Personal insurance: The 3 questions everyone should be asking

It’s easy to see personal insurance as an unnecessary expense until you need it. However, an estimated 96% of Australians are underinsured when it comes to life insurance, which is a startling figure as there is a lot at stake.

As a risk specialist, I see the impact of underinsurance during some of life’s most difficult times. And while most people think about the financial impact alone, the flow-on effects are numerous.

For example, the right cover can give you access to non-PBS treatments that might otherwise be out of reach; we’ve seen these cost as much as $88,000 per cycle. It can also ensure your family remains in their home and your children at their schools, among friends and support networks, as they face the challenges of family illness, injury or grief.

So here are three questions to ask yourself to ensure you, your finances and your family are protected.

#1 Do I need cover?

If you are in early-mid adulthood or in good physical shape, it can be easy to think that these events are unlikely; therefore, insurance is unnecessary. While this belief is understandable, it’s also incorrect. Accidents, injuries and illnesses happen to people of all ages, and sadly, we see the financial devastation they leave in their wake.

Instead of focusing on whether it’s likely, it’s critical to think about what would happen if it did. How long could you or your family maintain your current lifestyle without your income?

#2 Is the cover in my superannuation enough? 

Many Australians rely on the cover in their superannuation without knowing what it includes. Many of these policies are not comprehensive and may only cover a percentage of your monthly income or may be capped.

It’s also important to remember it’s not free. You are paying for the premium from your superannuation. When we review superannuation insurances for our clients, we often find that the cover is inadequate and that the right cover costs the same or sometimes even less.

#3 Do I know what I am covered for?

Even if you have purchased cover, do you know if it’s right for you? Product Disclosure Statements tend to be long and full of jargon, so many of us simply assume we are protected.

It’s also important to remember that insurances are not ‘set and forget’. Circumstances change, and regularly reviewing is critical to ensure you have the right level of cover at the best possible price.

This is one area where a risk specialist can help. We work with you to understand your lifestyle, goals and financial situation to determine your insurance needs. We can then find the right cover without you having to find, compare and understand multiple options.

If you are thinking about how to protect your future, reach out to the Apt Wealth Partners team. It could save you some time and money today, and will definitely save you a lot of additional heartache and worry should an accident, injury or illness impact you.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.