Reassessing your personal insurance to meet your family’s changing needs is essential. To ensure your family has adequate cover, you need to consider:
- How would your family be affected financially if you were injured or died tomorrow?
- Exactly how much insurance cover you have. Is it enough to meet your family’s needs?
- Have you recently reviewed your level of insurance to take into account changes in your income and/or debt levels?
- Do your existing insurance policies have clear and unambiguous definitions of when insurance benefits are payable and when they are not?
Adequate personal insurance can help ensure that you are financially prepared for the unexpected.
Income Protection Insurance
Most people are not prepared for the financial consequences that can follow unexpected events. If a couple who both worked full time and had two children suddenly had to survive on one salary, this would have a significant impact on their ability to meet mortgage repayments and other daily expenses.
Income protection insurance is one way to safeguard your financial situation in case of an illness. It pays you a monthly amount until you return to work.
More affordable than you think
Today, income protection insurance is less expensive and has more extras and flexibility than in earlier years. Also:
- premiums are generally tax deductible
- most policies pay a benefit of up to 75% of your salary
- payments can continue until you reach age 65.
Could your finances survive if you suffered a serious illness?
If you were to become seriously ill, the last thing you’d want would be the added financial burden resulting from loss of income and medical bills.
Trauma insurance provides a lump sum payment should you incur a specified medical condition such as cancer. Your payout could help you maintain household costs, service your mortgage and meet ongoing medical costs.
Given that one in two Australians will be diagnosed with cancer before the age of 85, having a financial safety net such as trauma insurance in place can provide you with valuable peace of mind.