When should you review your personal insurance?
Personal insurance plays a critical role in protecting your financial wellbeing in the face of life’s unexpected challenges. Whether it’s Income Protection, Life Insurance, Total and Permanent Disability (TPD) cover, or Trauma Insurance, these policies are designed to provide peace of mind and ensure that you and your family have financial support when it matters most.
Each type of personal insurance serves a specific purpose, and your needs can vary at different times in life.
Income Protection
Replaces part of your income if you can’t work due to illness or injury. Great if you rely on your income to cover bills and lifestyle costs, but also important to be able to maintain your savings goals in the lead up to retirement.
Life Insurance
Pays a lump sum to your family if you pass away. It can help cover debts like a mortgage or give your family financial breathing room.
TPD Insurance
Covers you with a lump sum if you become permanently unable to work due to illness or injury.
Trauma Insurance
Pays a tax-free lump sum if you're diagnosed with a serious illness like cancer, heart attack or stroke. Helps cover recovery time, treatment or time off work.
When to consider or review your cover
Life doesn’t stand still, and neither should your insurance. These are some key moments to consider taking out or reviewing your personal insurance:
- Starting a new job or career
- Taking on a mortgage or other large debt
- Getting married or starting a family
- Reaching a new stage of life, such as nearing retirement
Reviewing your insurance regularly means your policy will remain right for you and your family’s situation. Outdated policies can leave gaps in cover or see you paying for features you don’t need.
Supporting your insurance needs
As FMD’s in-house insurance specialist, I can answer any insurance questions you or your family may have at your next review, or whenever I can help make your cover better or more affordable.
In recent years, big names like AMP, BT, Asteron and CommInsure have left the life insurance space, and there have been significant mergers. This has led to some unfortunate premium increases. The market is currently very competitive, so there could be some great outcomes from reviewing old policies.
It’s worth reviewing your personal insurance, especially if it’s more than three years old. I can work alongside your adviser to help boost your cover or reduce policy costs, or both.
Here’s something to think about: personal insurance isn’t just a safety net; it’s a key part of staying financially secure. Life changes, and so does the insurance world, so it pays to stay on top of your cover.
I always hope my clients never need to claim, but I know from experience that when they do, having the right policy and the right support makes all the difference.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.