Knowing what level of cover you require can be tricky, so it’s worth thinking about a few things first, such as—to what extent you and any loved ones rely on your income, how costs stemming from an injury, illness or death might be covered and how existing debts might be paid off.
It’s also a good idea to determine up front what you can afford, and if you have any existing cover (you might have a standalone policy or insurance through super), that it is adequate.
After all, research shows 60% of families with dependent children in Australia don’t have enough insurance to cover household expenses for a year if the family bread winner were to pass away*.
You can buy different forms of personal insurance through your super fund, which is where more than 70% of policies are held currently**, or via an insurance company, broker or adviser.
The four main types of cover, which aren’t all available through super, include life insurance, income protection, total and permanent disability (TPD) and trauma insurance.
Whether you’re looking at life, income protection, TPD or trauma insurance, there are a range of questions you could ask yourself to help determine the level of cover you might need, including:
It’s important to review your cover whenever your personal circumstances change to ensure you’re not underinsured and that you’re not over insured. Also, always read the product disclosure statement carefully so you know if a product is suitable to your needs.
For further guidance on how much cover you may require, speak to us today.
Source: AMP News & Insights.