If you’re not quite sure where to begin when it comes to personal insurance covers you’re not alone!
Personal insurance is really complicated and finding out which insurance covers are right for you can be a challenge.
This article will help you to get more familiar with all of the personal insurance covers we think that everyone should consider and will also show you how to get the right insurance advice so you can be confident that your personal insurance will do everything you need it to!
Income Protection Insurance
If something happened to you and you were unable to work, would you have enough money set aside to cover your day-to-day bills and look after your family?
And even if you think you’d be ‘okay’, how long would things be okay for?
Income protection insurance allows you to continue to receive a monthly income of up to 75 per cent of the income you were earning prior to becoming too sick or injured to work. Income protection policies are very flexible depending on your individual circumstances, and importantly, they give you the financial security you need to be able to concentrate on recovering without having to worry about your bills.
Life Insurance
Of all the personal insurance covers, life insurance is probably the one that most people don’t like to talk about, but the truth is that taking out a policy really isn’t ‘tempting fate’ as some people believe, and it’s an excellent way to ensure that your family will be provided for if something bad should happen. The scariest part of life insurance isn’t actually getting it — it’s your family finding out that they’re not covered, or are underinsured, if the worst does happen.
It’s also worth remembering that life insurance is not something you can ‘set and forget’. You need to recalculate your level of cover as your circumstances change, because the amount you need will alter throughout your life. It’s worth making a point of reassessing all of your insurance covers regularly to ensure that they continue to meet your needs.
Trauma Insurance
Isn’t it interesting how most Australians would never dream of living in a house without home insurance and would not drive their car without car insurance, yet protecting themselves and their families in the event of death, injury or illness takes second priority — if it’s considered at all.
So what is trauma insurance?
Trauma insurance is one of the most under-rated insurance products in most Australians’ insurance portfolios. It covers you from anywhere between five and 41 critical events (depending on the insurer). It is a ‘living’ insurance where benefits may be used to replace loss of income, remove debt, and pay for what can be prohibitively expensive medical care. It also provides funds for elective or alternative therapies, allows an individual the option of having extended time off work to facilitate recovery and provides the option for a loved one to forgo their income to assist with the care of a sick family member. And the best part is that the lump sum paid may be used in whichever way you please — there are no restrictions on how it must be spent.
TPD Insurance
TPD Insurance is a lump sum payment paid to yourself and is used to clear out debts, provide funds for medical costs and annual income streams to ensure you maintain the same quality of lifestyle.
It is generally paid when you have been advised by a medical specialist that you will never work again.