Although we may think that we do need insurance while you’re young and healthy, it makes sense to prepare for the unexpected and to take steps to protect ourselves and our family, financially in case the unthinkable happens.
Dealing with a death or serious illness in the family is difficult enough without the added strain that comes with a loss of income. That’s why life insurance is so important.
Our dedicated and qualified life insurance advisers get to the heart of what’s important, helping you take charge of your policy. We compare and sell insurance products from a range of Australia’s leading life insurers helping our customers with Life Insurance, Income Protections, Key man insurance, and disability insurance.
“Credit Hub Australia will review your policies every time your income or your personal circumstances change to make sure you have the right type and level of cover.”
How much Insurance do you need?
There is no correct answer, but more insurance gives you more protection. However, it also depends on what you can afford, so you may need to prioritise.
To help work out the best level of insurance cover for you, consider:
- How much cash your family would have if you were to die or become disabled. How much money is in superannuation, shares, savings and existing insurance policies? How much paid leave do you have? What type of support could your family provide? You may also be entitled to government benefits or workers compensation if you get injured (although this may be reduced by income protection claims).
- How much cash your family would need if the worst were to happen. Consider the size of your mortgage and any other debts, as well as childcare, education and other costs.
The difference between these is the amount of cover you should get. However, you may need to compromise between what you would like and what you can afford.
Types of Insurances
Life insurance is not something that should be taken lightly as It involves making a decision on a product that can have a huge impact on the future of your family’s financial situation, when you no longer be around to provide or care for them. Life insurance is not something that should be taken lightly as It involves making a decision on a product that can have a huge impact on the future of your family’s financial situation, when you no longer be around to provide or care for them.
Key man insurance
This Insurance provides a fixed monetary sum, in case when there is a loss of a key employee. A Keyman Insurance policy defines four categories of loss that can be used as the basis of a compensation claim:
- Loss of key staff for an extended period: Keyman Insurance can provide monetary compensation covering the hiring of temporary staff and, if needed, recruitment and training of new staff.
- Profit protection: This is compensation you receive to replace income lost due to the absence of a key person. This might be if they were involved in a project that had to be cancelled, or if their absence results in lost sales or income.
- Financing personnel: Keyman Insurance also covers instances where there has been the loss of a person involved in business loans or banking facility guaranteeing.
- Partnership interests and shareholders: These too may be covered by the Keyman Insurance, which in such instances will allow other current partners or shareholders to purchase the affected person’s holdings.
Total and Permanent Disability insurance
Total and permanent disability (TPD) insurance provides cover if you are totally and permanently disabled due to sudden unforeseen circumstances. You are eligible for TPD when you:
- Cannot work again in any occupation, or
- Cannot work in your usual occupation
TPD insurance helps cover the costs of rehabilitation, debt repayments and the future cost of living.
Each insurer has different definitions of what is and isn’t considered to be totally and permanently disabled. Being off work for a year is NOT ‘permanently disabled’. Ask lots of questions so you know exactly what you’re getting.
This type of cover can be very limiting, hence is affordable