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Risk management and insurance services are an important part of ensuring long-term personal financial security. Therefore, it is essential to understand how these services can be utilised to reduce the financial risk of life’s unexpected challenges. Given everyone’s financial circumstances are so personalised, a financial adviser in Melbourne can be employed to provide insight on the appropriate solution for your needs.

Understanding Personal Insurance Services

At the core of personal risk management is insurance services. Personal insurance is a highly personalised product that must be tailored to suit individual circumstances and budgets. Each person’s coverage needs can vary significantly based on factors such as income, debts, and personal circumstances. This can include how many dependants you have, who is your next of kin, how old are you, do you work in a particularly dangerous industry etc. This underscores the importance of assessing the right amount and type of coverage to ensure adequate protection. Moreover, not all insurance policies are created equal—some offer additional benefits that enhance their effectiveness in addressing specific needs.

Strategies to Make Insurance More Affordable

Navigating the realm of insurance can be daunting, as it is highly tailored to each individuals’ circumstances. However, there are strategies available to make insurance more affordable without compromising on coverage. Financial advisers can help implement and recommend strategies to clients based on their circumstances. Strategies may include taking advantage of the insurance options within superannuation, which can become more affordable by improving tax effectiveness. Additionally, combining insurance cover with family members can lead to reduced premiums, while carefully selecting the right combination of benefits and options can optimise coverage based on individual needs.

Types of Personal Insurance

Personal insurance encompasses various types of coverage designed to protect against different risks.

Income Protection Insurance
Income protection insurance is a financial safety net designed to protect individuals against the loss of income due to illness or injury. In essence, it provides a source of ongoing monthly benefit, typically up to 75% of the policyholder’s gross income if they are unable to work and earn an income due to a covered medical condition.

Life Insurance
Life insurance is a contractual agreement between an individual and an insurance company where the insurer agrees to pay a predetermined sum of money, known as the death benefit, to designated beneficiaries upon the insured person’s death. It serves as a financial safety net for loved ones, providing them with financial support and security in the event of the policyholder’s passing, especially if they are the primary income source for a family. Life insurance helps to ensure that beneficiaries can maintain their standard of living, pay off debts, cover funeral expenses, and meet other financial obligations without facing undue financial hardship.

Trauma Insurance
Trauma insurance is a type of insurance coverage that provides a lump sum payment upon the diagnosis of specified medical conditions or illnesses outlined in the policy. These conditions typically include serious illnesses such as cancer, heart attack, stroke, and major organ transplants, among others. The lump sum payment offered by trauma insurance can be used to cover medical expenses, rehabilitation costs, modifications to living arrangements, and other financial needs that may arise because of the illness.

Child Cover
Child cover is a type of insurance policy that provides financial protection for children between the ages of 2 and 15. In the unfortunate event of a child’s death or diagnosis of a specified trauma event, such as cancer, paralysis, or meningitis, child cover offers a lump sum payment to help support the family during a challenging time. This payment can be used to cover medical expenses, additional care needs, or other financial obligations that may arise.

Total & Permanent Disablement (TPD) insurance
Total and Permanent Disability (TPD) insurance is a form of coverage that provides a lump sum payment to the insured individual in the event they become totally and permanently disabled due to illness or injury. Unlike income protection insurance, which replaces lost income, TPD insurance offers financial support to cover the significant costs associated with long-term disabilities, such as medical expenses, home modifications, and ongoing care.

Importance of Professional Guidance

Financial advisers possess the knowledge and experience to assess insurance needs accurately and recommend tailored strategies that align with individual goals and circumstances. This includes conducting annual reviews to ensure that insurance coverage remains relevant and adequate considering changing life circumstances. By entrusting their insurance and risk management to a financial adviser, individuals can rest assured that their financial security is comprehensively addressed.

Do you need a financial adviser in Melbourne?

Hiring the services of a financial adviser in Melbourne at Centre Of Wisdom provides you with a qualified financial partner for everything finance related. From investment properties to making sure your taxes are done correctly and on time, Centre of Wisdom is a name you can trust for financial planning in Melbourne

Get in contact today via the contact page on our website! Or call either of our branches:

Upper Ferntree Gully: 03 9758 1202

Bentleigh East: 03 9570 4565