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Risk Insurances

“It’ll Never Happen to me?” Think Again!!!

As we welcome in the New 2011 Year, I would like you to do two things immediately which will ensure you don’t put your future at risk:
1. Read this article fully, and
2. Invest in Personal Protection Insurance if you don’t have it, or review your current level of coverage if you have not reviewed it for more than two (2) years.

Every year, studies have shown that families do not have sufficient personal risk insurances to provide for themselves and their family in the event of an untimely death, a longer term disability or a critical illness (such as cancer, stroke or heart attack).

Australian Medical Statistics Show:
• 23% of Australian male deaths in 2000 were between 25 and 64 1
• Every working Australian has a 1 in 3 chance of becoming disabled for more than 3 months before turning 65 2
• More than half of all serious accidents happen outside of work, so workers compensation does not apply 3
• Every year approximately 350,000 new cancer cases are diagnosed 4
• The largest cause of disability is illness – accounting for 70% 5
• The most prevalent and single largest killer of women between 30 and 60 is Breast Cancer, taking the lives of almost 7 women each day.  It is also the most likely form of cancer to affect women in their early ages 6
• Men have a 1 in 3 chance of developing some form of cancer throughout their lives 4
• The major cause of disability in Australian adults is stroke with over 40,000 recorded cases annually 4
• Men’s chances of having a coronary heart disease during their lifetime increase to 1 in 2 by the age of 40 7
•  Over 4 in 10 victims of heart attack will die within a year and in excess of 50% of these deaths occur before the sufferer reaches hospital. 8

Are These Statistics Designed to Scare You?
YES!  Car crashes, heart attacks, disease and illness, random acts of violence, back injuries, cancer – they’re all scary things that can change your life in an instant and dramatically impact your ability to work and earn an income.  Your income is your greatest asset in you and your family’s life.  Like your home and car, is it also well insured?

Personal Protection Insurance
Personal protection insurances will ensure that your assets are protected and debts are cleared in the event of the unforeseen death, major accident or major illness of a key financial member of your family.

There are four main forms of personal protection insurances:
1. Life (Term) Insurance – pays a lump sum upon the death of the life insured.
2. Total & Permanent Disability (TPD) Insurance – pays a lump sum upon the total & permanent disablement (as defined by the contract) of the life insured.
3. Trauma (Critical Illness) Insurance – pays a lump sum in the event of a major injury or illness (as defined by the contract) of the life insured.
4. Income Protection Insurance – pays a pre-determined monthly benefit for a pre-determined period of time in the event of an injury or illness, which prevents the life insured from working.  The definition of ‘working’, as in working in the previous occupation or in some other occupation, is defined by the life office.

It’s not just the breadwinner who needs risk insurance
Families typically insure the breadwinner, but many do not insure the home-maker.  However if the home-maker dies and is not insured, the breadwinner and their children could be left financially vulnerable.  Could the breadwinner afford to take extended time off work or take a less demanding but lower paying job so they could look after the children?  Or could the breadwinner afford to hire a carer to look after the children?

If the home-maker suffers a trauma and is not insured, could the breadwinner afford to pay all the medical bills and rehabilitation costs?  And take extended time off work so they could look after the spouse?  Or could the breadwinner afford to hire a nurse for the spouse?

How Baggetta & Co can help
Personal Risk Protection is just another area where Baggetta & Co can help you to make informed decisions and ensure that, unlike many Australians and their families, you will not be underinsured and deeply exposed to the financial risks that flow from injury, illness and loss of life. Contact us today and find out how our financial planning services can help protect your life and business!

Take the Test
Do you need insurance?  Do you have enough insurance protection?  Tick the boxes below which apply to you, to discover if you are exposed to risk:

• My personal protection insurances have not been reviewed for more than 2 years
• Neither my spouse or I currently have existing personal protection insurance policies
• I have financial dependents – spouse, children, etc
• I have significant debts – home mortgage, investment property, shares, car loan, personal loan, etc.
• I have negatively geared assets
• My ability to meet my repayments would decrease should I or my spouse lose our income for more than two months

If you ticked two or more of the boxes above, you have an exposure to risk that can be minimised by investing in personal protection insurance, or reviewing your existing personal protection insurance.

For further information, call me on 9317 7300. 
I can help you protect the assets you have worked so hard to build.


Paul Baggetta

1 Australian Institute of Health and Welfare, Australia’s Health 2002
2 Institute of Actuaries of Australia 2000
3 Australian Bureau of Statistics, National Survey 1995
4 Australian Institute of Health and Welfare, Cancer in Australia 1998
5 National Centre for Monitoring Cardiovascular Disease May 1999
6 The Garvan Institute of Medical Research 1997
7 Heart, Stroke and Vascular Diseases, Australian Facts 2001
8 National Heart Foundation Statistics, Australian Facts 2001 Highlights

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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained. Liability limited by a scheme approved under Professional Standards Legislation

Paul Baggetta is the Founder & Principal of Baggetta & Co (ABN 68 786 233 813).

Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.

Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.


Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.