Protection you can’t afford to not have.

We’re all familiar with insurance. You probably have an insurance policy or more than likely, several insurance policies. There’s your phone, car, private health, home and contents just to name a few. We all work pretty hard to acquire the assets these insurances protect.

So who is going to pay the premiums for all of these insurances if you were unable to earn an income? Not to mention all the costs associated with these assets and living the great Australian dream. You are your biggest asset. In saying that, your ability to earn an income all depends on you.

Understanding the different types of personal insurance and the exact cover you have are key components to good financial management.

What is personal insurance?

There are four main types of personal insurance; Life, Total and Permanent Disablement [TPD], Income Protection and Trauma Cover.

Premiums are based on several factors, such as age, gender, occupation and pre-existing health issues.

Life Insurance

In the event of your death or if you should be diagnosed with a terminal illness and have less than 12 months to live, life insurance policy pays an agreed amount of money to your nominated beneficiaries.  This can be held inside or outside of super.

Total and Permanent Disablement [TPD]

TPD covers you in the event that you become totally and permanently disabled and deemed never able to return to work.  TPD policies are typically bundled with Life Insurance, but can be purchased as a stand alone product.  You can have TPD insurance inside or outside super.

Income Protection

Income Protection is designed to help with the cost of maintaining the household while you focus on your recovery.  Income Protection can provide you with up to 75% of your regular income until you are able to return to work.  The premium is based on your occupation, the timeframe you’re prepared to wait before the benefit is paid post the incident, and the duration of the benefit period.

Income Protection can be held either inside or outside super.  Policies held outside of super enable the policy owner to claim a tax deduction on the premium.

Trauma Cover

Trauma Cover pays an agreed lump sum should you become critically ill or injured.  Claims are often processed quickly without the worry of waiting periods.  The purpose of Trauma Cover is to help you make the necessary changes to your lifestyle in an effort to aid your recovery.  This could be anything from cutting back on time at work, to paying for treatment, or making adjustments to your home.

Premiums vary depending on the amount and type of trauma event cover you choose.  Trauma Cover cannot be held through super but can be bundled with other policies held outside, such as Life Insurance.

Why do I need personal insurance?

Workplace related injury or illness may qualify you for workers compensation.  Alternatively, you may be entitled to the disability pension through Centrelink, which may provide some assistance but the application process is lengthy and the monetary benefit will be minimal.

The leading causes for personal insurance claims include cancer, musculoskeletal disorders, heart disease, mental illness and accidents.  While the ‘what if’ is something no-one wants to think about, the reality is that it does happen.  Not planning for it could add financial stress and anxiety to an already unfortunate situation.

What financial impact would this have on your family if something does happen to you?  Can you afford to maintain your current lifestyle as well as the costs associated with your recovery?

When should I get personal insurance?

When giving consideration to personal insurance it’s important to think about a few things.  What would you do if you became sick or injured and were unable to earn an income?  Could you afford your lifestyle and to maintain the repayments on any debts you currently have?

How much cover would you need to reduce or payoff debts, your children’s education or any other major purchases and living expenses?

How do I get Personal Insurance?

We will conduct a risk needs analysis and tailor a personal insurance package specifically for your circumstances.  We will guide you through the entire process.

Already have personal insurance?

If your personal insurance policy has been in place for some time, there is every chance it may not reflect your current circumstances.  Changes in income level, assets/liabilities, marital situation, family members and so on are triggers that should prompt a review.