Understanding insurance: protecting what is important to you. You can watch the video here or read the transcription below.
Should something ever happen to you, personal insurance is there to provide financial security for you and your family.
Here are some of the things you should think about when it comes to protecting what’s most important to you.
Choosing the right insurance for you
Choosing the right type and the right amount of insurance can help to make sure that if anything were to happen, you and your loved ones would be looked after financially.
It is important to remember, as your life changes so do your insurance needs. Holding a mortgage, having children and getting married are all factors that increase your financial responsibilities. So you’ll need to review your insurance cover as your situation changes.
There are four types of personal insurance you should be aware of:
- Trauma cover: After suffering a traumatic event, trauma cover can relieve your financial worries and let you focus on your recovery.
- Life insurance, also known as death cover, is especially important for those that have others relying on them, or have large debts like a mortgage. Life insurance provides a lump sum to your beneficiaries if you die.
- Total and permanent disablement or TPD: If you were to become disabled and unable to work again, TPD cover provides you with a lump sum payment to help you financially.
- Temporary salary continuance cover or income protection. Income protection insurance can give you peace of mind that if you were unable to work due to illness or injury, your family and the lifestyle you’ve built can be financially protected until you are ready to return to work.
So, how much insurance do you need?
There are many factors that can affect the level of cover that is right for you, depending on the financial obligations that you need to protect, both now and in the future. It also depends on what you can afford, so you may need to prioritise.
You may decide to change your level of cover based on changes to your lifestyle. For example, if you have children and a large mortgage you may decide you need more cover. A professional advisor can help you work out how much cover is right for you and will help you along the way to adjust your cover as your circumstances change.
Insurance available through super
Some insurance may be available through your super fund and this can reduce the premium you pay directly out of your pocket. While you may already have a basic level of insurance through your super fund, you need to make sure the type and amount of that insurance is suitable for your circumstances.
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.
Whatever insurance you choose, it is important to review your cover against your needs on a regular basis.
You may already have some insurance through your super fund – you will need to make sure the type and amount of that insurance is suitable for your circumstances.
To review your insurance needs, contact us to book a free initial consultation with a Blueprint Wealth financial advisor today.
This video contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning Pty Limited and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact Blueprint Wealth on (08) 9423 0300 if you would like more information.