Life can get so busy sometimes and it’s easy to overlook the important decisions we all need to make. Like choosing Personal Insurance. Having the right cover can give you real peace of mind. It really is the parachute that can catch you, and your family, when you fall.
Life Insurance can provide your family with a lump sum payment after you’ve passed, or after you have been diagnosed with a terminal illness. The main outcome you want from Life Insurance is to know it can provide financial security for your dependants. You want to protect their lifestyle, and help to alleviate major financial burdens in the future.
Debt, like the mortgage on the family home, can be serviced while you’re working. But how will those payments be met after you’ve gone? Without Life Insurance, families may feel the need to sell their home. Having the right cover can help them to avoid this added stress.
If you are the major breadwinner, replacing your salary will not be easy. However, if your Life Insurance can provide a substantial payout that be invested wisely, an income source can be created for the future.
A health challenge can come as quite a shock. And as you’re dealing with that stress, financial burdens can quickly emerge. But if you have the right cover in place, it can be easier to navigate the obstacles ahead of you.
If you become ill or injured and can’t work for a period of time, Income Protection can pay a portion of your lost income. This can help you to meet your living expenses while you recover. For anyone with a mortgage, the monthly payments from an Income Protection claim can be essential. When taking out this cover you should consider things like how long you’ll wait before receiving payments (30 to 90 days) and what percentage of your current income you’ll be entitled to (usually around 70%).
This insurance pays a lump sum payment upon diagnosis of a specified critical illness or injury, such as cancer or heart attack. It can help to cover medical expenses and support living costs during recovery. Critical Illness cover, sometimes called Trauma cover, provides financial flexibility at a time of stress.
TPD stands for Total and Permanent Disablement. TPD insurance pays a lump sum if you suffer an illness or injury that leaves you permanently unable to work. This cover is designed to assist with the cost of ongoing care, lifestyle adjustments, and financial commitments — helping you maintain independence and stability when work is no longer possible.
Importantly, TPD cover complements Income Protection — it’s paid on top of, not instead of, regular income support. While Income Protection provides ongoing monthly payments to help with day-to-day expenses, TPD delivers a one-off lump sum to help you make long-term adjustments and secure your financial future.
Close to 79% of Australians have car insurance.
But only 34% have life insurance.
Source: Council of Australian Life Insurers
The first step might seem like the hardest. But it gets so much easier once you’ve made a start. And of course, you’re not jumping into anything. You’ve got that ‘first meeting at our cost’ parachute strapped to your back. So, if we’re not a good fit, we can part ways on good terms, and you won’t be a cent out of pocket.
The first meeting is at our cost. This is where we get to understand who you are and what’s important to you. We want to get a picture of what you’d like to protect now, but also what you’re working towards. In that way, while you’re building your wealth, we can help to underpin it and get the right foundations in place.
In the second meeting we’ll present your personalised strategy, including one or more options that best fit your situation. Naturally a large amount of work goes into preparing this plan and so there is a charge for this stage.
The Statement of Advice (SOA) and the implementation of recommendations is the culmination of all the work done so far. The fee will depend on complexity (number of existing policies/super funds/health history). Alongside your advice fee, Parachute will also receive a commission from the insurer.
It can be hard navigating this alone, especially if you have multiple policies. Yearly claims data from APRA consistently show that outcomes are more successful when a financial adviser is involved. As Life insurance specialists, we understand the mechanics and thresholds inside policies. With this deep understanding of when and how a claim should be made, we know how to liaise with the insurers – and when to push back.
When people think about personal insurance, they often focus on “what happens if I die?” But the question they also need to ask themselves is, how can I navigate my way through a major setback and either rebuild my old life, or create a new way of living? The types of insurance that sit under Living cover include Income Protection, Critical Illness and TPD. They’re all options you should definitely explore as part of your overall protection plan.
When you’re young, healthy and debt free, life insurance probably doesn’t seem like something you need. But life changes quickly. One day you’re starting a new job, and the next, you’re buying a house and starting a family. Your needs evolve and keep evolving through life, so make sure you regularly review your insurance policies. Even if you’re still single and enjoying the good life, you might want to consider income protection so if you’re injured and unable to work, the bills can still be paid.
It’s easy to check. Just look at your super statements and you’ll see if life insurance premiums are being deducted from your balance. If you do, that’s good news. It means you have some level of cover. The question is, is it sufficient for your needs. For example, not all super funds offer income protection. The other thing to consider is, will the benefit paid be enough? Will it cover your family’s financial needs? Parachute can review the insurance in your super now and give you clarity around the policies you have now. We can also show you different ways you can adjust your current cover or switch to a new protection plan outside your super.
No. We are able to compare all insurance providers. We are not restricted in our choice. Our recommendations are based on the quality and cost of the cover provided, and how well their policies meet your needs.
Yes. Parachute does receive commissions from insurers. These commissions are set at the same percentage regardless of which insurer is chosen. We believe this provides a level playing field and removes any possible bias from the decision making process.
No. The first meeting with Parachute is at our cost. We want to be as accessible as possible so you can reach out and get to know us before you make any commitments.
