Personal insurance helps protect your income and assets in the event of illness, injury, permanent incapacity, traumatic illness or death. It’s a key ingredient in a robust financial strategy, particularly if you have financial dependants or you’re building assets from personal effort to help fund retirement or future goals.
Why have personal insurance?
While many people consider personal insurance to pay out a mortgage should they die, fewer consider the significant financial impact disability or a serious ongoing illness could cause to them and their family.
Disability, trauma or prolonged illness can reduce your ability to earn an income, and in most cases, this will lead to drawing on savings or home equity to cover medical and daily living expenses, and ultimately affect your family’s living standard.
By providing a lump sum benefit or regular income, personal insurance such as life, disability, income protection and trauma insurance, can help ensure your family is supported financially should the unexpected happen.
There is a wide range of personal insurance products available, and many different clauses and options within each, so consider them carefully to find the one that best suits your needs. Your financial advisor can give you expert advice regarding the options and your individual circumstances to make the choice easier.
Life insurance pays a lump sum benefit when the insured person dies or becomes terminally ill. Life cover generally assists the insured person’s beneficiaries to pay outstanding debts, cover medical and funeral expenses or provide a regular income.
Learn more about life insurance.
Total and Permanent Disability (TPD) insurance provides a lump sum payment if the insured person suffers a disability which is both total and permanent, such as loss of limbs, and is unable to return to work as a result.
Find out more about disability insurance.
Income protection insurance
Also known as salary continuation, income protection insurance provides regular income, (up to 85 per cent of monthly employment income) if the insured person suffers any one of a range of conditions such as total disability, partial disability, injury or ill health that prevents them from working.
Learn more about income protection insurance.
Trauma insurance, also known as critical illness cover, provides the insured person with a lump sum payment if they suffer a specified traumatic event, such as cancer, heart attack or stroke. The payment can be used for any purpose such as paying the mortgage while they are unable to work, for medical care or to relieve financial pressures
Find out more about trauma insurance.
Learn more about personal insurance exclusions, loadings and indexing.
Dixon Advisory can help
Dixon Advisory’s Financial Advisors can help you determine which kind of personal insurance will best suit your individual needs. Contact one of our Financial Advisors on 1300 883 158