Five ‘must have’ Insurances

With the new financial year steadily approaching, now may be the perfect time to evaluate your current insurance policies and ask yourself – are you properly insured?

With the new financial year steadily approaching, now may be the perfect time to evaluate your current insurance policies and ask yourself – are you properly insured?

Regardless of how much coverage you think you may need, it is important to be properly insured in the event that unforeseen circumstances arise and you or your loved ones are left facing huge levels of debt.

So what are some of the key insurances that Australians should have?


1. Life Insurance

Life insurance works in the same way as car insurance. Basically, you pay a monthly premium to your insurer and if something goes wrong, your life insurance provider helps you cover the financial side. For those of you with a mortgage or other debt, life insurance is critical, as it will ensure you don't leave your loved ones with significant debt in the event that something happens to you.

2. Injury Insurance/ Income Protection

Income insurance policies allow for your family's finances to remain protected should you no longer receive an income as a result of job loss or injury. Standard income protection policies usually cover up to 75% of your gross wages for up to 2 years. Income protection is a must have for any families living off of one income or families with significant levels of debt.

3. Health Insurance

Health insurance is a vital policy for every Australian to have, regardless of how healthy they think they are. Even for the healthiest individuals, health insurance offers a range of policies that will ensure you not faced with an excessive bills should you become sick or are injured. Depending on your level of comfort (and your budget), there are a variety of health insurance policies available, ranging from top private hospital cover to public hospital cover.  Both types of cover will ensure your medical expenses are covered in the case of unexpected emergencies.

4. Homeowners Insurance

Homeowners insurance allows for your home and/ or any contents within your home to be covered if they become damaged or stolen. The price of your policy is often dependent on your home, so it important to shop around to ensure you are receiving the best rate based on the level of protection you need. Homeowners insurance is imperative for anyone who may live in a region where it is likely their house may become damaged due to inclement weather, or possess any property within their home that may be of significant value.

5. Vehicle Insurance

Vehicle insurance is a must have for anyone who owns a car. This ensures any damages relating to your vehicle are covered in the case of an accident.  By law, you are required to have third party insurance before registering your vehicle. However, there are a range of car insurance policies available that offer additional coverage. Car insurance policies for vehicle owners range from comprehensive car insurance to third party property insurance.  Your insurance needs will determine the type of car insurance policy you take out.

When insuring yourself, your car or your property, it is important to shop around. There are hundreds of insurance policies available on the market, so make sure you pick the one that is right for you, your needs and your budget.

If you find the level of choice overwhelming, it might pay to speak with a financial adviser. They can provide you with advice on a range of insurances and help you find the right deal for your needs.

Contact your local Mortgage Choice financial adviser today or call us on 13 77 62.