While you can never predict what’s in store for your future, you can at least be prepared. Eclipse Financial Services can help protect you, your family and your business against death, disability and major illness with life and income protection insurance. We will tailor-make a package that suits your personal and/or business structure.
When you have an appointment with us to discuss life insurance, we will discuss a range of issues in the following steps:
Establishing the situation
We will need to find out your assets and debts, income and expenses, family makeup, family support network, business structure and risks if self-employed or in a partnership.
Analysing requirements
Based on this information, we will calculate the correct levels of cover and what types of cover are needed.
Deciding on the right package
We will then compare over 8 different life insurance companies’ policies to find the most suitable for your situation. At this stage we may need to review whether the recommended levels of cover are affordable and possibly reducing the cover to meet what you can afford.
Application
If you would like to go ahead and apply for a policy, it is a matter of completing the application paperwork and supporting documents, submitting these to the life insurance company and then we will guide you through the medical underwriting process.
Here is one case study example of how we’re able to help our clients with their life insurance needs.
Fred and Wilma are both in their mid-30s with two children in primary school. Fred works full-time on $52,000 per year and Wilma part-time on $15,000 per year. They have a $250,000 home loan and a car loan of $15,000 with combined payments of $2,200 per month. They have $50,000 and $28,000 in super respectively with $100,000 death cover each via super. The following outlines a simple insurance analysis that we were able to undertake for them:
Income Protection protects the main source of family cash flow, and in this case it is Fred’s wage. We would recommend the couple would need a policy paying $3,125pm if Fred is off work for more than 30 days through to Age 65 if permanently disabled.
A policy would be required for:
| Required lump sum |
$265,000 |
| Repay Debts |
$ 15,000 |
| Funeral/ renovations |
$ 15,000 |
Lump sum to invest to provide family income of
$3,125 per month for 20 years @ say 8% |
$467,233 |
| TOTAL |
$747,233 |
Death - $747,233 less $150,000 from super = $597,233
Permanent disability and Major Medical Trauma - $747,233 less super $50,000, less lump sum for income (due to Income Protection) $467,233 = $230,000
Wilma’s income is too low to cover so she requires a lump sum policy to cover clearing the debts and providing some cash so say $300,000 for Death, TPD and Major Medical Trauma. Fred would then be able to divert the money going to loan payments toward getting some help around home and making up for Wilma’s lost wage.
