(03) 9020 2905MOST of us need? Seriously. All Gen Xers need it! Like we need air. And Sunnyboy iceblocks on 40 deg day.
Ask yourselves the following. Have you got a mortgage, kids, partner, debt or a job? Still breathing?
The more of those you said “uh-huh” to, the more insurance you need. Unless you won lotto and still have the bundle, unlike the Taylor family in the devastatingly bad 90s show, Chances.
I’ll ignore “general insurance”, such as home, contents and cars. You generally understand and have them.
The “life” insurances – life, total and permanent disability (TPD), trauma and income protection – are about protecting your family from financial Armageddon should the unthinkables occur.
Life insurance pays out if you’re not breathing anymore. Often, when someone dies, the survivor loses the house as well as their partner. Cover it all and plenty more so your partner can continue to raise the kids as you’d planned.
TPD covers major accidents, such as the loss of arms, legs or eyesight. If you can’t work again, you want enough to create an income stream. (Or learn to survive on a disability pension.)
Trauma insurance is “illness” cover. For example, heart attack, cancer and stroke. It’s designed to cover medical expenses, extended time off work and to make sure things are looked after while you recover.
Income protection insurance is the most important of all to Xers. Your income provides your lifestyle, pays the mortgage and raises the midgets.
The bigger your commitments, the more life/TPD and trauma you need. Insure your income all the way through to age 65.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.