- Executive remuneration disclosure proposals for listed companies
- Get Started on Expense Management Today
- Public Sector Reform, Getting the Balance Right
- Australian Charities and Not-for-profits Commission commenced on 3 December 2012
- Corruption in sport: Do you really know how clean your organisation is?
- Crisis Recovery cover
- Superannuation Tax update: SuperStream
- Superannuation Tax update: SuperSeeker enhancements
- Superannuation Tax Update: Other tax changes effective from 1 July 2012
- 2012-13 Federal Budget update
- Group Protection
- Administration - Clearing House services
- Super system review - Progress to date
- Tax Alert: Queensland miners further targeted in changes to state mining taxes
- Tax Alert: ATO guidance released on margin scheme valuations
- Tax Alert: Superannuation Do's and Dont's
- Queensland State Budget 2012-13
- Tax Alert: “Son of Hold-back" Arrangements
- Tax Alert: Living Away From Home (LAFH) new law and ATO publishes reasonable food allowances
- Indirect Tax Update: October 2012
- Tax Alert: Australia’s new transfer pricing rules – Stage 1
- Transfer Pricing Alert: Stage 2 Reform Exposure Draft Released
With the incidence of cancer increasing year on year and the occurrence of cardiovascular diseases preventing many families from living a full life due to disability, it is becoming increasingly important to consider crisis cover as part of a personal protection plan.
Many Australian families struggle, both emotionally and financially, when someone in their family is diagnosed with a life threatening or debilitating health condition.
Whilst 90% of crisis claims are related to heart disease or cancer, crisis cover provides payouts for blindness, chronic liver disease, coma, major burns, major head trauma, motor neurone disease, paraplegia, multiple sclerosis and many more.
In previous generations it was more likely that the medical crisis event lead to death and subsequent potential life insurance claims. However there have now been significant advancements in modern medical treatments resulting in many who suffer the trauma event making a partial or full medical recovery. However, one must consider the financial recovery from loss of income, medical costs and other auxiliary services incurred whilst recuperating.
What is crisis recovery insurance?
Crisis Recovery Insurance provides a lump sum benefit which allows you the flexibility to allocate funds to pay medical expenses not covered by private health insurance, reducing debt, additional income replacement, changes in lifestyle (ramps, wheelchairs, new cars) and ability to recover without the immediate cash flow need to return to work.
The alternative may be sell the family home, draw down on savings or find external sources of income such as refinancing mortgages, extending credit card debts or relying on the income of family and friends.
What about TPD cover?
Many of us will have Total Permanent Disablement (TPD) cover within superannuation or maybe a policy in your own name. The general definition for a successful TPD claim is that the insurer believes you are unlikely to ever be able to engage in regular paid work again. Given this extensive definition it is unlikely you would receive a payout in the first instance of cancer, heart attack even multiple sclerosis whilst you are still working or have a chance to return to the workface.
Will my Income Protection cover me through illness and injury?
If you have suitable income protection insurance, and your illness or injury leaves you unable to work, up to 75% of your income may be covered by your income protection policy. Whilst this benefit should provide for the bulk of your living expenses such as food, clothing, loan repayments, school fees etc, this is a 25% reduction on previous income with the likelihood there will be additional once off and ongoing expenses for medical costs.
What should I do?
A comprehensive protection strategy will provide a recommendation for life, Total Permanent Disability, income protection and trauma cover. The amount and structure of benefits would be assessed on your individual needs, requirements and beliefs.