What would happen to the future of your family if you were to die suddenly? What would happen if you were to suffer a sudden disability, terminal illness or major injury? This type of event could be devestating to your family's well-being and security.  Personal insurance can protect you and your family against this type of loss.

What is personal insurance?

Personal insurance relates to a variety of insurance cover options that protects individuals against loss due to death, illness or injury.

Although this can be a sensitive and emotional issue it is important to be aware of the potential risks and ways you can protect your financial well-being as well as providing quality of life in the unfortunate case of serious illness or injury.

There are four main types of cover:

1. Life cover

Life insurance provides an agreed amount upon your death to support dependants.  It can be used to help pay one-off and ongoing expenses such as mortgage, personal debts, funeral expenses and childrens education.

2. Income Protection

Income protction insurance provides an income stream to support you and your family if you can't work due to illness or injury.  This can usually provide up to 75% of the pre-tax income that you earned prior to injury or illness.  This insurance can help you make ongoing mortgage payments, as well as servicing other debt and providing an income.

3. Trauma cover (Critical Illness Insurance)

Trauma insurance (or critical illness insurance) provides a lump sum payment to you if you suffer a specific major medical condition (e.g. cancer, heart attack, stroke etc.).  This insurance can be used to relieve the stress associated with the medical condition by providing for medical expenses, mortgage payment, extended holiday or subsidising your income if a change of employment is required.

4. Total and Permanent Disablement (TPD) cover 

TPD insurance provides a cash lump sum to support you and your dependants if you are permanently incapacitated (and never able to return to work) as a result of an injury or illness.  This can help pay off mortgages or other personal debts, provide an income or help with expenses associated with a change in lifestyle.

How much cover do I need?

The right amount of cover is different for everyone.  A qualified financial adviser can analyse your situation and make recommendations to help you get the cover you need and the level of cover that suits the needs of your budget and your family.

"It is important to get the right level of cover - many people are under insured whilst some are paying too much for insurance they don't need"