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Personal Insurance – The reality of insurance and keeping your family covered

October 2018

Most of us have insurance for our car and our home, and health insurance to cover time in hospital and visits to the dentist or doctor. Many, however, don't insure themselves against the risk of losing their life, or their income, either temporarily or even worse, permanently. Could you absorb the costs associated with a serious health incident?

The reality

Not being able to work could be financially devastating.

And not everyone has money put aside to rely on. If you permanently lost your income due to accident, injury  or loss of life, how long could your family survive?

Luckily there are a range of personal insurance products available that can protect you and your family against the financial implications of unforeseen health events.

  • Life insurance
  • Total and Permanent Disability (TPD) insurance
  • Income protection
  • Critical illness insurance

 The risks

  • More than 60% of cancer patients will survive more than five years after diagnosis (i)
  • About 65% of those living with stroke also suffer a disability that impedes their ability to carry out daily living activities unassisted (ii)
  • On average there is one death in Australia every 3 minutes 36 seconds (iii)

What is life insurance?

Life insurance is all about giving the people you most care about financial security if you're no longer alive to support them. If you die, it pays a lump sum benefit to your loved ones.

Having the right level of cover helps to ensure that your family could survive financially without your income. The benefit payment can be used to meet a number of expenses.

Life insurance could help your family cover:

  • Mortgage payments
  • Your children's future
  • Retirement protection for your spouse
  • Funeral costs

(i) Cancer Council Australia (2011) Facts and Figures www.cancer.org.au/ aboutcancer/FactsFigures.htm
(ii) Stroke Foundation (2015) Facts and figures about stroke, http://strokefoundation. com.au/health-professionals/tools-and-resources/fac ts-and-figures-about­ stroke/
(iii) BS (2011) Populations Clock, www.abs.gov.au/aussats/abs

Topics: Inflation, Life cover, TPD insurance, Underinsurance, Cutcher & Neale Risk Insurance, Income protection, Tailored insurance, Premiums, Policy

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