When it comes to financial planning, personal insurances play an important role in protecting you and your loved ones from the unexpected. Think of them as your financial safety net, giving you peace of mind and ensuring that you’re prepared for life’s curveballs.
Now, let’s break down the different types of personal insurance:
- Life insurance: This one’s pretty straightforward. It pays out a lump sum if you pass away, helping your family maintain their lifestyle and meet future expenses.
- Total and permanent disability insurance (TPD): If you become permanently disabled and can’t work, TPD provides a lump sum to help cover your living expenses and medical costs.
- Trauma insurance: Also known as recovery insurance, this one pays out if you’re diagnosed with a serious illness like cancer or suffer a heart attack or stroke. It helps cover medical expenses and gives you time to focus on your recovery.
- Income protection insurance: If you can’t work due to illness or injury, income protection insurance steps in to provide a regular income (usually up to 75% of your pre-illness income) to help keep you afloat financially.
So, how much life insurance do you need? A good starting point is to calculate your debts and future living expenses, then subtract your current investments and super. Your financial adviser can help you crunch the numbers and find the right level of cover for your unique situation.
Reviewing your insurance whenever you hit a major life milestone, like buying a home, getting married, starting a family, or retiring is also a good idea. As your life changes, so do your insurance needs.
When it comes to choosing the best insurance, it’s important to read the fine print and understand what’s covered. That’s where your adviser comes in – they can help you navigate the complexities and find the right policy for you.
Remember, having the right personal insurance in place is all about protecting what matters most – you and your family. So, don’t put it off. If you have any questions or concerns, chat with us today. Virtuous Wealth is here to help you plan for the future and give you that all-important peace of mind.
