An insurance education.

Australia – a nation of optimists?  According to the insurance industry, Australians are desperately underinsured.  So, is it that Australians are eternally optimistic, that they are risk-takers, or just that they are unaware of the insurance products and services available to them?

It would seem that one cause for under insurance is that Australians are unaware of their options in the insurance marketplace.  Not only in that current insurance policies are not updated when new purchases are made, but also that adequate insurance is not taken out in the first place. 

Most people are aware of the common insurances for the tangible objects in your life – motor vehicle insurance, home and contents insurance – but did you know that you can insure all types of property including boats, bikes, trailers and caravans?

Not only that, but you can insure the loan you may have taken to purchase these objects.  This means you can cover yourself financially should a reduction in income occur as a result of unemployment or ill health – these events are never planned, so it’s best to make sure you are covered if such a situation should arise.  This is not just on home loans, as consumer credit insurance is also available on personal loans as well.  

And it’s not just for situations covering temporary health or unemployment as insurance can also cover instances of loss of life. Whether you’re accumulating wealth, taking loans to enhance quality of life or starting a family, life insurance should be a consideration to ensure that in your absence, those you love are adequately provided for and not left with your debt as well as their grief.

Though not a pleasant thing to consider, accidents are never planned, so it makes sense to plan for the possibility and ensure that your income and your debts are protected should one occur. 

Along with life insurance, there are insurances to cover total and permanent disablement as well as critical illness and loss of income due to an accident or illness.  Each of these will help reduce the financial burden on those you love, particularly if you are unable to work to your previous capacity or earning ability.

You can discuss your insurance needs with a qualified adviser or at a retail insurance outlet. Many financial institutions offer a full range of insurance products through well-known providers. 

Quite often, price is a factor in deciding not to adequately insure yourself, but with many of your insurance options being available with periodic payment options, the one-off annual expenses of insurance are not always the only way to go.

Don’t be a statistic if unforseen events come knocking at your door. It makes sense to ensure that you and those you love will not be left in a difficult financial situation by not taking advantage of the various insurance solutions available to you.
 

This advice has been prepared without taking into account your objectives, financial situation or needs. Therefore, before you act on the advice, you should assess whether it is appropriate for you, in light of your objectives, financial situation or needs.
If this advice recommends that you should acquire a particular financial product, you should obtain a Product Disclosure Statement for that product and consider the information in it before deciding to acquire the product.