Family and personal risk insurance is a way for people to make sure that they and their loved ones do not have to deal with added financial stresses at a time when one of them dies or suffers a serious health setback.
Typical insurances used in a family situation include life insurance, trauma insurance, total and permanent disability insurance, income protection and medical insurance.
Life Insurance pays out when the insured dies. Mostly, life insurance is taken out on the life of someone who provides income for the family, or whose absence would otherwise incur financial expense, e.g. a caregiver who would need to be replaced by a paid person. For anyone with a young family or a spouse, life insurance is absolutely indispensable.
Trauma Insurance covers instances where the insured is diagnosed with a serious medical condition or suffers a serious health setback. These events usually go hand in hand with loss of income, high medical expenses, or forced lifestyle changes that are costly. Not all trauma insurance policies cover the exact same conditions, but serious health threats such as heart attacks, cancers, strokes and loss of senses or mobility are commonly covered.
Disability Insurance pays out when the insured becomes disabled for a prolonged period, preventing them from continuing with their usual activities. The length of this period, the types of disability and the level of the payout varies with different policies, but we will advise clients on the best solutions for them. (This insurance type is often called TPD, which stands for “total and permanent disability”.)
NOTE: To save premium cost, life insurance, trauma insurance and TPD insurance can be combined, so that there is a single payout when the first of these events occur.
Income Protection Insurance provides the insured with their chosen level of income – usually a set percentage of their usual income – if they are unable to work for a prolonged period. Income protection premiums are tax deductible, making this type of insurance extra affordable.
Medical Insurance (also called Health Insurance) can help provide for medical expenses required by any family member. The specifics can be tailored to suit the family, but it’s a good idea to at least provide cover for expensive specialist and hospital treatments that may become necessary.
If you think you may not be properly insured for the risks you face, or you’re paying too much for insurance, please contact us.