What would you and your family do if you unexpectedly became ill or injured and were unable to earn an income indefinitely?
- Would you be able to maintain your lifestyle?
- Would you be able to repay debts?
- If you have a business, would it survive?
- Or worse, if you died, would your family cope financially?
If you’re unsure, personal insurance might be worth considering – in fact it’s considered an essential part of any financial plan.
Personal insurance cover can help protect you and your family by providing a financial benefit should something unexpected happen such as illness, injury or death.
Who should consider personal insurance?
Personal insurance is appropriate for anyone who relies on their income to support themselves and/or their family. It’s particularly important if you:
- have new or existing debt
- don’t have adequate savings
- are a single income household
- have a family or dependants
- are a business owner.
What types of personal insurance cover are available?
Different types of insurance can help in varying situations. Some of these can be combined together in one policy.
|Salary continuance (Income protection)||Purpose: To cover the essential costs of daily living if you become unable to work
This provides a benefit of up to 75% of your income if you become ill or unable to work due to accident or injury. Depending on the situation, benefits can continue to be paid until age 65. Premiums are generally tax-deductible if cover is held outside of super.
|Life (Death)||Purpose: To provide your family enough to pay debts, meet immediate expenses and maintain their standard of living if you die
This provides a one-off payment to your beneficiaries if you die. This can help your family repay debts, pay for funeral expenses and medical bills and maintain their lifestyle.
|Total and Permanent Disability (TPD)||Purpose: To help maintain your standard of living if you become seriously disabled
Provides a one-off payment if you become seriously disabled. This can help provide for immediate and ongoing medical needs, any home modifications and to pay any remaining debts.
|Trauma||Purpose: To help you keep on top of things if you suddenly become seriously ill
Provides a one-off payment in the case of a serious illness such as cancer or heart attack. This can help pay for medical costs associated with treatment, repay any debts and unexpected expenses.
How can I obtain insurance cover?
You can purchase insurance cover through an insurance company directly, through a financial adviser or through your super fund. Read more about insurance through your super fund.
A financial adviser can review your overal situation, financial commitments and lifestyle to help you decide on the most appropriate level and type of insurance cover for you and your family. They can also advise you on whether to hold insurance inside super, outside super or to hold a combination of both.
- Speak to your financial adviser.
- Contact Perpetual Private Clients to speak to one of our financial advisers.
- Review our super plans which have optional insurance cover available.
Perpetual or Perpetual Group means Perpetual Limited, ABN 86 000 431 827, and its subsidiaries. Perpetual Private Clients advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This information has been prepared by Perpetual and contains information contributed by third parties. It contains general information and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional financial, tax and/or legal advice. The information is believed to be accurate at the time of compilation and is provided by Perpetual in good faith. However, the statements including assumptions and conclusions are not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.