The Minimalist Guide to Life Insurance for Sydney Accountants
Personal finances can be complicated, and when you spend night and day tending to your clients’ accounts, the last thing you want to do is work with more financials. Life insurance cover is one of the most important financial decisions you can make and has the potential to affect your family for years to come and possibly even the rest of their lives. Life insurance for accountants in Sydney should take into account your professional and personal needs without overcomplicating your life or leaving you sifting through mountains of paperwork.
We know you’ve dealt with insurance from the other side of the table. You’ve seen the wide range of premiums your clients pay and the value of the money that they’re receiving in the event of a claim. You’re not new to insurance, and that’s a good thing. That’s why we’re keeping this guide short, sweet, and to the point.
What Should an Accountant’s Life Insurance Policy REALLY Cover?
If you’re not interested in a policy that covers everything under the sun, you need to know what’s really necessary – not only for you, but for your business. Depending on your personal circumstances, you may be able to get away without some types of insurance, but for the sake of your loved ones, and your business, make sure you consider the following in your life insurance portfolio to ensure you do not leave yourself or them exposed to unnecessary risk.
When most people think of Life insurance, this is what comes to mind. Basic Life insurance, also called death insurance, and accidental death insurance, is the cover that provides for your final expenses and leaves funds behind for your loved ones to survive on in your absence. Your cover should at least consider:
- Education and care for your kids
- Final expenses
- Ongoing income for living expenses for your family
- Care and retirement funding for your spouse
It adds up quickly, especially considering that higher education expenses increase by approximately 5% annually here in Australia.
TPD, also called Total and Permanent Disability cover, provides for you and your family in the event that a disability or illness leaves you permanently incapable of working ever again. Just like life insurance, it’s one policy you hope you’ll never reap the rewards of investing in, but it’s an important way to protect your family – just in case.
Another insurance policy that can prove priceless in some of the worst circumstances is Trauma insurance. Also called “living” or “crisis” insurance, you get a tax-free, lump-sum payment upon diagnosis of a major illness.
For chronic illnesses, Trauma cover can provide for costly medical treatments that might otherwise be out of reach. Adaptations may need to be made to accommodate you in your home and these funds can provide for such expenses too.
Some of the major conditions covered by Trauma insurance include:
- Cancer (General)
- Cancer (Male and Female)
- Coronary By-Pass Surgery
- Heart Attack
- Benign Brain Tumours
- Chronic Kidney Failure
- Chronic Liver Disease
- Chronic Lung Disease
- Dementia & Alzheimer’s
- Major Head Trauma
- Muscular Dystrophy
This list isn’t exhaustive, so be certain to ask the Trauma insurers you are considering about the conditions their policies cover. Read the fine print on the definitions used, as well – they can make a major difference in your ability to obtain a payout. Of course, if you don’t have time to memorise a world of new terminology and compare hundreds of plans, our advisers are here for you.
Fairbridge specialist Life insurance advisers understand the demands of running an accounting practice and we’ve covered hundreds of professionals in your field. Our job is to cut down on the amount of paperwork you need to sift through – while at the same time remaining confident that you are putting quality cover in place.
We are also accredited advisers for the PPS Mutual insurance products which have been tailored for, and are exclusively available to, qualified professionals such as accountants, engineers, doctors and lawyers in Australia.
Business Expense Cover
Many accountants operate their own firms and practices. If that’s the case for you, Business Expense coverage could be crucial to your business’s survival if you fall ill. Don’t fall into the trap of thinking that income protection cover, business interruption insurance, or workman’s compensation will cover the continued fixed costs your business faces when you can’t work due to injury or illness. They won’t.
As a business owner and an independent professional, choosing a good, tax-deductible, Business Expense cover ensures that once you are back in the office, you can pick up where you left off because the fixed costs like rent, professional memberships, and utilities were paid while you were out.
Income Protection Cover
The final piece of the insurance puzzle for Sydney accountants is income protection. Now that you’ve protected your family and your business, it’s time to think about your own finances. When you fall ill or are injured and unable to work, Income Protection insurance can provide up to 75% of your salary to cover ongoing living expenses. A waiting period is often required and the amount and conditions of this policy vary widely from one insurer to the next. Some versions of Income Protection insurance are nearly identical to TPD policies. Read the fine print when you look for this type of insurance to avoid leaving yourself uncovered in some instances and doubly-covered in others.
Life Insurance Premiums
You’re probably well aware that for insurance held within the superannuation environment, premiums can be treated as employer or personal contributions, and that some are tax deductible. Did you realise that not all premiums work the same way?
Understanding the difference and the financial impact of Stepped and Level premiums is often the first challenge Life insurance buyers face, but there are several more. It might feel overwhelming to tackle this process on your own. Fairbridge advisers offer unbiased advice on premium options and can help you to identify the long and short-term impacts of each premium option available to you.
We have over 100 combined years of specialist experience in dealing with Life insurance for accountants in Sydney. Contact a Fairbridge adviser today.