Without appropriate protection how would you afford your lifestyle and service your debts should something unforeseen happen to you and you lose your ability to earn an income. How would your family achieve their goals if you were not there?
These are difficult questions and situations you may not think will happen to you but research shows many unprepared Australian families face these circumstances every day and every year.
Consider that 60% of Australian families with dependents will run out of money within 12 months if the main income earner dies, and one in three Australians could be disabled for more than three months before turning 65.
These sobering facts are a reminder that life is unpredictable and unforeseen events can occur.
Borrowers are more likely to be put under serious strain from illness, injury and unemployment, and are the key reasons for loan repayment delays, compared to rising interest rates and over commitment.1
With appropriate protection you and your family will have peace of mind in knowing that should something unfortunate happen you can continue to afford your lifestyle and won’t have to sell the family home.
There are five main types of personal insurance. These include:
- Life insurance. This provides a lump sum of money in the event of your death.
- Income protection. This type of insurance provides you with an income for a defined period if you are unable to work.
- Total and permanent disability insurance. This provides a lump sum of money if you suffer total and permanent disability and are unable to work again.
- Critical illness insurance. This pays a lump sum if you suffer a specific critical condition.
- Business expenses insurance. This provides reimbursement of regular business expenses for a defined period if you are unable to work.
If money is tight insuring through super can be a way of getting cover for you and your family without reducing your disposable income. For further details about personal insurance click here to view our brochure.
1 'Why borrowers default' 2008, Mortgage Business, August, p.27.
