A beginners guide to understanding personal financial risk.

1. Understanding Personal Risk Insurance Andrew Hayes Wealth Engine Pty Ltd

2. Disclaimer-General Advice Warning This document has been prepared by Wealth Engine Pty Ltd ACN 142 579 an Authorised Representative of WealthSure Pty Ltd AFSL 238030 and is intended to be a general advice only. The document is not intended to be comprehensive and should not be relied upon as such. In preparing this document, we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained in this document to particular circumstances. Wealth Engine Pty Ltd, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained in this document.

4. Term Life Cover (‘Life’)

5. Total & Permanent Disablement (‘TPD’)

6. Income Protection

8. Some Sobering Facts Underinsurance remains a significant issue in the Australian Market. Australia’s small business and self employed sector is underinsured to the tune of $265 billion. The average Australian family has around $14,500 in non mortgage debt and spends almost $310 a week raising their children. 1,464 people were killed in road crashes in 2008 and more than 50,000 people were hospitalized due to land transport accidents in 2005-6. Around 4,400 parents with dependent children die each year. The average Australian family owes more than $300,000 on their home. For every home lost through fire, 3 homes are lost following a death in the family. 1 in 3 males and 1 in 4 females will develop cancer by age 75. There are 50,000 heart attacks in Australia each year. There are over 8,000 people with spinal cord injuries in Australia. Of the people injured at work in the last 12 months only 57% received financial assistance and only 55% received Workers Compensation.

10. Terminal illness benefit

11. Future insurability option

13. Pay for child care or home help to aid the remaining spouse

14. maintain your family’s future standard of living and health care

16. Rough Rule of Thumb – Life Cover Method 2: Sum of all the expenses. This method arrives at a lump sum after adding together all the common expenses a family or person may face. Repayment of mortgages and other debts, school fees, income replacement, nanny/carer fees and or home modifications in the case of TPD.

18. Must be unable to follow your own occupation for three months before a claim is made

19. Two occupation definitions used by insurers to assess the claim

20. Any occupation

21. Own occupation

23. Pay for disability related costs including rehabilitation

24. Pay for changes to your lifestyle, e.g. to refit your home

25. Provide a reserve to use as an income replacement to fund future living costs

27. It is estimated that less than 10% of the working population has income protection (Survey by Research International)

28. What are your options if your income suddenly stopped?

29. Sick leave

30. Savings

31. Social Security or Workers Compensation

33. You can select the period for which benefits are payable for any one claim. The maximum benefit period is to age 65

35. Pay for mortgage or other debt repayments

38. A broad range of common illness and injuries

39. Cancer

40. Heart attack

41. Stroke

42. etc

43. Paid on diagnosis

45. Keep business going

46. Home help is affordable

47. Income for dependants

48. Special treatment affordable and available

49. Repay debt

50. Put affairs in order