December 2014 Newsletter 

In this edition:

Welcome

Christmas message and trading hours

A tradesperson's best back-up tool is insurance. Are you covered?

New complications from ATO rulings on relationship breakdowns

New rules for insurance held in SMSFs

A tradesperson's best back-up tool is insurance

Are you covered?

Statistics show that tradespeople are three times more likely to suffer work-related injuries (1) than any other occupation. Heart disease is also the number one cause of death in Australia, followed by stroke and cancer (2). With figures like these it's important, that as a tradesperson, you have cover that takes into consideration the work you do, the unique risks you face, plus other medical factors that affect all Australians. 

You need a plan that covers you, your income and your debts. 

Workers compensation may not be enough 

If something happens to you at work, workers compensation helps part of the way, but you could be waiting a long time and it only covers some of your expenses. What if something happens outside work or you suffer heart disease or cancer? When your income stops, you don't want to worry about your loan repayments, bills and everyday expenses. 

That's why you need life insurance
Life insurance goes to work where workers compensation leaves off. It includes life cover, income protection cover, total and permanent disability (TPD) cover, and trauma cover. It can also cover you if you have minor fractures and still keep working. 

Benefits of insurance 

• You will receive the rehabilitation you need to be able to return to work. 
• If you're self-employed and need to keep an eye on your business, or work for someone else and wish to return to work, some policies allow you to work 10 hours a week while still receiving benefits. 

• If you can't afford comprehensive cover, you can cover yourself for accidental injury only. Considering the majority of claims are due to accidents, it's a pretty sensible option. 
• Trauma cover not only provides benefits for things like coma, intensive care, loss of limb or sight, major head trauma, paralysis and severe burns. It also covers you for the early signs of a heart attack, melanoma or cancers. 
• Generally income protection and business expense insurance premiums are tax deductible. Plus you may be able to cover your premiums through your super. 

Peter's story
Peter, a high-achieving tradesman, suffered an injury that left him unable to work on the tools effectively. He was confident he could win enough work to expand his business using other tradespeople to do the hands-on work. 

Through his income protection's rehabilitation benefit, he had access to a business coaching program which focussed on helping Peter build a team of high-calibre tradesmen. Over seven months his coach helped him create and work a business plan until he was convinced the strategy was working. 

It's essential to get the advice you need
With so many different types of life insurance available, it's important to discuss your own insurance needs with a financial adviser. To find out more contact Debbie Adams at GCC Financial Planning on 02 9899 3044. Debbie will go through your circumstances and come up with a plan that's built for you. 

References

(1) "Key Work Health and Safety Statistics Australia, 2010" Safework Australia 



(2) "Causes of Death, Australia, 2010" Australian Bureau of Statistics Note: Any advice in this article is general advice and doesn't take into account

Note: Any advice in this article is general advice and doesn't take into account a person's objectives, financial situation or needs, except for the purposes of this case study.