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Insurance Tips For Women
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Despite the abundance of information available thanks to the internet, we all
still find it difficult to find the right information when deciding on personal
insurance. The following personal insurance tips are designed to help women, and
mum's Australia-wide, decide on what to do when it comes to personal insurance.
You can even think of it as your guide to personal insurance designed
specifically for women.
So what is all the fuss about?
The fact is that many women are underinsured - which doesn't make sense!
There are nearly just as many women in the workforce, not to mention all the
extra hour's women spend with cooking, cleaning and caring for their
children.
Accidents and illnesses do not discriminate, so whether you're male or
female, single or married, it’s equally as important to have adequate insurance
in place to protect you from unforeseen events.
There's no doubt that if something were to happen, your loved ones may suffer
not only emotionally but financially as well. Adequate personal insurance can
help with household bills, the mortgage, or a paid nanny if you are ill, injured
or if you die.
Even if you don't have children (yet!) it's still a good idea to get the
right types of personal insurance.
What it all means
To save you some time, we've done some of the homework for you. The following
describes the three main types of personal insurance available in Australia you
should consider when looking at protecting your lifestyle and your loved
ones.
Term Life Insurance - Term Life insurance pays a lump sum to your
elected beneficiary or to your estate if you die. It's called term life
insurance because it covers the insured for a fixed period as specified in the
policy (NB. You can cancel the policy at any time without being penalised). For
example, a 99 year term life insurance policy would pay out only if the insured
person passed away within the 99 years specified.
Income Protection Insurance - Income Protection insurance pays a fixed
monthly payment (usually up to 75% of your income) if you are unable to work due
to a sickness or injury. These payments can be used to pay debts and meet
everyday living expenses such as the mortgage and other household costs.
Trauma Insurance - Trauma Insurance, also known as Critical Illness
insurance, pays a lump sum if you suffer or contract a specified critical
condition that is covered by the policy (e.g. heart attack, stroke, cancer,
etc.). You then can use this lump sum as you see fit, but most people use this
money to cover medical costs.
Top 5 Personal Insurance Tips For Women
- Don't forget yourself! Cover yourself and not just your partner - are you
and your partner covered for accident, illness or even worse, death? Or did you
think that covering just your partner was enough? We, as women, are renowned for
self sacrifice, giving all to our spouses and particularly our children, but
personal insurance is one thing you shouldn't skimp on. Even if you are a
homemaker, adequate life insurance and trauma insurance is important - these
will provide for your family financially should the worst happen.
- Get the right policy - getting the right policy will help come claim time.
Generally speaking, if you have personal insurance cover through your
superannuation fund, you may find that it can take longer to make a claim.
Whereas, a policy taken through an insurance company may be able to make a much
faster claim - which can be important if you urgently need funds to cover
medical costs. Also, a policy taken through your superannuation fund may not
cover you for the right amount, which is also important come claim time because
the last thing you need in a time of crises is to run out of money.
- Review your policy regularly - There are a number of life events that could
be cause to reassess your coverage and options. Personal financial changes, such
as an increase or decrease in your overall assets, expenses, or income are one
set of factors to consider. You may also consider other personal factors like a
change in your overall health.
Generally speaking you should review your personal insurance yearly to make sure
it is up-to-date and still meets all your needs. It is also a good idea to
review your policy when planning to have children, and again for each additional
child you have. This ensures that the levels you are covered for are enough
should anything happen.
- Protect your child's future - many women don't know that some personal
insurance companies offer premium-free child cover with select life
insurance, trauma insurance or income protection policies. Basically, you can
cover your children for free by buying insurance for yourself.
Most Child Cover options on standard policies pay a lump sum if your child
suffers a traumatic event or dies. You will have the funds available for medical
expenses and any other additional living costs you may need if a parent has to
temporarily take time off work to look after their child.
- Shop around - just like when you shop around for health, car or home and
contents insurance, so should you when it comes to life, income protection and
trauma insurance. With so many personal insurance companies on the market and
even more personal insurance products, it pays to shop around for the best rate.
Just make sure you don't compromise on the quality of cover you are paying for,
as cheaper does not ways mean better. If you want remove some of the legwork,
utilise an online insurance comparison service to compare the different premiums
for you. That way you get the best price without compromising on the quality of
cover.
Without cover, some women won't be able to afford a medical specialist if
they are unwell and may have to wait for treatment. You may also find that
without adequate cover or the right type of cover you may not have any funds
available to pay for long-term hospital or health care.
That's why getting your personal insurance organised now will save you in the
long run. When something happens in the future, you'll be protected. It's better
to be prepared than to suffer the consequences.
Disclaimer:
This article is not designed to provide personal
financial or investment advice. The information provided is general in nature
and does not take into account your particular investment objectives, financial
situation or investment needs. We recommend that you speak to an xLife
specialist financial Adviser before you make any decision regarding Life
Insurance, Total Permanent Disability (TPD) Insurance, Trauma (critical illness)
Insurance and Income Protection Insurance. The statistics and figures presented
in this report are based upon historical data, obtained from external sources.
There is no guarantee or suggestion that markets will behave as they have in the
past. Future results will be affected by political & economic events.
Information is not directed to any particular persons investment financial
objectives. Therefore, you must seek advice tailored to your individual
circumstances before making any specific decisions. xLife is a Corporate
Authorised Representative of
Millennium3 Financial Services Pty Ltd AFSL No.244252 |
