What you need to know about insurance
It is top of mind for most Australians that life does not always go the way we plan. However, having a plan in place if things do take an unexpected turn can mean that our health, lifestyle and family are better protected with insurance.
If you don’t currently have personal insurance cover, or you have not reviewed it with a Financial Adviser for a while, now is a good time to do so. Here’s what you should consider:
Types of insurance
There are a few different types that you should consider, based on what matters to you, if you’re self employed and what you would most like protected if you were to suffer illness, injury, disablement or premature death.
It’s best to discuss options with your Financial Adviser as they can tell you what different types of policies are available, what they cover, and how to structure them in your overall financial plan, based on your individual situation and goals.
The types of policies you may discuss include:
- Life insurance
- Total and Permanent Disablement insurance
- Income Protection insurance
- Business insurance
The benefits of an insurance policy
Family first
You and your loved ones count on your household income to enjoy a certain standard of living, which is why insurance is particularly important if you have dependents.
It means the people who matter most in your life are protected from financial hardship if you could no longer earn an income.
Less stress
Unforeseen illness, injury, permanent disability, and death – it is not nice to think about but it does happen. If it happened to your family it would probably be an extremely challenging time, with emotional stress, and even grief. With personal insurance in place, the financial stress can be reduced, allowing you to focus on getting well, and rebuilding your life.
Financial security
Illness, injury and disablement can incur a lot of personal and business expenses. Ask yourself, if you needed funds to recover from illness or injury:
- Would you have enough disposable income to cover medical bills whilst still paying your household expenses?
- Could you modify your home or office if need be?
- Would you want access to the best medical cover, treatments and rehabilitation options?
Insurance provides financial security so life can continue with as much normalcy as possible, while you’re seeking the best care available. At a time when everything else seems out of control, it is good to know your financial security isn’t!
Why seeing a Financial Adviser is important when thinking about insurance
The ASIC found that the “claim declined” rate was approximately 50% higher where the claimant went direct to the insurer than if they went through a Financial Adviser. In other words, you have a much greater chance of success with an adviser (1).
A Financial Adviser looks at your specific circumstances, your lifestyle, goals and appetite to risk. Together you can discuss policies, tapping into their expert knowledge and understanding of the requirements of providers. You can also discuss options for holding insurance inside and outside of superannuation. Should you need to make a claim on a policy, your Financial Adviser can liaise with insurance companies and superannuation entities on your behalf.
TurnKey Financial Consultants are here to assist you with a new policy or evaluating an existing one.
Complimentary consultation
If you would like to find out more about insurance, we’re here to help! Your first consultation is a complimentary discussion about your goals, experiences and financial future.
1. ASIC: Life insurance claims: An industry review