We insure our cars, our homes, even our phones. But what about our most valuable asset – ourselves? Many Australians overlook the importance of personal insurance, leaving themselves and their loved ones vulnerable to financial hardship in times of unexpected crisis.

What is personal insurance?

Personal insurance is a safety net that protects you and your family from the financial impact of unexpected events like illness, injury, or death. It comes in various forms, each designed to address specific needs:

• Life insurance: Provides a lump sum payment to your beneficiaries if you die. This can help cover expenses like mortgage repayments, debts, funeral costs, and ongoing living expenses for your family.
• Total and Permanent Disability (TPD) insurance: Pays a lump sum if you become totally and permanently disabled and are unable to work again. This can help with medical expenses, home modifications, and ongoing care needs.
• Trauma insurance: Also known as critical illness insurance, it provides a lump sum payment if you’re diagnosed with a specified serious illness, such as cancer, heart attack, or stroke. This can help cover medical costs, rehabilitation, and lost income.
• Income protection insurance: Replaces a portion of your income if you’re unable to work due to illness or injury. This can help you maintain your lifestyle and meet your financial obligations while you recover.
  
  

Why is it so important?

Life is unpredictable. Accidents, illnesses, and unforeseen events can happen to anyone, regardless of age or health. Personal insurance provides:

• Financial security: It protects your family’s financial future in the event of your death or disability.
• Peace of mind: Knowing you have a safety net can reduce stress and anxiety about the “what ifs”.
• Flexibility: It allows you to focus on your recovery or support your family without worrying about financial burdens.
• Choice: You can tailor your insurance coverage to suit your individual needs and budget.
  
  

Who needs personal insurance?

Anyone who has financial dependents or responsibilities, such as:

• Families with young children: Life insurance can ensure your family is financially secure if you’re no longer around to provide for them.
• Homeowners with a mortgage: Life and TPD insurance can help pay off your mortgage if you die or become disabled.
• Self-employed individuals: Income protection insurance is crucial for those who rely on their own income and don’t have sick leave entitlements.
• Anyone with significant debts: Insurance can help cover your debts and protect your assets in times of crisis.
  
  

Don’t wait until it’s too late

It’s easy to put off thinking about insurance, but the reality is, the unexpected can happen at any time. The younger and healthier you are, the more affordable your premiums will be.

How much cover do you need?

The amount of cover you need will depend on your individual circumstances, such as your income, debts, and family responsibilities. A financial advisor can help you assess your needs and recommend appropriate levels of cover.

Protecting your future

Personal insurance is an investment in your financial security and peace of mind. It’s about protecting your most valuable asset – yourself – and ensuring your loved ones are taken care of, no matter what life throws your way.

This blog post is intended for general information purposes only and does not constitute financial advice. It is essential to seek personalised advice from a qualified financial advisor to ensure the information is appropriate to your individual circumstances.