Are you insured for the right things?

— 8 min read

It’s funny how most of us insure the simple and material things – like our car and the contents of our home. However, not many of us cover the most important things – like our health and income.

Statistics show that a high percentage of us will be diagnosed with a serious illness during our working life, yet most of us are underinsured – if at all – when it comes to protecting our life and income.

Regardless of whether you rent, have a home and mortgage or you are paying off an investment property, the most important thing right now is to be in the position to be able to continue these payments. And for that, you need to have a financial protection plan in place in the event of unforeseen circumstances.

Do you know what will happen to your family, assets, or you if you can’t work tomorrow? Have you even considered it?

No, it doesn’t always happen to others! And it is essential to ensure that your ongoing financial commitments are able to be met during these difficult times.

Personal Insurance protects the things in life you’ve worked hard to earn and covers you in case of accident or illness providing peace of mind for you and your family.

There are different types of cover that fall under the heading of personal insurance, and depending on your circumstances you may need one or more of the following:

Life Cover:

Pays a lump sum amount of money if and when you die.

Total and Permanent Disability cover (TPD):

Pays a lump sum to assist with rehabilitation and living costs if you are totally and permanently disabled and are unable to ever work again.

Trauma cover:

Provides cover if you are diagnosed with a specified illness or injury. This type of policy includes major illnesses that will make a significant impact on your life, such as cancer, heart attack or a stroke.

This insurance can be used to fund expensive medical treatment that isn’t covered under private health insurance or medication that isn’t funded through the pharmaceutical benefits scheme (PBS). You may have also heard it referred to as ‘critical illness cover’.

Income protection:

Replaces the income lost through your inability to work due to injury or illness. This is probably the most important cover to consider for medical professionals given your ability to earn an income is your biggest asset!

But it’s so complex, what is the best level of insurance cover for me? That is the most important question to answer and you can work it out by asking yourself:

  • How much money would my family have if I was to die or become disabled tomorrow?
  • How much money do I have in savings, superannuation and/or existing insurance policies?
  • How much paid leave do I have?
  • What type of support could my family provide?
  • How much money would I or my family need if the worst were to happen?

Note: to work it out as accurately as possible, consider the size of your mortgage and any other debts, as well as childcare, education and living expenses.

These concerns and questions are often overlooked and often fall back in the list of priorities as life just happens. But remember it can all change tomorrow!

At DPM, it’s our role and professional obligation to remind you of the reality of life and help you to invest in protecting your financial and lifestyle commitments.

If you’d like to chat to one of our personal insurance experts about your personal circumstances and find out how your future can be safeguarded, book a no-obligation initial consultation or call 1800 376 376.

* The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.

Authors

Tom Rogers

B. Comm (FinPlan)

Consultant
Melbourne

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Tom joined DPM in 2016, bringing with him more than 6 years industry experience. He establishes close relationships with his clients and provides holistic insurance advice to ensure both themselves and their families have financial peace of mind.

Christa Pawlowski

AdvDip. (FinPlan)

Consultant
Melbourne

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Christa joined DPM in 2014 and has over 11 years experience across Self Managed Superannuation, Private Wealth and Insurance Paraplanning. Christa works to proactively build lasting professional relationships and is passionate about providing quality service to her clients to assist them in meeting their insurance needs.