Risk insurance is a critical yet often overlooked aspect of comprehensive financial planning. It is designed to provide a financial safety net for you and your loved ones when faced with unexpected circumstances that can drastically impact your life and financial health.
At Hunter Galloway, we are committed to finding you the best level of coverage for your personal insurance. We can help you with Life Insurance, Total & Permanent Disability Insurance, Income Protection Insurance, Business Insurance, and Critical Illness or Trauma Insurance.
Get in touch with one of our expert Mortgage Brokers at Hunter Galloway to discuss your options for Risk Insurance and for assistance with the application process.
As Brisbane’s highest-rated and most-reviewed mortgage broker, we are known for our commitment to helping our clients achieve their home ownership goals while remaining protected against financial hardship.
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Risk insurance is a form of cover that provides you with financial protection against various life risks such as illness, disability, and death. From safeguarding your income stream to protecting your business or taking care of your family’s future, risk insurance plays an instrumental role in maintaining financial stability in the face of adversity.
The importance of risk insurance cannot be overstated. It’s about ensuring that you or your family are not burdened with financial hardships during challenging times. Whether it’s an unexpected illness, an accident that leads to disability, or the untimely death of the family’s primary earner, risk insurance can provide the necessary financial support when it’s needed the most.
There are several types of risk insurance designed to protect against different types of risks:
Personal Risk Insurance is a type of coverage that provides financial security to you and your family in the event of unexpected circumstances such as illness, injury, disability, or death. It typically includes life insurance, total and permanent disability (TPD) insurance, income protection insurance, and trauma insurance. The purpose of this insurance is to ensure that you and your family can maintain your lifestyle and meet your financial obligations even in the face of adversity.
The pricing of risk insurance policies is based on several factors. These include the type of insurance, the amount of coverage, the policyholder’s age, health status, lifestyle habits (like smoking), occupation, and sometimes even hobbies. For instance, a younger, healthier individual would typically pay lower premiums compared to an older individual or someone with health issues. Similarly, someone with a high-risk job may pay more than someone in a low-risk occupation.
Risk insurance is essential as it provides financial protection against unforeseen circumstances. If you were to become seriously ill or injured and unable to work, or in the event of your death, risk insurance can provide a financial safety net for you and your family. It can help cover medical expenses, repay debts, replace lost income, and maintain your family’s standard of living.
A mortgage broker can play a crucial role in helping you with risk insurance. They can assess your financial situation and help determine the level of coverage you might need. They can also help you understand the different types of risk insurance available and guide you in choosing the right policies for your specific needs. Furthermore, they can assist in the application process, making it easier and more efficient for you.
Life insurance is a contract between you and an insurance company. In exchange for regular premiums, the insurance company agrees to pay a specified amount of money to your beneficiaries or estate upon your passing, as long as the policy is still current.
The purpose of life insurance is to provide financial security and peace of mind, ensuring that your loved ones can continue to meet their financial obligations after your passing.
The primary role of life insurance is to safeguard your family’s financial future. Here are some of its key benefits:
When it comes to selecting a life insurance policy, several important factors come into play:
Consider your current and future financial obligations, including mortgages, loans, education costs for your children, and projected living expenses for your family.
Understand the differences between term life insurance and whole life insurance. Term life insurance covers you for a specific period, while whole life insurance offers lifetime coverage and builds cash value.
Assess your financial ability to maintain the premium payments over the long term.
It’s essential to choose an insurer with a strong reputation and a history of stability in the industry.
Determining how much life insurance you need is crucial as this is the amount that will enable your beneficiaries to live a lifestyle comparable to now after you pass away.
An easy calculation is to base the policy on 10 times your annual salary or, depending on your financial situation, at least the total amount of your liabilities.
Choosing the right life insurance policy can seem daunting, but with thorough research and careful consideration of the factors above, you can secure the financial future of your loved ones.
For more detailed and personalised advice, consider reaching out to a reputable mortgage broker like Hunter Galloway.
There isn’t a specific age that’s considered the “right” age to buy life insurance. However, it’s generally a good idea to consider purchasing a policy when you have financial obligations or dependents. This could be when you get married, have children, buy a house, or start a business. It’s also worth noting that life insurance premiums tend to be lower the younger and healthier you are, so buying a policy earlier in life could potentially save you money in the long run.
The cost of life insurance in Australia can vary widely based on several factors including your age, health, lifestyle, occupation, and the amount of coverage you want. On average, a policy might cost anywhere from a few dollars to several hundred dollars per month. It’s important to shop around and compare quotes from different insurers to ensure you’re getting the best value for your needs.
Some life insurance policies may offer an advance payment option under certain circumstances, such as if the policyholder is diagnosed with a terminal illness. This is often referred to as a “living benefit” or “accelerated death benefit.” However, not all policies include this feature, and the specific terms can vary by insurer. If this is a feature you’re interested in, it’s important to discuss it with your insurance provider or broker when setting up your policy.
TPD Insurance is a type of cover that provides a lump-sum payment if you become totally and permanently disabled and unable to work. The disability could result from an illness or an accident. This payout can help cover medical expenses, repay debts, and provide for ongoing living costs.
Being unable to work due to a disability can lead to significant financial strain. This is where TPD insurance comes into play. The key benefits of TPD insurance include:
When choosing a TPD insurance policy, there are several important factors to consider:
Different policies have different definitions of what constitutes total and permanent disability.Some cover you if you can’t work in your current job, while others only pay if you can’t work in any job suited to your education and experience.
Your cover level should be adequate to meet your financial obligations and maintain your family’s lifestyle. It’s important to review your cover regularly to ensure it remains appropriate.
Be aware of any policy features, benefits, and exclusions. Some policies might offer additional benefits like partial disability benefits, while others might exclude certain conditions or events.
Consider whether you can comfortably afford the premium payments over the long term.
Making the right choice in TPD insurance requires a clear understanding of your needs and thorough scrutiny of policy details. For personalised advice tailored to your circumstances, consider reaching out to an experienced broker like Hunter Galloway.
Total and Permanent Disability (TPD) is typically defined as a condition that prevents an individual from working in their own or any occupation for which they are suited by training, education, or experience. The specific definition can vary by insurer and policy, but it generally includes serious physical or mental health conditions that are expected to prevent the individual from ever returning to work.
While coverage can vary by insurer and policy, there are typically some exclusions for TPD insurance. These may include disabilities resulting from self-inflicted injuries, war or acts of war, certain pre-existing conditions, and disabilities occurring after a certain age (often 65 or 70). Some policies may also exclude certain high-risk occupations or activities. It’s important to read your policy documents carefully to understand what is and isn’t covered.
The premiums for TPD insurance can vary widely based on factors such as your age, health, occupation, lifestyle, and the amount of coverage you want. Premiums can be structured in different ways, such as level premiums (which stay the same over time) or stepped premiums (which increase as you age). It’s important to compare quotes from different insurers to ensure you’re getting the best value for your needs.
Typically, TPD insurance policies are issued on an individual basis, meaning each person would need their own policy. However, some insurers may offer discounts for couples or groups who purchase policies together. If you’re interested in insuring multiple people, it’s a good idea to discuss your options with an insurance broker or provider.
Income Protection Insurance, also known as salary continuance insurance, provides a monthly income of up to 75% of your regular earnings if you’re unable to work due to illness or injury. This type of cover ensures you can continue to meet your financial obligations and maintain your lifestyle while you recover.
Without your regular income, managing day-to-day expenses and financial commitments can become challenging. Here are some key benefits of income protection insurance:
Selecting an income protection insurance policy requires careful thought. Here are a few factors to consider:
This is the time you must wait after becoming unable to work before you can start receiving benefits. Choose a waiting period that aligns with any sick leave or savings you could use to cover expenses in the short term.
The benefit period is how long the policy will continue to pay out if you’re unable to work. A longer benefit period means higher premiums, but it also provides more protection if you can’t return to work for an extended period.
Policies typically cover up to 75% of your income, but the exact amount can vary. Be sure to choose a level of cover that will meet your needs.
Understand the terms and conditions of your policy, including any exclusions or limitations.
Income Protection Insurance is a significant consideration for anyone earning an income. It offers peace of mind and financial stability in unexpected circumstances. To get a policy that best suits your needs, consider consulting with experts such as Hunter Galloway for personalised advice.
Income Protection Insurance is designed to provide a replacement income if you’re unable to work due to illness or injury. It typically covers up to 75% of your regular income and can help you meet your financial obligations like mortgage repayments, bills, and daily living expenses. The specifics of what is covered can vary by policy, but it generally includes a wide range of illnesses and injuries that prevent you from working.
While Income Protection Insurance covers a wide range of situations, there are typically some exclusions. These can include illnesses or injuries resulting from self-inflicted harm, pre-existing conditions (unless disclosed and agreed upon by the insurer), normal pregnancy or childbirth, and certain specific illnesses or injuries listed in the policy. It also typically does not cover periods of unemployment not related to illness or injury.
Standard Income Protection Insurance usually does not cover redundancy or job loss that is not related to an illness or injury. However, some insurers offer optional redundancy cover as an add-on to their income protection policies. It’s important to read your policy documents carefully or speak with your insurer to understand what is and isn’t covered.
Whether you can make a claim for a pre-existing sickness or injury depends on your specific policy. Some insurers may exclude pre-existing conditions, while others may cover them but charge a higher premium. If a pre-existing condition is disclosed and accepted by the insurer at the time the policy is taken out, it is typically covered. Always check the terms and conditions of your policy and discuss this with your insurer or broker.
Business Insurance is a broad term encompassing various types of coverage designed to protect your business against potential risks. These could range from property damage and legal liabilities to employee-related risks and interruption of business operations.
Running a business comes with inherent risks. Business insurance plays a crucial role in protecting your investment by minimising financial risks associated with unexpected events. Key benefits of business insurance include:
When it comes to selecting a business insurance policy, here are some important factors to consider:
The nature of your business will dictate the type of cover you need. For example, a retail business may require public liability and property insurance, while a consulting firm may need professional indemnity cover.
Your level of coverage should be sufficient to cover significant risks without being unnecessarily high. Balance your coverage to ensure you’re adequately protected without overpaying.
Review the policy exclusions carefully. These are the situations in which your insurer won’t pay a claim.
Consider the cost of premiums in relation to your business budget. An overly expensive policy could create financial strain.
Selecting the right business insurance requires a good understanding of your business’s unique risks and requirements. For personalised advice that takes your business needs into account, consider consulting with an experienced broker like Hunter Galloway.
The type of business insurance you need depends on the nature of your business, the industry you’re in, and the specific risks associated with your operations. However, some common types of business insurance that many businesses need include Public Liability Insurance (covers legal costs and compensation payments if a third party sues your business for injury or damage), Professional Indemnity Insurance (covers legal costs and claims for damages if you make a mistake or give bad advice), and Business Property Insurance (covers your business premises and its contents against damage or loss).
There are many types of business insurance available in Australia. Some of the most common include:
– Public Liability Insurance
– Professional Indemnity Insurance
– Business Property Insurance
– Business Interruption Insurance (covers loss of income following insured damage to property)
– Workers Compensation Insurance (mandatory in most states if you have employees
– Product Liability Insurance (covers damage or injury caused by products you sell)
– Cyber Insurance (covers data breaches or cyber attacks)
– Motor Vehicle Insurance (if your business uses vehicles)
The cost of business insurance in Australia can vary widely depending on the type of insurance, the size and nature of your business, the level of coverage you need, and the specific risks associated with your business. For example, a small home-based business might pay a few hundred dollars per year for basic coverage, while a large manufacturing company might pay tens of thousands of dollars per year. It’s important to get quotes from multiple insurers to ensure you’re getting the best value for your needs.
Critical Illness or Trauma Insurance provides financial support if you’re diagnosed with or suffer from a serious illness or injury covered by the policy. The illnesses and conditions covered are specific and listed in the policy document, often including heart attack, stroke, cancer, and other major conditions.
Facing a critical illness can bring emotional, physical, and financial challenges. Here are some reasons why this type of insurance is crucial:
Here are some factors to consider when choosing a critical illness or trauma insurance policy:
Policies differ in the number and types of conditions they cover. Make sure your policy covers a comprehensive list of critical illnesses.
Understand the specifics of when the policy will pay out. It’s usually when you’re diagnosed, but some policies may have other triggers.
Premiums vary based on factors like your age, health, lifestyle, and the level of cover you choose. Consider what you can afford to pay regularly.
As with any policy, read the fine print to understand what’s not covered.
Critical Illness or Trauma Insurance can offer financial support during a challenging time. As with any type of risk insurance, it’s recommended to seek professional advice to choose a policy that fits your specific needs. The expert team at Hunter Galloway is here to guide you through the process.
Critical Illness or Trauma Insurance is a type of insurance that provides a lump sum payment if you are diagnosed with a specific illness or suffer an injury from a specific event that is covered by the policy. These illnesses and events are typically serious and potentially life-altering, such as cancer, stroke, or a heart attack.
The specific coverage of Critical Illness or Trauma Insurance can vary by policy, but it typically covers a range of serious illnesses and injuries. These can include cancer, heart attack, stroke, major organ transplant, coronary artery bypass surgery, and more. It’s important to read your policy documents carefully to understand what is and isn’t covered.
Whether you can get Critical Illness or Trauma Insurance with a pre-existing condition depends on the specific condition and the insurer. Some insurers may exclude the pre-existing condition from coverage, while others may cover it but charge a higher premium. It’s important to disclose any pre-existing conditions when applying for insurance.
If you’re diagnosed with a critical illness or suffer a trauma that is covered by your policy, you would submit a claim to your insurer. If the claim is approved, you would receive a lump sum payment. This money can be used however you need, whether that’s to cover medical expenses, pay for living expenses while you recover, or anything else.