Flourish Health & Wellbeing eMagazine - Jan21 - Flipbook - Page 59
In fact, many Australians have less life insurance
than the size of their mortgage over their family
home. Only 1 in 3 of us have life cover and less
than 22% of us have income protection cover.
What to insure?
There are many insurance policies you can take
out, with no hard and fast rules about which ones
you need. It really depends on your situation and
level of risk.
A good place to start is to prioritise your wellbeing
above possessions, focusing on the main types of
personal insurance available, and why you might
need them.
Let’s break them down:
Income protection
Your ability to earn an income is your most
valuable asset. Someone earning a full-time
average wage for 35 years could earn millions of
dollars - it’s worth protecting this.
Also known as salary continuance, it provides an
income of typically up to 75% of your earnings, in
the event you’re unable to work due to illness or
injury. It provides a level of comfort knowing that
vital expenses are met while you recover.
Life insurance
A lump sum amount is generally paid when you
die or in some cases, if you’re diagnosed with a
terminal illness.
Cover can be taken inside or out of super and can
be used to eliminate debt, provide your loved ones
with a mortgage-free home, create a replacement
for the income needs of your family when you’re
not around, or to supplement your other assets to
meet your intended estate plans.
