The survival and success of your business is critical - it is probably your main source of income and may play a big part in whether you meet your retirement goals.
To give your business its best chance to survive over the long term, and succeed, you need to get smart about protection. No matter how small or large your business, or how it is structured, each business will face a number of risks. These risks could relate to the economy, competition, or changing consumer behaviour and can be hard to control. However, one type of risk you can have a degree of control over is people risk - that is, the financial impact to your business if a key person dies, becomes disabled or suffers a specific medical condition.
Moreover, protection is not just about guarding the financial health of your business, it's also about protecting the ownership of your business - that is, helping to achieve a smooth transfer of business ownership should one of the business owners suddenly exit due to sickness, injury or death.
Why insurance is an important consideration
We all want to avoid thinking about illness, injury and early death. Here are some facts and figures to remind you of just how risky life can be - and why insurance is an important consideration.
- One in five families will be affected by the death of a parent, or a serious accident or illness that renders a parent unable to work1
- Around 55,000 Australians suffer a heart attack each year2
- 1 in 2 men and 1 in 3 women are expected to be diagnosed with cancer before the age of 853
- It is estimated that more than 43,700 people died from cancer in 20113
- Almost 2 million adults aged between 25 - 64 have had a disability4
There are a number of different ways that you can reduce the impact that these risks may have on your business.
What insurance cover options are available?
The below table describes some of the different types of insurance policies available within BT Protection Plans.
|Type of cover||How it can help|
|Lump sum benefits|
|Term Life||Pays a lump sum in the event of the death of an insured person or if the insured person is diagnosed with a terminal illness.|
|Total and Permanent Disablement (TPD)||Pays a lump sum in the event that the insured person is, depending on the TPD definition selected, unlikely to work again, perform household duties again, or suffers a loss of ability due to a permanent disability.|
|Living Insurance||Pays a lump sum in the event the insured person suffers from a specified medical event such as cancer, a heart attack or stroke. This type of insurance is sometimes referred to as trauma or critical illness insurance.|
|Income Protection||Pays a monthly benefit to replace a portion of the insured person's monthly earnings if they're unable to work due to sickness or injury.|
|Business Overheads Assured||Pays a monthly benefit if the insured person is unable to work due to sickness or injury, to help keep their business running.|
|Needlestick Benefit||Pays a lump sum if the insured person contracts HIV, hepatitis B or hepatitis C while performing the duties of a medical professional.|
|Children's Benefit||Pays a lump sum if the insured child suffers from a specified children's medical event.|
Please note: Needlestick Benefit and Children's Benefit Policies may only be available if you hold another Protection Plans Policy. Living Insurance, Needlestick Benefit and Children's Benefit are not available within superannuation.
Cover under BT Protection Plans is subject to limits and exclusions. You should refer to the BT Protection Plans Disclosure Statement (‘PDS’) for the full terms and conditions which apply to each policy.
Westpac and BT – we’re here to help
As part of our Group and one of Australia’s leading wealth experts, BT has been helping Australians build and protect their wealth since 1969.
Through BT, you can access a range of solutions across super, investments and insurance, to help you plan for today and tomorrow.
Things you should know
1. The LIFEWISE/NATSEM Underinsurance Report, February 2010.
2. Heart Foundation, statistics
3. Cancer Council Facts and Figures
4. AIHW 2011. Australia’s welfare 2011. Australia’s welfare no. 10. Cat. no. AUS 142. Canberra: AIHW.
A target market determination has been made for Protection Plans products. Please visit westpac.com.au/tmd for any of our target market determinations.
The Insurer and Issuer is Westpac Life Insurance Services Limited ABN 31 003 149 157 AFSL 233728, except for Term Life as Superannuation, Income Protection as Superannuation and Income Protection Assured as Superannuation, issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 as Trustee of Retirement Wrap ABN 39 827 542 991. They are subsidiaries of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714, who does not guarantee the insurance.