Be prepared for life’s unexpected emergencies.
Imagine what your family's life would be like if you or your partner died or became seriously ill and couldn't work. Would you be able to survive financially? Can you pay the mortgage and bring up your kids?
Insurance can provide the money that you or your family need in critical times. It may not take away the pain of losing a job or a loved one, but it will ease the added pain of financial problems.
Types of personal risk insurances.
There are different types of cover that fall under the broad heading of personal risk insurance. Depending on your circumstances you may need one or more of these:
- Life cover- also known as term life insurance or death cover, pays a set amount of money when the insured person dies. The money will go to the people you nominate as beneficiaries on your policy. Life cover is also available through your super.
- Total and permanent disability (TPD) cover - covers the costs of rehabilitation, debt repayments and the future cost of living if you are totally and permanently disabled. TPD cover is often bundled together with life cover and is also available through your super.
- Trauma cover - provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on a person's life, such as cancer or a stroke. It is also referred to as 'critical illness' cover or 'recovery' insurance.
- Income protection - replaces the income lost through your inability to work due to injury or sickness. Income protection insurance is also available through your super.
For all types of personal risk insurance you need to disclose any pre-existing medical conditions if you are asked. Failing to 'tell it like it is' can leave you with a worthless policy.
Why insure through super?
There are benefits in getting insurance through super;
- It’s often cheaper because super funds purchase insurance policies in bulk
- There may be a tax advantage because the premiums are paid from your super account, not your after-tax income
- You can get the cover YOU & YOUR family need, even if money is tight
- It is easy to manage because the premiums are automatically deducted from your super account