Personal Insurance in Australia
Personal insurance plays a key role in providing Australians with financial security. Knowing that you are insured should you not be able to work due to an unforeseen event gives you peace of mind. Industry-specific cover:
You must ensure you are properly covered for your specific circumstances because insurance providers are all very different. Each may have an extremely varied tolerance for different industries and professions, and this can impact on the depth of cover – and most importantly – premiums. Therefore, it is vital your adviser has a broad knowledge of the insurance industry in Australia.
Do I need personal insurance services?
Many people hesitate to protect themselves with adequate personal insurance due to the perception that premium costs can be prohibitive in some cases. But the consequences of not having personal insurance services can be a disaster. Everyone with a family and a desire to provide for them in the event that something unexpected happens should have personal insurance.
- Where cash-flow is a concern your superannuation can cover some if not all of your insurance needs
- Premiums can be affected by health and age considerations – so be sure to check your level of cover and premium
- Different insurance providers have different attitudes, so it is vital to work with an experienced financial planner who understands which providers to work with on your behalf
Which personal insurance product do I need?
There are 4 categories of personal insurance cover to consider for protection:
Life insurance provides financial protection if you are diagnosed with a terminal illness or pass away. A lump sum can either be paid to your estate or nominated dependents. We can provide personal insurance advice on life insurance to ensure you get the product that is right for you.
Total and Permanent Disability (TPD)
Should you become permanently unable to return to work due to injury or illness, TPD insurance provides you with a lump sum payout designed to clear debts, provide replacement income and cover any ongoing medical costs or lifestyle adjustment costs. It is often used in conjunction with income protection insurance to ensure your pre-injury/illness income is not impacted.
Should you be unable to work due to injury or sickness, income protection provides a replacement to your working income up to 75% for the duration of the period you are unable to work, ensuring continued cash-flow to support your lifestyle expenses and allowing a worry-free recovery. This is vital if you are dependent on your working income to support yourself, your family and your assets and liabilities.
This type of insurance is designed to give you financial security should you suffer from a traumatic medical condition such as cancer, heart attack, heart disease or paralysis. When your diagnosis is confirmed, you will be paid a lump sum to help with medical costs and debts. This will relieve financial pressure through providing for what can be significant expenses in the recovery process.