The Right Insurance To Protect Your Assets

Tuesday, October 10th, 2017

Whether you’re buying a home to live in, or a property to rent out as an investment, knowing what insurance to have helps your assets stay safely protected. To save money on all your property-related insurance, it’s smart to shop around and this is also the same with your motor vehicle insurance.

The sad reality is that most Australians appreciate the benefit of car and property insurance but ignore insuring their most valuable assets – their health and income. And with less than one third of Australians estimated as taking out the right or sufficient insurance policies, your home could be at risk.

How would unexpected illness or injury impact your family?

Even if you have the best possible saving and property investment strategies in place, your house could be at real risk if unexpected illness or injury leaves you unable to earn an income to service your home loans.

To decide what level of personal risk insurance is right for your circumstances, ask yourself these questions:

If you answered ‘no’ to any of these questions, your insurance needs reviewing.

4 Main insurance types

Life insurance – in the event of your death, this provides a lump sum payment to your family.

Total and permanent disablement (TPD) – this lump sum payment is if you become totally and permanently disabled and cannot work again – either in your own occupation, or in ‘any occupation’.

Income protection – this monthly benefit covers up to 75% of your income, if illness or injury means you can’t work for an extended period of time.

Trauma insurance – this is a lump sum payment to help you recover from a trauma or crisis (including cancer, stroke or heart attack, for example).

Many people already have these insurances within their super. It is important to check your policy to see if you are covered – and read the fine print to see if the cover is adequate. Basic insurance cover within super funds is not often personalised to suit your individual circumstances and may not provide the financial support you really need.

Top insurance tip

The cheapest insurance isn’t always right for you and value can mean much more than how much you save on a policy each month.

It’s smart to ask an specialist insurance broker to check your existing policies to see if you can access a better deal but it’s also wise to check that you have coverage for everything that matters to help the protect the lifestyle you’ve worked hard to achieve.

If you have any questions about your finances, either personal or business, please do not hesitate to contact Loans Actually on (03) 8805-1850 or email glenn@loansactually.com.au.


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