Reason In The "Silly Season"

Christmas is just around the corner; for most people it is a time of sharing, giving and just a little bit of over indulgence.

Whilst retailers see this as their busiest period of the year, they are not alone. The ‘silly season’ also signals the commencement of the busy period for Australia’s Emergency Service Departments, courtesy of the increased number of road accidents, alcohol-inspired incidents as well as failed home renovation attempts.

It’s hard to talk about, but no-one wants to spend Christmas gathered around the hospital bed of a loved one, rather than the dining table. If the worst happens families can endure considerable stress not only at Christmas time, but the following weeks, months and sometimes longer. During this time, families need to be able to focus on the most important task of supporting their loved one/s back to health and not have to worry about bills mounting up.

One way to help to reduce the financial stresses involved if the worst happens is by having the correct combination of Personal Risk Insurances. This allows a focus on recovery and rehabilitation. A typical insurance package will include a combination of the following insurance types:

• Life insurance – Payable on death to the surviving family. Funds received are often used to repay the home mortgage and provide additional funds to help with raising children or supporting a non-working spouse.

• Total Permanent Disability (TPD) insurance – Payable if unable to ever work again. Funds received are often used to replace income no longer earned from working, as well as to repay any out-of-pocket medical expenses. Other uses for the funds include repayment of the home mortgage and employing tradesmen to modify your home to accommodate a disabled occupant.

• Trauma insurance - Also known as Critical Illness; it is payable on diagnosis of severe medical conditions which may not lead to total permanent disablement but will still require significant periods of time off work for recovery and rehabilitation. Typical conditions covered include coma, loss of limbs or sight, severe burns and heart attack, just to name a few of the 30-50 conditions covered by a good quality policy. Funds received are often used to replace income no longer earned from working, as well as to repay any out of pocket medical expenses.

• Income Protection insurance – Payable for any injury or illness which prevents you from working for an extended period of time. Often timed to commence paying once all available sick leave and annual leave has been utilized. Good quality policies will continue to replace your income until you either return to work or reach age 70 if the disability is permanent. Typically cover is limited to 75% of your income, which can be boosted through a combination of TPD and Trauma insurances.

WHK Financial Planners are experts in tailoring Personal Risk Insurance packages to suit the needs of individual families.

No action should be taken solely on the material contained in this newsletter as the information is of a general nature and does not take into account personal circumstances. Before acting on any material contained in this newsletter you should seek professional advice. Please read the relevant Product Disclosure Statement before acquiring any financial product.

WHK Financial Planning Pty Ltd ABN 51 060 092 631 (WHKFP) may receive a fee for any advice it provides or for the implementation of an investment decision. WHKFP and its representatives may have a financial interest in financial products referred to in this newsletter.

WHKFP is the holder of Australian Financial Services Licence number 238244 – a WHK Group firm.