In today’s unpredictable world, it is crucial to secure your family’s financial stability and understand the significance of personal risk insurance. While most people insure their possessions like cars and homes, many overlook the need to insure themselves. What would happen if you were unable to work due to injury or illness? Would you still be able to meet your financial obligations?

Unfortunately, a shocking 95% of Australian families lack adequate insurance coverage, leaving loved ones vulnerable during unexpected life events. Personal risk insurance provides financial protection against unexpected events that may impact your income or health. This type of insurance can cover a range of risks, such as disability, critical illness, and death. 

Personal risk insurance offers financial assistance to you and your dependents in the case of a serious illness, disability, or death. There are various types of coverage available, including life insurance, total and permanent disability (TPD) insurance, income protection insurance, and trauma insurance. Each type of coverage serves a unique purpose:

Life Insurance

Life insurance is a financial product that provides a lump sum to your dependents in the event of your death or diagnosis of a terminal illness. This can help cover expenses and maintain their standard of living. Life insurance secures your loved ones financially even when you are not around.

TPD Insurance

If you were to experience a total and permanent disability, we understand that it could have a devastating impact on your finances. However, with TPD insurance, you can receive a lump sum payment that covers living and medical expenses. It brings peace of mind, knowing you and your loved ones are covered in case of the unexpected.

Income Protection Insurance

Are you worried about how you would manage financially if you were unable to work due to an illness or injury? With income protection insurance, you can have peace of mind knowing that you’ll receive a monthly income to help cover your expenses. Don’t let unexpected circumstances leave you struggling to make ends meet. 

Trauma Insurance 

Major medical conditions like heart attacks, strokes, or cancer can cause emotional and financial stress during recovery. That’s why it’s important to consider getting trauma insurance to help ease the burden of expenses during your recovery. By doing so, you can focus on what’s important – your health and well-being.

What kind of insurance do you need and when?

Your insurance needs will change as you go through different stages of life. For example, young families or those with significant debts might prioritise comprehensive coverage to protect against the unexpected. As circumstances change, such as children becoming independent or a decrease in outstanding debts, you might adjust your coverage accordingly.

Assessing your financial situation to determine how long you could manage without an income is crucial. Insurance premiums are priced based on the probability of a claim being made. However, getting insurance coverage is often more cost-effective than dealing with the consequences of an unforeseen event without one. It is essential to understand the details of a policy, such as the benefit amounts, waiting periods, and the duration of coverage, to make informed decisions about what policy to choose.

How can we help you?

Navigating the complexities of personal risk insurance can be overwhelming. One of pmwPlus’ financial advisers can help you find the right coverage mix, understand policy features, and align your insurance strategy with your overall financial goals.

The peace of mind that comes with knowing your family is protected is invaluable. Personal risk insurance is not just a safety net—it’s a critical component of a comprehensive financial strategy that ensures your loved ones can continue to thrive, no matter what life throws your way. Don’t underestimate the importance of preparing for the unexpected. Consult with one of our financial advisers and take the necessary steps to protect your family’s future today.

General advice warning: The advice provided is general advice only. In preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.