Bad things happen. Make sure your clients are protected.

As a broker, my job is to make sure a client has the right loan so they can get to where they want to go in life. More than ever with the high level of debt people are taking on, it's important to make sure that clients are protected from the good, the bad and the ugly that can happen in life. A touchy subject, but I don't want them to have money troubles and possibly lose their home if something bad was to happen. #NotOnMyWatch

Here are the main types of personal insurance I run through with my clients, it’s all about protecting a clients income - their mortgage and lifestyle.

1. Income protection (aka income replacement) - making sure bills can be paid if they are unable to work due to serious injury or illness.
When a person is unable to work for an extended period of time, it can have a devastating impact on their financial position. Income protection pays up to 75% of their income to ensure they can make ends meet in the event they have to take unplanned time off work. Many income protection products can cover the client if they are made redundant and offer the option of covering loan repayments.

2. Life insurance - making sure their family can pay the mortgage and everyday expenses if they weren’t around
Life insurance pays a lump sum to the family if the income earner was to die or be diagnosed with a terminal illness.This money can be used to pay off the mortgage and maintain the family’s lifestyle.

3. Total and Permanent Disability (TPD)
Making sure they are covered if they suffer an illness or injury that leaves them totally and permanently disabled. This cover pays a lump sum which can be used to pay off the mortgage, for ongoing medical expenses or to make necessary modifications to the home.

4. Trauma Cover (aka Critical Illness)
Making sure they are covered if they are diagnosed with a serious critical illness - like cancer, heart attack, stroke, kidney failure.This cover pays a lump sum and this money can be used to pay for treatment, clear any debts and help make lifestyle changes they need to get better.

As with all things, everybody’s circumstances are different - but bottom line, insurance is super important no matter who you are. It’s the client’s decision whether to take out these types of insurances, but I see it as my job to make sure they have the knowledge of what types of insurances are out there and who they should speak to, to make sure they have the right levels of cover, structured in the right way, for the right cost.

I recommend that my clients see a financial planner specialising in personal protection insurances for a cost effective solution that’s right for them.