March 18, 2015
Give yourself - and your family - peace of mind with these essential forms of protection.
At Mortgage Choice, we can work together to help you choose the insurances that will protect your lifestyle - now and in the future.
Let's look at the five types of cover that we believe are at the heart of a sensible financial plan.
This one is non-negotiable, especially if you have a home loan. Most home owners have basic building insurance in place but many people don't have sufficient cover. Your home is likely to be your most valuable assest - don't risk it with underinsurance.
Income Protection Insurance
The income from your regular wage and salary income is likely to be the most significant factor in your ability to build wealth, grow financial security and enjoy a rewarding lifestyle. Income Protection insurance offers vital protection by providing regular payments, usually around 75% of your normal wage or salary, if you can't work because of illness or injury. The premiums can normally be claimed as a tax deduction, which helps make the actual payments more manageable.
Critical Illness (Trauma)
Trauma cover pays an agreed lump sum if you suffer one of the serious illnesses or injuries noted in your policy, like heart attack or cancer. It's money that lets you focus on recovery rather than your finances.
Total and Permanent Disability (TPD)
Let's face it - a disability pension is likely to be a lot less than your regular income. TPD cover can help you meet expenses like rehabilitation, home modifications and even carer fees to help you rebuild your life.
Here's the big litmus test for life cover. If you - or your other half - passed away unexpectedly, how would your family manage financially? Many Australians have some level of life cover through their superannuation fund but it's vital to check if that is enough. Having adequate life insurance cover in place means you don't have to worry about the risk of your family experiencing financial distress, at a time when there are more important things to consider.
You work hard for your current lifestyle. Don't leave your future to chance.