November 2013 Newsletter 

In this edition:

Welcome

SMSFs and Property Investments

The true cost of ongoing disablement

Government Taxation and Superannuation update

Long term disability is an unfortunate worst case scenario that needs to be planned for. Most of us do not understand the reality of the costs involved; to properly care for a disabled person and how these costs can repeat, year-on-year. It's important to understand the massive financial impact a disability can incur.

Disablement will commonly start at a minimal level and then deteriorate as time goes on. Degenerative conditions, as well as acute injuries and their consequences, follow this pattern. Therefore plans should be put in place to provide long-term financial stability, for long-term disablement.

If a member of your own family became disabled and needed full time care, would you be in a position to be able to stop working to provide this care? Do you have family that can take on the role of a full time carer? Or would you need to pay an agency that can provide the services that are needed?
To follow is a case study showing what the actual costs are for a well known agency to provide the services that could be required in the event of a disablement.

Case Study

Jane – age 40 years and diagnosed with Multiple Sclerosis, 2 young school aged children, husband working full time.

Based on the following assumptions:

• Jane needs external assistance 4 hours a day, 3 days a week while husband is at work – rest of time she is cared for by family and friends.
• Another person is needed to do the heavy cleaning of the bathrooms, kitchen and floors
• After-school carer to help with homework, after school activities, meal preparation.

Assessment of needs:

• A live-out visiting housekeeper / attendant carer – 4 hours, 3 days a week, 52 weeks per year.
• A domestic / housekeeping person – 1 day per week for cleaning, laundry and ironing, 52 weeks per year.
• After-school carer – 4 hours, 3 days a week, 40 weeks per year 
  

If the disablement were to occur to Mum, how much can Dad cope with adding to his role of income provider?

• Kids birthday parties
• Shopping at beginning of each school term
• Administering to the kids when they are sick
• Grocery shopping and bill payments
• Helping with school projects and homework
• Taking the kids to after school and weekend sport and / or dance classes
• Washing up, cleaning, garden maintenance etc
• Washing, drying and ironing and if needed sewing clothes
• Organising sleepovers for the kids
• Attending appointments at doctors for immunizations, dentists and optometrists

A little planning now while you are healthy can mean the difference between Best Care versus Comprised Care for you and your loved ones.

Total and Permanent Disability (TPD) cover provides a lump sum benefit in the event that you become permanently disabled. This amount may be used to repay debts and provide ongoing income to be used to pay for the care that is needed. 

For more information on TPD insurance cover and how this could provide some financial protection for you and your family, please call our office to speak to one of our qualified insurance advisers.