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Do you know what cover you have?

Wealth protection is an essential part of every financial plan. What would happen if you were injured, fell ill or died? Without income protection, trauma, life and TPD insurance, any wealth you’ve built up can rapidly erode as a result of an accident or illness.

One of the reasons many Australian’s do not take out adequate insurance is due to the cost of the premium. One option you may not have considered is to take out insurance via superannuation. By doing so you can obtain a tax deduction for the contributions (premiums) paid to superannuation.

There are implications for taking out insurance via superannuation so before taking out any cover, you should speak with your Count Adviser to discuss whether insurance via super is the best option for you.

Once you have made the decision to take out insurance, it is just as important to ensure you fully understand your policy and review it annually to ensure both the level of cover and policy features continue to meet your needs.

Below is a story which illustrates how important it is to ensure you fully understand your insurance policy – it might just change your life!

In March 2009, Gordon*, was still a reasonably new client to MoonCunningham in Beverly Hills, NSW. Gordon was a successful business owner who had in recent years closed down his businesses and retired. This was unfortunately due to his ongoing battle with a debilitating illness. Gordon had initially come to MoonCunningham to seek advice on his pension, investments and self managed super fund.

However, when reviewing Gordon’s financial situation, Count Adviser Colin Goldsmith**, came across a current personal superannuation fund. This fund had a $250,000 life and disability insurance policy attached and Gordon was unaware that he could be entitled to these benefits. On Gordon’s behalf, Colin initiated the claim process.

Claiming the benefit was not an easy process as Gordon’s business structure had been complex. Using his experience and knowledge, Colin, organised the necessary documentation. After the required assessment process, the life insurance company determined that Gordon had in fact been totally and permanently disabled since February 2007.

Colin’s investigations, experience and quick actions helped Gordon gain a benefit. With a refund of premiums and a lump sum payout of the remaining superannuation balance, Gordon was paid an amount in excess of $500,000. By seeking professional advice Gordon found himself in a position of from not realising he had access to a benefit to receiving a payment of $500,000 all because of the involvement of his adviser.

*name changed for privacy purposes
**Colin Goldsmith is an Authorised Representative of Count Financial Limited.
Before you implement any strategies speak to your Count Adviser about advice that suits your personal needs.