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Personal Insurance
It seems strange that most people will insure their car and house but few will insure their most valuable asset - themselves.
What would happen if your income stopped because you become ill or disabled or, worst of all, you die? How will you, or your family, be able to pay the mortgage, school fees. medical bills and other day-to-day living expenses?
Your ability to earn income in the future is one of your most important and largest financial assets.
The Statistics tell a sobering tale
Most Australians will insure their car, but when it comes to personal risk insurance the statistics tell a sobering tale.
- Just 55% of Australian's have life insurance.
- Only 32% of Australians have total and permanent disability insurance.
- Only 31% have income protection insurance.
- 23% of Australian's have trauma insurance.
What is personal risk insurance?
There are four types of personal risk insurance:
- Life insurance (or death cover) - Pays a lump sum to your beneficiaries in the event of your death - While money can never replace the loss of a loved one, it's comforting to know the people who depend on you will be financially assisted.
- Total and permanent disablement cover - Pays a lump sum if you're no longer able to work due to total and permanent disablement - This additional money could be used to repay loans, help meet day to day living expenses, fund medical expenses, meet rehabilitation costs and pay for any modifications required to your home.
- Trauma insurance- Pays a lump sum in the event you suffer, for the first time, certain specified medical conditions such as a serious heart attack, stroke, cancer, etc
- Income protection insurance- Insures you against loss of income while you are unable to work because of illness or injury. Income Protection insurance pays up to 75% of your salary package from your employment. - Income protection insurance can provide you with an income to meet day-to-day living expenses, loan payments, school fees and other expenses during times of illness or injury. It also assists in preserving your assets. Without it, assets and investments may have to be sold to help meet expenses during periods of illness or injury.
How much personal risk insurance is enough?
How much cover you need depends on your own situation. You need to take account of your income and expenses, assets and debts, your family situation and age.
We can discuss these things with you and make a recommendation about the level and the types of cover that are right for you and your family.
How we can help
Our insurance specialist can review your personal circumstances and advise you on the amount and type of personal risk insurance you need.
We will also review any personal risk insurance you may already have and advise you whether it still meets your needs. We can also help you save money by finding you a cheaper premium rate on your existing insurances.
Contact us for a free initial consultation with one of our expert advisers.
Open Financial Services Pty Ltd
1300 780 690
Australian Financial
Services Licencee
