The majority of Australians have their homes, home contents, cars, and other valuable assets insured however fail to insure their most valuable asset – their life and their ability to earn an income.
Most people think they are at a low risk of needing personal risk insurance, however many Australian families are affected each year by a serious illness or injury, leading to a significant loss of income along with unexpected debts such as medical bills and costs.
If the unexpected occurs, personal risk insurance is extremely beneficial in helping meet your/your family’s basic living expenses along with covering medical expenses.
There are four main type of Personal Risk Insurance:
- Life Insurance: a lump sum payable on death or terminal illness.
- Total and Permanent Disability (TPD) Insurance: a lump sum payable to assist in supporting you if you are totally or permanently disabled due to illness or injury.
- Income Protection: a monthly benefit paid to help support you if you are temporarily unable to work due to illness or injury.
- Trauma: a lump sum payable to assist in supporting you if you are diagnosed with a major medical condition (e.g. heart attack, stroke, cancer, etc).
The level of cover required will vary depending on your life stage, however you can get a rough idea of how much cover you need by looking at your existing level of savings and debts, along with asking yourself what financial costs will can and will arise in the future.
Whether you are taking out risk insurance yourself or with your spouse, ownership of the insurance policy is an important consideration as there are different policy ownership options available.
Our professional Advisers are available to assist you in establishing and structuring personal risk insurance which specifically meets your financial needs.