Nobody wants to think about morbid “what if” scenarios. But, what if you fall ill or get injured and as a result can’t work? What happens to your family in the event of your death? By investing in financial protection, you are putting a contingency plan in place, ensuring the worse case scenario is avoided.

There are a number of financial protection options available. The information below should be used as a guide only. The best choice for you will be entirely dependent on your unique circumstances. A professional financial planner can help you determine what is right for you.

Income Protection
What is your greatest asset? Most people typically respond that their home, their car, or their investments are their greatest assets. However, your greatest asset is actually your ability to earn an income.

Most of us rely on our income to pay the mortgage or rent; to keep ourselves and our families clothed and fed; and maintain a comfortable standard of living. So protecting our ability to earn an income should be a high priority. Yet, while many of us insure our homes and possessions, we often ignore protecting our income. An income protection policy will pay a regular income if you are unable to work because of sickness or injury. Whether the disability is as serious as cancer or as minor as a broken arm, income protection provides a simple, cost-effective safety net.

Most policies will pay up to 75 per cent of your average monthly income (net of business expenses but before tax), and will cover you against various conditions, which could disrupt your ability to earn an income.

Income protection is particularly important to the self-employed, who cannot rely on short-term sick leave from an employer.

Business Expense Protection
Business expense protection covers your business against fixed costs like rent, lease arrangements and non-income producing employees' salaries, should you or your partner suffer a serious sickness or injury.

Life Insurance
A life insurance policy provides financial assistance in the form of a lump sum to your family or other dependents in the event of your death. The proceeds can be used to meet your family’s outstanding commitments, such as the mortgage on the family home, and to maintain your family’s standard of living.

There is no doubt that no price can ever be put on the value of a human life. However, life insurance is a safety net that allows your family to cope financially if you or your partner died. In what would be an emotionally devastating time, life insurance removes one major stress – financial insecurity.

Term life insurance provides death cover only - if the life insured does not die within the specified term, by age 65, for example, the policy is cancelled and there is no surrender value. This type of policy has no savings or investment component - it is only a means of managing risk.

Ensuring you have adequate life insurance for your individual circumstances can be a difficult task. A financial planner can help you by highlighting areas to consider when calculating the amount of life insurance that you require.

Trauma Insurance
Most of us know of someone that has suffered from a serious illness. While modern medicine can provide many people with a good chance of recovery, the financial consequences of a serious illness can be devastating. Bills for example don't stop, just because you're ill. A serious illness, such as cancer, a stroke, a heart attack or any one of a number of other major illnesses, can strike at any time, causing physical and emotional trauma.

For those recovering from such an illness, or facing a lengthy period of incapacitation or recuperation, there is often the financial burden of medical bills and expenses, the ongoing costs of rehabilitation and care, possible modifications to the home, and forced early retirement.

Few people have the necessary savings to pay all these expenses or to manage without a regular income.

Trauma insurance can offer relief by paying a lump sum in the event of a specified condition, helping to ease the financial burden on both the insured and the family.

Business Expense Protection
Business expense protection covers your business against fixed costs like rent, lease arrangements and non income producing employees’ salaries, should you or your partner suffer a serious sickness or injury.

The plan can cover you for up to 100 per cent of your eligible fixed expenses while you are unable to work due to sickness or injury.