illness or an accident but these events may occur without giving any notice to anyone.

Do we have a plan if something happens to us, how will our dependents survive?  We may not be able to undo the loss but may reduce its financial impact on our dependents by taking appropriate insurances. It’s much better knowing our dependants have financial security from a well-considered Life Insurance policy.

Life Insurance will provide lump sum amount to the surviving partner/beneficiary in the event of death of the life insured.  Life insurance is not just about insuring the breadwinner. The contribution the non-breadwinner makes in allowing a high-income earner to continue working would also be a huge cost if the non-breadwinner were to die. We may not be able to afford a nanny or housekeeper to run your household to earn an income, if the home-maker is insured?

Don’t wait! Protect yourself for the everlasting smile of your loved ones! For an obligation free initial meeting, Contact us

Claim Story

A client had $2 mil of life cover. It was the only insurance she had and it was in super. She had developed terminal illness. She didn’t need to wait for the death claim. Two Doctor’s sign off that she was terminally ill. She got paid and as she had nothing to lose she took that money and paid off all her liabilities. Then she went to her home country, tried some radical stem cell implant surgery and is now cured! This is the power of a claim!

Child Cover

Most difficult time as a parent is to see your child sick or injured. Money may not buy a quick recovery of your child but it can ease financial pressures you may face during this emotional time. Child cover allows you to focus on your family when they need you most.

Having a child cover is a way of insuring children for a range of trauma events, terminal illness and death for the children between the age of 2 and 15. This cover converts at age 21 to one of the life policy cover without the need for further medical underwriting. Please note that some providers may provide Life cover and other may provide Trauma cover without underwriting. With most of the providers, Child Cover is only available when any other life insurance policy for an adult is bought. Maximum sum insured for most of the companies is $200,000 per child but there are a few companies who offer $250,000 per child.

Private Health Insurances only covers for hospital stay and some medical/extra expenses. It won’t cover rehabilitation, alterations to your home or long term nursing care.

Don’t wait! Protect yourself for the everlasting smile of your loved ones! For an obligation free initial meeting, Contact us

Claim Story:

A 5 year old pulled a bowl of boiling soup onto her causing her third degree burns to legs and hands. Fortunately, her parents have taken a Child Cover Policy for her when she turned two.  They were able to make a claim which helped them pay for the top burns plastic surgeon in Australia, a part time nanny to look after their other kids and have saved them from the financial stress which may have occurred, had they not taken this policy.

Business Expense Insurance:

Many small business owners do not plan for the possibility of them becoming disabled and unable to work due to illness or injury.  This impacts on the ability to pay the regular, fixed operating expenses of running the business and keep the business viable whilst they are away. It is important for a business owner to ascertain how the business will survive if they are unable to work. Will they be able to pay the regular fixed operating expenses of the business?

Business Expense Insurance is meant for people who run their own business or practice with some regular overheads like utility bills, administrative staff salary, rent of business premises, interest on borrowing, business insurance premiums etc

For more information, Contact us

Business Loan Protection:

A person may put its brain and efforts behind the success of his/her own business. The plan may involve taking up a loan against their personal assets or personal guarantee of someone close.  Future is unpredictable. Man proposes one way; God may dispose it the other way.

On the death, TPD or Trauma event of a person responsible for the success and profitability, a business may have difficulty in meeting its commitments under a loan.  The lending institution may then need to call on the personal guarantees and supporting security. In this situation, an appropriate life cover with trauma and TPD as a rider or stand alone will help the guarantor to repay the debts without discontinuing the business.

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Ownership Protection:

Often a business owner’s interest in a business is left to his or her beneficiaries who have no skill, experience or expertise to contribute and who may not be compatible with the surviving business owner(s). The surviving owner(s) may wish to purchase the outgoing owner’s shares in the business, but have neither the funds nor the right to purchase at an agreed price.

Ownership Protection insurance provides protection to the business owners against such situations. Under this insurance a Life and TPD insurance is purchased for each partner. The sum insured is the dollar amount of their shareholding in that company. Upon the triggered event, the sum insured is paid to the family of the outgoing owner to purchase his/her shares in the company. This arrangement is supported by a ‘buy and sell agreement’ between the business owners. In this agreement, it is clearly stated that in triggered event(s), the proceeds of insurance are paid to the family of the outgoing owner to buy the shares held by the outgoing owner.

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Key Person Insurance:

The most valuable asset in any business – whether a small business or a multi-national corporation – is the key people who run the business. The loss of the managerial skills, expertise and leadership of a key person can have a substantial impact on revenue and profitability. Considerable costs can be incurred in recruiting and training a suitable replacement. There may also be an adverse impact on the business’s goodwill and its ability to repay debts or other expenses.

While material assets such as plant and equipment can be replaced relatively easily, this is not the case with human assets. When a person dies, is totally and permanently disabled or suffers a critical illness, they can be lost to the business forever and this can create an adverse effect on the profitability. Considerable time and money can be spent recruiting and training a replacement. These costs can escalate if there are no suitable candidates available with the organisation. The goodwill and credit rating of the business may be threatened.

To indemnify the business against these losses, the business should consider using key person insurance.  The purpose of this policy is to protect the financial position of the business by providing a lump sum payment to offset the estimated losses that would arise upon the death and total and permanent disablement of the key person. The tax treatment of the premiums and the insurance benefit payable will depend on whether the insurance is taken out for revenue purpose or capital purposes.

A revenue purpose is considered if the reason for the policy is to protect the business against an adverse impact on the profit and loss account resulting from the death, disability or critical illness of a key person.

A capital purpose is considered if the reason for the policy is to protect the business against an adverse impact on the balance sheet resulting from the death, disability or critical illness of a key person.

For more information, Contact us


Corporate Authorised Representative of Libertas Financial Planning

AFSL 429718



Disclaimer : The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions. Austin Brothers Wealth Management Services does not give any warranty as to the accuracy, reliability or completeness of information that is contained in this website, except in so far as any liability under statute cannot be excluded. Austin Brothers Wealth Management Services do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.