Here’s why having the right personal insurance is vital
No one ever wants to think about the bad things that can happen in life. We’d much prefer to stick our head in the sand and continue to live happily in our day to day lives.
That’s human nature – we protect ourselves from the ‘what ifs’.
And let’s be honest, the cost of living keeps going up, leaving us with little play money for the added extras in life.
But for a minute, let’s consider what would happen to your family would one of these ‘what ifs’ came up. Would they still be able to live the life they’ve become accustomed too? Will the bills get paid? Will there be food on the table? Will you still have fun family holidays?
Some stats about insurance claims you need to hear
You may be surprised to hear, that a report from AMP in 2016, revealed they paid over $1.058 billion in personal insurance claims. That’s 11,145 customers that without insurance, would have struggled to cope.
But they sought the peace of mind and took out personal insurance to protect their family.
They were covered for a variety of unexpected illnesses such as cancer, mental health disorders, accidents, nervous system diseases, heart attacks and strokes, and respiratory diseases.
On average, those making claims (an equal mix of male and females) were in the prime of their careers, with 25.4% being 40-49, and 40.9% were 50-59.
Think about your situation – what would you do if you couldn’t work?
Your options for personal insurance
Income protection cover:
If you are struck down with an illness or have an accident and need time off work to recover, income protection cover will take away that financial stress. Yes, we all have sick leave, but what would you do when this runs out? Income protection insurance covers you for up to 75% of our regular income, helping you to cover your daily living expenses and medical expenses, and can be a good tax strategy.
When you suffer from a serious injury or a medical condition, it can consume you and your thoughts. It’s hard to focus on anything else while you recover, and added financial strain is not what you need. Trauma cover gives you immediate payment that can go towards your medical expenses, recovery and other lifestyle expenses you need to pay.
Remember, when receiving a payment, this is tax free.
Total and permanent disability:
If you’re permanently unable to work due to a disability caused by an injury or illness, this type of personal insurance will give you and your family financial security. Usually, you’ll be given a lump sum payment to help you pay for ongoing medical expenses, alterations to your home (such as ramps, showers etc.), and repayments of major debts.
This is the type of cover none of us wants to think about, but it gives you peace of mind knowing your family will be looked after if you were to die or become terminally ill. Your family usually receive a lump sum payment they can use for things such as paying off a mortgage or debts, helping with funeral costs, and using it to maintain their lifestyle into the future.
What’s the real purpose of any personal insurance?
You need to weigh up the costs. Is this small amount you pay for personal insurance worth the result for your family? We say yes!
Here’s how personal insurance helps:
Keeps your family comfortable in your home by paying the mortgage
Allows your family to maintain their lifestyle by paying the day to day bills
You’ll focus on your recovery to get back to work, rather than adding financial stress to your situation
Covers the cost of your funeral, so your grieving family don’t have to scramble the funds together to give you the send-off you deserve
Want some help working out what personal insurance you need?
Your family’s financial security is in your hands. If you’re ready to talk about your insurance options, we’re here to answer all your questions.
Email us at: firstname.lastname@example.org
Or call us on 0411 534 791