What’s the right level of insurance?
While most Australians have some level of insurance, usually through their super fund, most don’t have nearly enough. In fact, as a country, we are unfortunately underinsured.
The main reason we’re underinsured is because we’re all different and have different needs. So while most people get a basic level of cover through their super fund, in many cases it’s simply not enough for their needs.
Work out how much cover you need
1. Start by making a list of your living expenses – your mortgage or rent, groceries, electricity and gas, phone, internet, school fees, car repayments etc.
2. How much do you have to live on if you couldn’t work – include savings, investments, sick pay, long service leave etc.
3. How long would that money last?
While you’re at it, have a think about whether or not you would be happy using this money for the day to day expenses.
After going through these 3 steps, you should have a good idea of how much extra money you’ll need each month, and even each year, to get by if you’re not able to work, or if you are no longer around to provide for your family. This is a good start, but often assessing your insurance needs can prove a little more complex that’s why we recommend talking to a planner to make sure you have all your bases covered.
If you want help working out what is the right level of cover for you call us on 1800 757 607 to talk to a Planner.
Death & TPD
The amount of Death & TPD cover you need depends on your current financial situation. Ideally, you should have enough to:
- Cover your current debts (mortgage, credit cards, other loans)
- General living expenses (rent, groceries, utilities, phone, internet)
- Future expenses, like your children’s education and care
It’s also important to look at your partner’s insurance, especially if they aren’t working, or they’re a stay-at-home parent. Many don’t realise that if the stay-at-home parent wasn’t around, the family would require a lot of assistance, both emotionally and financially. For example, the income earner may need to reduce their working hours or employ outside help.
Figuring out your income protection cover is straightforward - all you need to know is your current salary. Income Protection cover will provide you with income for up to two years, if you aren’t able to work because of illness or injury. Members can apply for cover of 50% or 75% of salary. Your cover is based on the salary we have on record, if your salary changes make sure you let us know so that you’re covered for the right level of income. You will need to apply for any increase in cover level or decrease in waiting period, subject to approval by the Insurer. It is important that you we always have your correct salary, otherwise you may not get the income payment that you expect.