Taking Cover in Changing Times

Change is a constant. Life is about change and as we embrace each new milestone and deal with the challenges life throws us from time to time, we grow as human beings.

Just as life changes, so do your insurance needs. Personal insurance is never a ‘set and forget’ so let’s look at how to ensure you are appropriately covered through each stage of your life. Changes to your insurance needs at any given time are a constant throughout your life.

Insurance Through the Ages

What you need as a single 20-something building your career is different from your requirements in your 40s when you may be juggling a young family and a mortgage. Then as you approach retirement and beyond, perhaps with your mortgage paid off, your needs change yet again.

Whatever your circumstances, now is a good time to consider whether your current policies work for you.

What’s Covered?

Personal risk insurance is the umbrella term for four main types of cover - death, total and permanent disability (TPD), income protection and trauma.

Death cover is self-explanatory. It pays a lump sum to your nominated beneficiaries when you die. It is often packaged with TPD which covers things like living expenses, repayment of debt and medical costs if you are no longer able to work. If your TPD is held through your super fund, generally this will only be paid if you cannot work in “any” occupation; if it is held outside super, you may be covered if you can no longer work in your “own” occupation.

Income protection cover will pay part of your lost income for a pre-determined time if you get sick or are injured and need time off work. It is particularly useful if you are self-employed or private practice as you don’t have access to sick leave.

Trauma cover meanwhile provides a lump sum amount if you are diagnosed with a major illness or serious injury such as cancer, a heart condition, stroke or head injury. Such payments can be a big help with paying medical bills.

If you would like to discuss your life insurance needs and whether your existing cover is still appropriate please contact your advisor.