What's the point of personal insurance?
No one wants bad things to happen to them.
But sometimes they do. And it’s often completely out of the blue. A serious illness or accident is hard enough to deal with on its own. But it can also put a big dent in your savings and lifestyle. Not only that but it can heavily impact the ability of your family to live comfortably.
While living healthy and not taking unnecessary risks might be able to diminish the chances of getting sick or injured, it doesn’t get rid of the risks all together.
This is where personal insurance comes in.
Personal insurances are policies that pay out in the event of something bad happening to you. There are different types of insurances and they pay out under different sets of conditions. Over the past few years we have helped several clients to claim on their insurance policies. Which in turn helped them find comfort in the knowledge that their health concerns are not compounded by financial stress.
The main types of personal insurances.
- Income protection pays out a portion of your salary on a regular basis. It kicks in if you are unable to work for an extended period of time due to illness or injury. The terms vary depending on your policy but the premiums are generally tax deductible.
- Life insurance is the most well known of the personal insurances. It will pay out if you die or are diagnosed with a terminal condition. This insurance is often held within your super fund.
- TPD or total and permanent disability insurance is often linked to life insurance and can also be held in your super fund. TPD will pay out if you become totally and permanently disabled.
- Trauma insurance pays out in the event of suffering a trauma event such as cancer or a heart attack. The definition of what is covered varies from policy to policy and must meet certain criteria to qualify for a payout.
In our next article we will discuss figuring out which ones are right for you and what level of cover you need.
To make a time to discuss your personal insurances please contact us.