There’s no time like the present to take a fresh, overall look at your personal insurance coverage, but it can get a bit confusing and technical. Different products come with different levels of coverage, varying benefits, and particular conditions. That’s why we’ve put together a quick overview of the most common policies you might need.
Everyone’s insurance needs are personal, so it’s important that once you’ve reviewed this list of insurance types, you discuss the results with us. You may find that in some areas you’re effectively self-insuring (taking on all the risk by yourself), so we may be able to help you implement a smarter risk management plan that’s cost effective and suitable for your circumstances.
Income protection insurance
Income protection insurance can pay you up to 75% of your monthly income (up to a $10,000 cap), if you’re unable to work due to an accident or a serious illness. You can extend and customise your coverage to fit your lifestyle; for example, Sports Cover means you’ll get a regular income if you can’t work because of an injury on the field or on the court.
When considering income protection insurance, you’ll need to consider what kind of cover you need based on your personal circumstances. The level of risk in your job and the kinds of things you like to do in your spare time might make a difference.
You can think of recovery insurance as your safety net in case the unexpected happens. It’s designed to give you peace of mind that, should you ever have a critical illness or injury, you’ll be able to cover all your living expenses. But recovery insurance goes one step further – it gives you the freedom to access the best treatment possible, take a good relaxing holiday, or just step back and take stock of what you want from life. It’s paid out as a lump sum of up to $500,000, giving you the flexibility to spend it wherever your priorities lie.
With recovery insurance (as well as other insurance products), you may want to compare stepped premiums (starting lower but increasing with age) with level premiums (starting higher but staying the same until age 65).
Total permanent disability insurance
Nobody likes to think about what they’d do if they were injured so severely that they were permanently disabled. But the reality is that in Australia, over 3.7 million people have a limitation or restriction that seriously affects their ability to look after themselves, get around, communicate, and worki.
Total permanent disability insurance, or TPD, helps give you peace of mind that you’ll be able to make the most of life if you ever become disabled. You’ll also be able to look after your family and your financial obligations. TPD pays a lump sum of up to $1.5 million, allowing you to do anything from making modifications to your home or vehicle, to investing in an income stream.
Life insurance is all about thinking of how your nearest and dearest will cope financially after you’re gone. With life insurance cover, your beneficiaries can get up to a $1.5 million lump sum to pay for a variety of important expenses in the years to come, from maintaining the family home to paying tuition fees.
When considering life insurance cover, unpleasant as it is, it’s important to think about the circumstances in which your death will be covered. You don’t need to get too specific, but it’s an important step. For example, if you love trying the latest extreme sports challenges, you might want to add on Adventure Sports Cover to your policy. In the end, it’s all about mitigating your risk and giving you peace of mind should anything unfortunate happen.
Feel like your coverage could do with updating? Contact us now to discuss your current and future coverage needs.