Taking care of the ones you love!
What is Personal Insurance?
Personal insurance is designed to help you continue to provide for those you love most, even in the face of tragedy or misfortune. Different types of personal cover include life insurance, income protection insurance and funeral insurance, each of which provide peace of mind in different circumstances.
Life insurance is important for people who are financially responsible for others, including partners, children and elderly parents. By insuring your life, you're ensuring that those who depend on you can still meet important financial needs and continue the quality of life you've worked so hard to provide.
When you apply you can choose a benefit amount to suit your needs and budget, this could be as little as $100,000 or over a million dollars, and in the event of your death or terminal illness, a lump sum will be paid to the beneficiaries you've chosen. This could be used to pay off the mortgage, cover the bills, education fees and day to day costs even when you're no longer around.
Life insurance isn't only for the main breadwinner. We all know that homemakers fill a dozen roles to keep a family in working order - chauffeur, carer, cook and more. Homemakers can be included on a joint policy with their partner, providing a benefit to help cover things like childcare and house help, which would be essential if you were no longer around.
A 2008 survey showed that almost half of Australians would have only enough money for one month if they lost their job1. Your income is one of your greatest assets, and that's why you should protect it - particularly if there are people depending on you for financial security.
Income protection insurance is an easy and affordable way to ensure you receive up to 75% of your pre-Tax income. This could be up to $10,000 (or more depending on the insurer), so if you were unable to work for an extended period due to sickness or injury, you can be sure that you will have a monthly income source. Payments are made monthly, and you can choose your benefit period: 6 months, 1 year, 2 years or 5 years. As an added advantage, premiums are generally tax deductible.
With the average funeral costing between $4,000-$7,0002 in Australia, this is one additional cost you won't want to burden your grieving family with when you die. Funeral insurance is a cost effective way to ensure your family won't face unnecessary financial strain in a time of tragedy.
You can choose the beneficiaries who will receive a lump sum which will be the amount you nominate, which is generally between $3,000 and $15,000. This can be used to help with the costs of your funeral and any other expenses and obligations your death may incur.
If you're a forward-thinker when it comes to finances, personal insurance is something you should consider without delay. A number of the personal insurance policies available on through this website require no medical or blood tests and you can choose a level of premium and benefit to suit your needs.
So whether you're interested in life insurance, income protection or funeral insurance, start comparing your options with Choosi today.
- 2008 Citi Fin-Q survey conducted by Citibank
- Choice, Funeral Insurance Review, By Uta Mihm, 16 Feb 2011.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.