Insurance and Estate Planning



Our lifestyle is a very important factor in our everyday existence and at times it is an aspect that some of us take for granted until an incident occurs that compromises how we live.

This may be a result of an unforeseeable accident that reduces our financial earning capacity or worse still claims the life of a loved one. While it can be painful to consider the unsavory possibilities it is also smart thinking protecting your future and that of those that you care about most.

Life and income protection insurance ensures that you and your family’s quality of life remains the same no matter what the circumstances.

Estate Planning

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For most people, looking after the family is a priority, particularly in the event of their death. It is very unlikely that a person or couple with significant assets, who has reached retirement or for some much earlier, has not adequately planned for the passing of their estate upon their and their spouse’s death. Certainly those families with good advisers – both legal and financial, generally have their estate planning wishes solidified in a strong plan early in the wealth accumulation phase of their lives.

One of the aims of estate planning is to deliver on the promise of looking after a client’s family, while minimising any future legal disputation. Legal disputes are common for many families, particularly in contesting wills or, where there is not a will, disputing over who gets what.

Estate planning is the process of planning and documenting wishes for the distribution of all assets owned and controlled at death. The preparation of a will and in recent times a SMSF Will is an essential part of the estate planning process.

Some questions for you should consider:

  • Where are your current assets held? i.e. Trust, superannuation, company joint names etc.
  • What will happen to these assets upon your death?
  • What are the tax ramifications?
  • Do you wish to pass on lump sums or income streams?
  • What would happen to your funds if your spouse remarries?
  • Is there a chance that your will be contested.
  • What would happen if you lost capacity?

It is essential that you receive professional financial and legal advice and we invite you to contact us today.

Business Insurance

Do you wish to be in bed with your Partner’s spouse?


This somewhat titillating headline was used many years ago by John Augustine, a senior insurance agent in our firm in the late 1990’s.  The headline was used as a call to arms for his many business clients. Of the approximately 2,500,000 small businesses in Australia, only a fraction had given consideration to what would happen if their business partner passed away or lost the capacity to work again. John always had a turn of phrase, although somewhat outdated now, the headline emphasises the fact that without planning your new business partner will be your former partner’s spouse. 

To purchase the spouse’s newly obtained shares in your business you:

1:- Both need to agree to a purchase price and;

2: Have the access to capital to fund the purchase.

Our experience is that both these points can be problematic and certainly are the last things both parties wish to be dealing with at a time of loss!

John’s headline always stuck with me, and we have always had frank and open discussions regarding succession planning with our business clients. This was brought home to roost in November last year when a long-term client (Fred) and partner in a successful small business died tragically of a heart attack. We met with Fred and his 2 partners in 2008 after the business had been operating for 3 years. Revenues had grown strongly through this time and our principal had asked me to sit down and discuss succession planning with the partners. We discussed key man and buy/sell agreements and the partners agreed that would proceed with a buy/ sell agreement for Death and TPD.  

What is a Buy Sell Agreement ?

A buy/sell agreement allows business owners to plan how their interests in a business will be transferred to the remaining owners in the event they die or are unable to work. A buy/sell agreement often includes two parts – a legally binding agreement and a funding mechanism.

In this case the business was valued, and insurance was put in place whereby the shares in the business would be transferred to the remaining shareholders and the departing partner’s estate would receive the Life Insurance proceeds. This particular example resulted in a very large payout to Fred’s widow and avoided angst, worry and concern for his family at a time where all parties were in mourning and shock.  The partners were also saved the dilemma of having to find the capital to purchase Fred’s shares or “being in bed” with Fred’s widow as a partner.

Personally, this was very gratifying in that our assistance many years ago could be of some small condolence at such a difficult time. I reflect that it was Fred, (always the numbers man) who allayed his partners concerns on costs by comparing the premium cost in percentage terms against the business revenue. Fred instantly grasped the problems the business and the spouses would face without proper planning. As in all things- planning is essential…..

Life Insurance

1. The Importance of Life Insurance

  • Obtaining a comprehensive life insurance policy will ensure that your family and loved ones will be taken care of in the event of your untimely passing.
  • Your life insurance policy will also ensure that your loved ones can maintain the lifestyle which you have worked so hard to create even once you are no more.

2. Why do I need Life Insurance?

  • While we all like to think we will live forever, sadly this is not the case. Being prepared for the inevitable will help save our loved ones a lot of grief and ease the burden of their loss.
  • There is nothing morbid about life insurance. In fact, obtaining a suitable life insurance policy will help make a difficult time much easier for your loved ones.
  • A good comprehensive life insurance policy is likely to offer assistance with funeral costs, final estate settlement costs and even medical bills.

3. What are the Benefits of Life Insurance?

  • Most life insurance policies tend to cover a range of benefits to family members or loved ones following the demise of the principal holder of the life insurance policy.
  • These benefits include assistance with unpaid medical bills, income replacement for loved ones left behind, assistance with final expenses such as funeral costs, assistance with emergency expenses, providing future funds for your children’s education, and a source of retirement income for your spouse.
  • Some life insurance policies also assist with outstanding mortgages on your properties. Therefore, it is essential to obtain a life insurance policy which will fulfill your needs once you pass on.

4. What Type of Life Insurance is best?

  • Deciding on the life insurance policy which is best for you will depend on how you want your life insurance money to work for you and your loved ones.
  • At Hudson gore we can ensure that you make an informed choice about the type and amount of life insurance which is right for you and your family.


Income Protection Insurance

1. What is Income Protection insurance?

Income Protection insurance provides an income stream should you become unable to work due to an injury or sickness. Benefits are paid monthly, not as a lump sum. The amount of cover is restricted normally to 75% of your gross salary. Premiums are tax deductible, (see below).

2. What are the Cover choices?

There are a number of choices to be made on the type of cover. The claim benefit period (period over which benefit is paid), can vary from 2 years to age 65. You must also nominate a waiting period/excess before a claim will be paid, commonly 14, 30 or 90 days. Claiming benefits can be escalated in line with inflation.

3. Why do I need income protection insurance?

The choice of cover depends entirely on an individual’s circumstances. However some would argue that income protection is probably the most important type of insurance – after all, where would you be without your income? How well could you survive without your income for a period of 12 months or longer? Your income is used to maintain a certain living standard and also to build wealth and provide for your retirement. Unlike Trauma Insurance, Income Protection does not specify a list of accepted conditions. Therefore greater coverage is provided, particularly for temporary illnesses such as back injury and stress related illnesses.

4. How much cover can I purchase?

The maximum amount of cover you can purchase is usually limited to;
If you are employed: 75% of your current gross income (including employer superannuation contributions and packaged fringe benefits)
If you are self employed: 75% of the income generated by the business due to your personal exertion less your share of expenses.
A lower percentage of income may apply above certain income limits e.g. $250,000 and overall maximum levels of monthly benefit sum insured will apply. The insurer may request financial evidence of your income including tax returns over the last 12 months

5. Premiums are tax deductible

Unlike other forms of personal risk insurance, Income Protection premiums are tax deductible for most taxpayers. The after tax cost of the cover can therefore be significantly less than the cost of the premium.

Trauma Insurance

1. A helping hand when you need it most

No one likes to imagine a tragic event happening to themselves or their loved ones. But trauma is an unfortunate reality for many Australians.

  • Conditions such as cancer or stroke, and tragic events like major head injury and the loss of limbs, can befall any of us and alter our lives forever.
  • The expenses associated with such trauma can cause additional problems that compound the situation. While there is not a great deal that can be done to prevent the initial emotional and physical shock, a Trauma Recovery Insurance Plan can ensure you and your family are financially secure.

2. Underinsured and under-prepared

As a nation, it has been well documented that Australians are not well covered. In fact, only 22% of us have life insurance.

  • When it comes to trauma insurance, the statistics are worse, with only 2% of Australians actually owning cover.
  • So, why is it that Australians seem unprepared for the possible financial burden of trauma

The answer is multi-faceted: some people miscalculate their insurance coverage and others tend to view it as a luxury.

3. The right protection for you

Trauma Recovery insurance provides a lump sum in the event you suffer from a defined traumatic event, such as cancer, heart attack or major head injury.


  • It is designed specifically to help cover the expenses associated with such events. It can assist in paying for expensive recovery and rehabilitation costs, pay to refit your home with wheelchair access, enable your partner or family member to reduce their work hours to care for you or can be used to provide an ongoing income stream for you in the future.
  • Thanks to modern medicine there is no doubt that people are living much longer, even upon diagnosis of a ‘life threatening illness’ or after having been involved in a traumatic accident.
  • More than 80% of heart attack sufferers will survive and 50% of people diagnosed with cancer are expected to live longer than 5 years.
  • But, while patients and victims are clearly benefiting from the advancements in medical technology, it is often their financial situation that suffers irreparably.


Pays a lump sum in the event of a diagnosis insurable condition, e.g. cancer, stroke, heart attack, major head injuries. Trauma insurance (also known as critical illness insurance) provides a cash lump sum in the event of contracting a specified disease or trauma. The number of conditions covered (benefits) varies widely, cheaper policies often offering less benefits.

It is likely that one of the following illnesses will affect you or your family. Typically trauma policies will pay benefits in the case of some or all of the following critical illnesses:

  • Alzheimer’s Disease
  • Aplastic anaemia
  • Blindness
  • Burns – severe/major
  • Cancer
  • Cardiomyopathy
  • Coma
  • Coronary artery angio
  • Coronary bypass surgery
  • Deafness
  • Dementia
  • Diplegia
  • Encephalitis
  • Heart attack
  • Heart valve surgery
  • Hemiplegia
  • HIV -occupational acquired
  • Kidney failure – chronic
  • Liver disease – chronic
  • Loss of independent existence
  • Loss of limbs and/or eye
  • Loss of speech
  • Lung disease – chronic
  • Major head trauma
  • Major organ transplant
  • Motor neurone disease
  • Multiple Sclerosis
  • Paraplegia
  • Parkinson’s Disease
  • Pulmonary hypertension
  • Quadriplegia
  • Stroke
  • Terminal illness
  • Life Cover – death benefit
  • Total & Permanent Disability
  • Aortic surgery
  • Out of hospital cardiac arrest
  • Benign brain tumor
  • HIV – accidental infection
  • Peripheral neuropathy
You need trauma cover to


  • To repay debt
  • Single people wishing to maintain financial independence.
  • A homemaker who would usually perform the duties of a housekeeper or nanny.
  • Those who may require cash support for their business while they take on the role of carer.
  • Those who would like to be able to choose private medical care rather than remain on a waiting list.
We aim to empower the individual to achieve their life goals through innovative financial solutions

Suite 402, Level 4, 88 Foveaux St, Surry Hills NSW 2010
PO BOX 1899 Bondi Junction NSW 2022
Ph: (02) 9211 0111


307 Peel Street, Tamworth 2340
PO Box 319, Tamworth. 2340
Ph: (02) 5712 3939 M: 0428 665 161

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