INCOME PROTECTION &
PERSONAL INSURANCE ADVICE
Personal insurance is about more than ticking a box, it’s about making sure the right cover is in place, structured correctly, and actually pays out when you need it most. Getting advice ensures your cover reflects your real financial obligations, not just a default policy from your super fund.
HOW A PERSONAL INSURANCE ADVISOR CAN HELP
A financial adviser assesses your complete financial picture – income, debts, dependants, assets and lifestyle – to determine exactly what you need to protect and how much cover is appropriate. This means you’re not over-insured and paying unnecessary premiums, or under-insured and exposed to serious risk.
At Viridian, we conduct a comprehensive review of your personal insurance needs and ensure your cover is structured correctly – including policy ownership, tax treatment of benefits, cash flow capacity and the needs of any financial dependants. We also coordinate your insurance arrangements with your superannuation, estate plan and broader financial strategy.
Our personal insurance advice covers:
- Income protection – replacing up to 70% of your pre-disability income if you’re unable to work
- Life cover – protecting your family if you pass away or are terminally ill
- Total and Permanent Disability (TPD) – lump sum cover if you can never work again
- Trauma / critical illness cover – financial support on diagnosis of cancer, heart attack, stroke and other serious conditions
- Insurance inside vs outside super – comparing cost, cover quality and tax treatment
- Policy ownership structuring for tax efficiency
- Business expense and key person insurance
- Income protection for self-employed Australians
- Reviewing and updating existing cover as your circumstances change
- Coordinating insurance with your superannuation death benefit nominations
FAQs
What is income protection insurance and do I need it?
Income protection insurance provides a regular monthly payment, typically up to 70% of your pre-disability income, if you’re unable to work due to illness or injury. For most working Australians, their ability to earn an income is their most valuable asset, and losing it even temporarily can have serious financial consequences. Whether you need it, and how much cover is appropriate, depends on your income, financial commitments, existing sick leave entitlements and any cover you may already hold inside your superannuation. A financial adviser can assess your situation and help you understand whether your current arrangements leave you exposed.
What is the difference between life cover, TPD, trauma and income protection?
These four types of personal insurance each serve a different purpose. Life cover pays a lump sum to your family or estate if you pass away or are diagnosed with a terminal illness. TPD (Total and Permanent Disability) pays a lump sum if you become permanently unable to work. Trauma or critical illness cover pays a lump sum on diagnosis of a serious condition such as cancer, heart attack or stroke, even if you’re expected to recover. Income protection provides ongoing monthly payments if you’re temporarily unable to work due to illness or injury. Many people need a combination of these, and the right mix depends on your personal and financial circumstances.
Should I hold my insurance inside or outside superannuation?
Both options have advantages and trade-offs. Insurance held inside super is paid from your super balance rather than out of pocket, which can make premiums more manageable, but it reduces your retirement savings over time and the cover available inside super is often more limited. Insurance held outside super is paid directly and may offer broader cover options and different tax treatment of benefits. The right approach depends on your cash flow, tax position, the type of cover you need and your long-term retirement goals. An adviser can compare both options and help you find the right structure for your situation.
How much life insurance do I need?
The right amount of life cover depends on your financial obligations – including your mortgage, other debts, income replacement for your family, and any future costs such as education for your children. A common starting point is to consider what your family would need to maintain their lifestyle and meet financial commitments if you were no longer around. There’s no single formula that works for everyone, and getting the calculation wrong in either direction can have real consequences. A financial adviser can help you work through the numbers based on your specific situation.
Can I get income protection if I'm self-employed?
Yes, self-employed Australians can take out income protection insurance, and it’s often more important for the self-employed than for employees, who typically have access to sick leave and employer-funded entitlements. Premiums for income protection outside super are generally tax-deductible, which can make cover more affordable. The application process may require proof of income such as tax returns, and some occupations may have specific conditions. An adviser experienced with self-employed clients can help you find appropriate cover and structure it in the most tax-effective way.