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Underinsurance - are you at risk?

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How would you or your family members manage financially if you became sick or injured, or died? Could they enjoy the same lifestyle? Could your children attend the same schools? Or would their emotional shock be compounded by financial distress?

Consider the following statistics:

  • One in three women and one in two men will suffer from cancer before the age of 85.
  • Every year, 1.1 million Australians are disabled by stroke or long-term heart and vascular disease.
  • Six in 10 families with dependant children have insufficient insurance to cover expenses for more than one year if the main breadwinner couldn’t work.
  • In the event of death or permanent disablility, 80% of families would receive a payout that would last only five years.

The following personal insurances are vital to your family’s financial security.

  • Recovery Money: Pays a lump sum if you are diagnosed with one of the critical illnesses covered by your policy.

  • Life Cover: Pays a lump sum to your beneficiaries when you die.

  • TPD Cover (Total & Permanent Disablement): Pays a lump sum if you are totally and permanently disabled.

  • Income Protection Cover: Provides up to 75% of your monthly income if injury or illness prevents you working.

Your risk insurances should be sufficient to discharge your mortgage and provide income for living expenses and extras such as school fees over the long term.

Adequate personal insurance can provide for your family members if you are no longer able to provide for them. Put your mind at rest by contacting your adviser, who will be happy to review your insurance needs.

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