Personal insurance provides financial protection in case of sickness, injury, and death, and includes:
• Life insurance
• Total and permanent disability insurance
• Trauma insurance
• Income protection
While insurance doesn’t remove the risk of something going wrong, it provides you and your family with protection and financial security if something does happen.
The amount of insurance you need is affected by:
• How much you earn
• Your cost of living
• Your assets
• Your liabilities
• Your relationship status (whether you are married, in a de facto relationship or single), and
• How many dependants you have.
Insurance protects your family by paying a lump sum or a monthly payment stream. Most people think that insurance is only for the main income earner, but the person who takes care of the family is also a large contributor to the home and can be insured.
Insurance to help financially, if your child suffers a trauma can be very valuable if the worst happens.