Have you considered what happens to you and your family should you fall ill and can’t work? What if you get into an accident, or in the worst case, pass away? It is important to make sure your family is protected in these worst case scenarios, and a reliable way to do that is through insurance. The most common covers for insurance are Income Protection, Total & Permanent Disability, Trauma and Death Cover, which account for most scenarios in which you and your family may fall under financial risk

There is a chance that even if you haven’t directly applied for an insurance product, you may still be covered to some degree. These “hidden insurances” are typically set up by your employer, or through your Superannuation. To find out if you are covered, ask your employer and call your Super fund (including any funds from previous jobs – you may be paying for more premiums than you thought!). Should you prefer not to pay the additional premiums, you’ll need to advise them of your intention to cancel the policy, although we recommend talking to a Financial Adviser first, as cancelling may leave you without any cover should the worst happen to you.

The first step of insuring yourself is deciding exactly how much cover to take. It may seem like a no-brainer to select as much cover as possible (just in case), but doing this can very quickly become prohibitively expensive. Instead, begin by considering what you can afford to put aside on an ongoing basis in premiums, as well as any emergency plans you have in place for yourself and your family. Something else important to remember is your outstanding debts – should you fall ill, you may not be able to keep up regular payments, and should you pass away, the remainder will pass on to your estate, forcing you to leave behind less than you thought, and in some cases leaving your beneficiaries to foot your bill.

Naturally, with a wide variety of products available on the market, there will be some that are better suited to your personal needs, and a great way to find the right insurance is to investigate your options. Reading the Product Disclosure Statement (PDS) is a great way to get a bigger picture view of the cover, and considering tailored cover may save you cash in your premiums. Additional extras may be worth the money as well, so keep an eye out for CPI indexing. Otherwise, the earlier you take insurance out, the more likely you’ll be eligible for a standard rate due to your age and health – the longer you leave it, the more likely you may have possible health problems that can lead your premiums to skyrocket.