This would have to be the most common question I am asked by clients. Unfortunately, there is no answer that would apply to anyone and to add to the confusion, every adviser is likely to give you a different answer! That is because tailoring appropriate cover for a family is not an exact science. Everyone has different financial objectives that they would like to achieve should they die or suffer an accident or illness that prevents them from working for an extended period of time.
It is probably best to start with a brief outline of the four different types of personal insurance available:
- Life cover: Pays a lump sum upon the death of the insured
- Total & Permanent Disability (TPD): Pays a lump sum when the insured is permanently prevented from working.
- Income protection: Will pay a substitute income for a period of time. Usually up to age 65.
- Trauma cover: Will pay the insured a lump sum upon diagnosis of several illnesses, injuries and genetic diseases including cancer, heart-attack, stroke, paralysis, major head injuries, etc.
Our philosophy is to ensure that if any misfortune should befall any member of a family then the insurance cover proceeds should enable the family to continue to maintain their lifestyle. This is achieved through a combination of all cover (both in and outside of superannuation if necessary) that allows affordable ownership for the long term.
If you want to know how much is enough for you, then drop us a line.