This document provides a summary of different types of personal risk insurance: 1. Life insurance pays a lump sum if the policyholder dies or has a terminal illness. It is used to pay off debts and provide savings. 2. Total permanent disability insurance pays a lump sum if the policyholder becomes totally and permanently disabled. It is also used to pay off debts and provide savings. 3. Trauma insurance pays a lump sum if the policyholder suffers a medical trauma. It can be used to pay medical expenses and assist in difficult times. 4. Income protection insurance covers up to 75% of the policyholder's salary if they cannot work due to sickness or injury. It enables maintaining lifestyle while

2. Advice Warning
This presentation is intended to provide general information
only and has been prepared by Fidelis Financial Solutions ABN
22 154 372 979 without taking into account any particular
person's objectives, financial situation or needs. Investors
should, before acting on this information, consider the
appropriateness of this information having regard to their
personal objectives, financial situation or needs. We
recommend investors obtain financial advice specific to their
situation before making any financial investment or insurance
decision.
Please note all case studies on this site are for illustration only.

3. Your Finance Adviser
Credit Representative of
Australian
Credit Licence Number 389328

5. We are all reluctant in paying for
Personal insurances
up until something happens to us or a close
family member

6. We tend to think
We're
Invincible
And Nothing can
happen to us.

8. Therefore
Protecting your assets
and your family
will become an essential part
of your life and your
commitments.

9. Our duty
Having a proper set of
Protection.
insurances around you
should help you feel safer
and more comfortable
with unplanned and
unforeseen circumstances

10. Advice Warning
More than • Australians will be diagnosed with a serious illness in their working life.
(ABS Statistics)
3 out of 4
1 in 5 • will die or become seriously ill or injured. (The Lifewise Report)
Working age parents
1 out of 3 women • 1 out of 3 women and 1 out of 4 men will suffer from some form of cancer
during their lifetime. (The Cancer Council)
1 out of 4 men
• Australians are diagnosed every year with a long term medical condition;
77% of that is, a disease or other health problem that lasts for at least 6 months.
(Health and Welfare Report)
•
• hospitalisations every year are due to injury; which is the greatest cause of
1 out of 20 death in the first half of life, and leaves many with serious disabilities.
(Health and Welfare Report)
25% of men and • who die every year are under the age of 65 years old.
(Health and Welfare Report)
15% of women
95% of • Australians are not properly protected

11. The Four Main Types of
Personal Risk Insurance
LIFE TOTAL
PERMANENT
INSURANCE
also known as death or life cover DISABILITY
TPD
TRAUMA INCOME
also known as critical illness PROTECTION
also known as income insurance
insurance

12. 1 Life Insurance
(also known as death or life cover)
. lump sum
It pays an agreed
in the event of your
death or
terminal illness

13. 1 Life Insurance
(also known as death or life cover)
expected
.
to die within
12
months

14. Mostly used to
pay off debts
and/or provide a
savings buffer.

15. Modern Policies
may allow a 00
Partial Payment
before death $
$

16. Advice Warning
when taking out life insurance
Total debts
mortgages, personal
loans,
Anticipated future costs children's
education retirement
Amount of capital
lifestyle

17. Factors Affecting Premium
Age
Gender
Smoker or
non-smoker
Occupation
Sum to be insured and
whether you want Stepped or
Level premiums.

18. 2.
Total Permanent Disability
(or simply TPD)
It pays a
lump sum
if you’re totally and
Permanently
disabled.

19. Mostly used to
pay off debts
and/or provide a
savings buffer.

20. Depending on policy, TPD will
cover when insured cannot work
again in “Own” or “Any”
occupation.

21. TPD may provide:
Capital
Capital
pay unexpected expenses
disability
Provision
Help

22. TPD may come as an add-on
to Life Insurance
Is often an advance of all or
part of death cover and will
effectively reduce Life
Insurance payout sum.
Insurance Definitions

23. 3 Trauma Insurance
(also known as critical illness insurance)
.lump sum
It pays an agreed
in the event that you
suffer a medical
trauma
that impact your life.

24. 3 Trauma Insurance
(also known as critical illness insurance)
.
There is cover
available for over
Cancer
Stroke
70 different Heart attack
Diabetes
types of trauma
including: Loss of limbs

25. used to
pay medical expenses
and assist in difficult
times.

26. 3 Trauma Insurance
(also known as critical illness insurance)
. Is not dependent on
whether or not the
insured is able to
continue to work.

28. Advice Warning
when taking out Trauma Insurance:
The cost
The ongoing cost
Necessary changes
Payments
Maintaining lifestyle

29. 4 Income Protection
(also known as Income Insurance)
.
Covers up to
75% of your salary
for a period of time if you’re
temporarily unable to
work
because of sickness or injury.

30. It enables you to
partially maintain
your lifestyle
while you return to
the workforce.

31. Benefits of cover
Protection of income
Provides income
repayments
ongoing expenses

32. Waiting and Benefit
Periods Respectively:
Depending on the policy and insurer,
Waiting periods typically include:
60 90
days days
30 1
days year
2
years
14
days
Options typically include:
2 years, 5 years or to age 65

33. Tax Consideration
Insurance Inside super Outside super
Premium Premiums are tax-deductible Premiums not tax-
Life deductible
Benefit Tax free to dependants Tax free to any beneficiary
Non-dependants taxed up to
31.5%
Premium Premiums may be tax-deductible Premiums not tax-
TPD deductible
Benefit Taxed as part of super Tax free
Income Premium Premiums may be tax deductible Premiums are tax-
Protection deductible
Benefit Subject to income tax rates Subject to income tax rates
Trauma Premiums Is not available Premiums are not tax
Insurance deductible
Benefit Is not available Tax Free

34. Tax Consideration
Life Insurance:
Outside Super premiums are generally not tax deductible, however this means that the
benefit is generally tax free.
Trauma Insurance:
Is not available inside Superannuation. The benefit is tax free and there are no
restrictions on how you can use the payment.
Income Protection:
Outside Super premiums are generally 100% tax deductible, providing potential
savings of up to 46.5% depending on your marginal tax rate. Inside Super the premium
may be tax deductible depending on the insurance policy which has to align with
government regulations.
Total & Permanent Disability Insurance:
Outside Super premiums are not tax deductible; however benefit payment is tax free if
paid to the insured person.

35. Insurance Definitions
All insurances can be done outside
your superannuation. But only three insurances can be
done inside super (life, TPD ‘any’ occupation, and
income protection). TPD ‘own’ occupation and trauma
insurance are not permitted within superannuation.

36. Definition of
‘Any’ and ‘Own’
‘Any’ occupation:
means the inability to perform any
occupation to which you are suited by
education, training or experience
‘Own’ occupation:
means never able to return to
occupations similar to your current
occupation.
Insurance Definitions

37. Types of
Insurance Premiums
Stepped:
is calculated based on your age, meaning the
younger you are the cheaper the cost.
Therefore as you get older it could become
harder and harder to afford the payments.
Available inside Super.
Level:
is calculated on a average of the premium,
meaning you might pay more younger but
pay less when you get older when comparing
with stepped. Unavailable inside Super.
Insurance Definitions

38. Inside Super

39. Insurance Inside Super
Less
Advantages
More
Disadvantages

40. Advantages
You pay Life and TPD premiums with pre-tax dollars, so
1
they are cheaper.
automatic acceptance
2

41. Disadvantages
1 Level premiums are not available inside super.
You may not be able to access the benefits until
2 retirement (payments are treated as superannuation
moneys).
3 Life Insurance benefit is taxed to non dependants.
4 TPD Insurance benefits is taxed as part of Super.
5 You cannot insure for TPD ‘own’ occupation.
Trauma Insurance is not available inside your
6
superannuation.
Conditions of release apply if insurance policies are held
7
within Superannuation.

42. Outside Super

43. Insurance Inside Super
More Less
Advantages Disadvantages
of Insurance of Insurance

44. Advantages
Portability
1
immediate access because
2
not taxed
3
4 Level Stepped premiums
5 ‘Own’ Occupation
6 Trauma insurance

45. Disadvantages
Premiums paid with post-tax dollars, so they are more
1
expensive.
Medical check up may be required depending on the
2
insurance provider.
Insurance premiums will contribute to total yearly non-
3
concessional contributions.

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50. 1300 764 247
finance@fidelisfinancial.com.au
www.fidelisfinancial.com.au