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In this edition

Tax Tips for 30 June
CTP Insurance - At Fault Protection Cover
State of Origin Competition
What happens to your super after you die?
Total & Permanent Disability Insurance - It’s a matter of definition
The “R” word
What are your Management Exposures in your business? Have you got the Management Liability Insurance that you need?

Article brought by Dr Jim Taggart OAM

Dr Jim Taggart OAM

Jim's career began as a Teacher and a Deputy Principal of a Catholic High School. Since entering the field of financial planning in 1987, he has successfully developed his business to service nearly 6,000 clients in which his organisations provides advice on Financial Planning, General Insurance, Finance & Leasing. The Taggart Group Pty Ltd runs the General Insurance business, and hold an AFS Licence as General Insurane Brokers. Taggart Nominees Pty Ltd is an AFS Licensee and runs the Financial Planning and Life Insurance Broker business.

Also during this time Jim has completed another Masters Degree in Commerce, majoring in Financial Planning to add to his other qualifications of Diploma of Teaching, Bachelor of Arts and a Master of Arts from Macquarie University. Jim had completed his Doctorate in Business Administration, and also holds the FChFP designation awarded by the Association of Financial Advisers.

In the field of writing Jim has written two books while he was teaching with his senior geography text winning a geography award. In recent times Jim has written many articles for industry publications as well as newsletter articles for various networking associations.

Jim became a CFP with the Financial Planning Association of Australia in 2002, a desingation he still holds. Jim is also QPIB qualified, being the highest in his profession for General Insurance in Australia. Jim is the recent past National President of the Association of Financial Advisers [AFA] ending his tenure in October 2010, and was the NSW/ACT Director from 2006 - 2008. 

Jim has lived in the hills area at Kellyville for over 28 years. Jim has been actively involved in community activities such as: -

  • Salvation Army
  • Vice President of Regional Chamber of Commerce 1999 - 2000
  • Past board member of Gilroy College and Marion College
  • Past Chairperson and current member of the Hills Excellence in Business Committee 355 Management Committee
  • Past Chairman of the Advisory Council for TAFE NSW Western Sydney Institute

Jim is married with four children, and conducts a very active and preferred insurance/finance and financial planning practice.

For many years Jim has performed community services in diverse areas and was Chairman for the Red Shield Appeal in Western Sydney(past 7 years). Jim was the Chairman for the Olympic Fundraising Committee for the Western Region.

Jim has been fortunate to speak at offshore conferences in the areas of Financial Planning and Motivation in such countries as Switzerland, New Zealand and U.S.A.

In November 2005 Jim was awarded the 2005 Zurich / Association of Financial Advisers [AFA] Adviser of the Year Award. In January 2006 Jim was presented with the 2006 Baulkham Hills Shire Australia Day Community Service Award.  In January 2010 Jim was awarded the Medal of the Order of Australia in the 2010 Australia Day Honours.

 

Contact details

Website
The Taggart Report
Phone
02 9894 9155
Fax
02 9894 8599
Email
Email us

Total & Permanent Disability Insurance - It’s a matter of definition

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Total and permanent disability (TPD) insurance

TPD insurance is commonly taken as an optional extra with term life cover, or it can also be obtained on a stand-alone basis. TPD cover provides a lump sum payment in the event of total and permanent disablement. To make a claim you generally need at least two medical practitioners to certify that you are unlikely to be able to ever work again.

“Own” vs “any” occupation

It is important that you select the cover that contains the most relevant definition of TPD for your circumstances. There are two main definitions that exist for Australian TPD insurance policies: “own” and “any” occupation.

“Own occupation” means that the TPD payment is made when you are unable to perform your own occupation.

“Any occupation” means that you can claim if you are unable to perform any occupation that you are reasonably suited to by way of education, training, or experience.

Selecting the right definition

Selecting the right definition for your needs is crucial. If you are a high income earner in a specialist occupation, especially one that has required many years of training, it’s important to consider a TPD policy with an “own occupation” definition.

Take the example of Wally, a neurosurgeon who spent over 15 years training to achieve his professional qualifications. He is a senior team member in a specialist medical consulting practice and earns an annual income in the high six figures.

If he were being assessed under a TPD claim and the insurer decided that he was unable to perform the usual duties of his role with an “own occupation” definition, he would receive his payout (assuming all other claims criteria was satisfied).

If Wally had an “any occupation” definition, securing a TPD payout may be much more difficult given his high degree of experience and training. This hurdle arises because even though Wally may be too ill to work as a specialist neurosurgeon, he may be deemed well enough to obtain alternative employment that uses his skill set, perhaps as a sales representative with a pharmaceutical company or even as a university tutor, on a much lower remuneration level than he is used to.

Seek professional advice

With so many different TPD products available in the marketplace, seeking advice from a financial planner is crucial to ensure you have the right cover for your needs, and that you aren’t paying the earth for it.

Please contact us if you’d like to know more about TPD insurance.

 

 

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