Do you sleep soundly at night, knowing that you’re well-covered across all areas of your life? According to Lifewise, Australia is one of the most under insured nations in the developed world, with over 80% of us not having adequate insurance to replace our home and contents if it were damaged in a fire, flood or another accident.
In fact, recent research showed Aussie parents with dependents were critically under insured by $1.37 TRILLION dollars!
‘More than three in four Australians will be diagnosed with a serious illness in their working life. The majority of us will rely on savings, selling assets in a depressed market or government welfare. And a significant proportion of Australians would face financial hardship if they were to have an accident, become sick or die.’
How will your family survive if your earning capacity was severely reduced or removed entirely? Let’s look at the most important insurances everyone should have.
House and Contents Insurance or Landlord’s Insurance
This will replace your home and belongings if they are damaged or destroyed by an insured event. If you have an investment property, landlord Insurance will also cover you if your tenant damages your property or defaults on their rent.
Third party insurance only covers the repairs of the other car in an accident
that is your fault. It may also cover you if your car is stolen. Comprehensive
insurance makes sure your car is repaired as well if the accident is your fault.
Waiting lists for surgeries deemed “elective” are long at public hospitals. Most elective surgeries aren’t really elective, they just aren’t immediately necessary. Health insurance is a must for your peace of mind and to make sure you can skip those waiting lists. Many coverage options are available to fit your family’s needs.
This isn’t something we want to think about, but we should. You need to make sure your partner and children can live comfortably if something happens to you. Go for a policy that replaces 10 times your annual income. This can also be paid by your super fund.
Income Protection Insurance
This replaces your income if you are hurt or become sick and are unable to
work. Some super funds may provide a small income protection policy as a
benefit. Find out how much coverage your super fund provides and under what circumstances. If it doesn’t replace at least 75% of your pay if you are unable to perform your specific occupation, look for an additional policy.
So, how do your insurances stack up? If you’re concerned about your current levels of cover, or want to know if you can get a better deal on your insurances – just ask! Your Money Coach can review your policies and help you find the right cover to suit your lifestyle, family and assets.