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How To Protect Your Assets

You buy polish to protect your car. You buy home and contents insurance to protect your family home in the event of a fire or theft. However, many Australian’s do not protect their income, their hard earned assets and their underlying wealth accumulated over the years.

What would happen if you had an accident or sickness that stopped you from earning an income – stopping your cash flow?
-    What happens to your lifestyle if you have no income coming in?
-    How do you pay the bills?
-    What happens to the family home if you cannot repay the debt?

Fleming Financial Planning can help you review what areas you need to cover yourself for, and how to implement the cover in the most affordable way.

Asset Protection Planning

In the event that someone files a successful legal claim, liability action or bankruptcy against you or your business, can result in you losing all of your assets. Asset Protection Planning is the implementation of various ownership structures to put a person’s individual and business assets beyond the reach of future potential creditors.

The planning process identifies what assets to protect from creditors, from public and professional liability, personal and business relationship breakdown and influence on estate beneficiaries (where an estate is involved).

Asset Protection Planning is specific to each business owners’ situation, and is a complex area to work through. Specialized guidance should be sought for your asset protection planning needs. In reality, every business needs an asset protection plan, as do many individuals.

                                 

Compare the Types of Insurance

Personal Insurance is an excellent way to protect your lifestyle & assets after an unexpected event.

Risk Possible Solution
You fall very ill and are unable to pay your bills because of loss of income Income Protection insurance;
Replace a portion of income each month whilst unable to work.
Your family is unable to pay the home mortgage if you pass away Life Insurance;
Lump sum that pays debts and provides for dependants.
You have an accident and are permanently disabled and can’t work again. Total and Permanent Disability Insurance;
Lump sum to pay medical costs, debts, and own lifestyle
You are diagnosed with a major disease and need cash fast to provide for your medical expenses. Trauma Insurance;
Lump sum to pay for medical and/or debts.
Your business partner dies unexpectedly – “what happens to business partners share?” Business Succession Planning;
Life insurance that pays for deceased partner’s share of business, allowing your business to continue.


Underinsurance in our Community

Of the 1000+ Australians aged 18-64 who were asked “what would happen if a family member suffered a terminal illness or passed away”, it was found that 70 per cent would be forced to sell their personal assets, including their family home.

The following results were compiled from an online study conducted by Comminsure, November 2011.

 

More than half of the families would have to rely on support from the government via Centrelink if a family member passed away or became terminally ill.

Personal Insurance is an excellent way to protect your lifestyle and assets after an unexpected event. It protects up to 75% of your income if you are unable to work, or a lump sum if you pass away, become disabled, or suffer a major trauma.

Life Insurance under your Superannuation cover is not enough;

Many Australians don’t know they have insurance through their super fund, and yet the cover usually isn’t enough*.


 
A 2008 survey by the Australian Institute of Superannuation Trustees (AIST) and Industry Funds Forum (IFF)* revealed that "one in two superannuation industry fund members were underinsured by $100,000 or more".

Specifically results of the survey showed that:

  1. 50% are underinsured by $100,000 for life insurance.
  2. 74% are underinsured by $100,000 for TPD.
  3. 45% are underinsured by $1000 a month for income protection.

Rice Warner Actuaries estimate that life insurance cover within super is on average only 20% of what is needed.

Research commissioned by IFSA (Investment & Financial Services Association) in 2005 showed that only 4% of Australian families with dependent children have adequate levels of insurance cover (that is 10 times earnings as recommended by Rice Warner Actuaries). This means that Australian families are critically underinsured to the tune of $1.37 trillion.

Advice on Insurance

Nearly 80% of Australians are under-insured.  Fleming Financial Planning can assist in preparing the right quotes and implementing personal insurances to protect you and/or your business in the event of an unforseen event.  Having the right insurance in place is pivotal in securing your financial future.

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Office Address
Fleming Financial Planning
Address: 13 Balaclava Street, Woolloongabba, QLD, 4102
Email: admin@flemingfp.com.au