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Is it Time to Review Your Personal Insurance Policies?

Is it Time to Review Your Personal Insurance Policies?

In a year of ups and downs (perhaps mostly downs), people have naturally started thinking about what they would do if something happened to them. Whether that’s getting sick, suffering a long-term injury or disability, losing their job, or worse – it’s important to know that you and your family will be looked after. That’s where the option of insurance comes in – as well as reviewing your current policies

While it’s difficult to keep on top of all of your finances all the time, the importance of regularly reviewing your insurance policies cannot be understated. As your circumstances change – marriage, kids, divorce, buying property, changing jobs, even just getting older – your level of cover should be adjusted accordingly. Across a few broad insurance categories, let’s have a look at why reviewing your personal insurance policies is so important.

Income Protection

Your income is your most important asset, and what most of your future goals and aspirations depends on. There are many different options with income protection, such as the length of the waiting period (how long you have to be off work due to injury or illness before you can claim), ancillary benefits, stepped versus level premium, differences in definitions etc.

Like many things, you pay for what you get. Quite often, income protection attached to larger company or industry super funds are very low cost, but that’s because they don’t cover a particularly wide scope of events.

Trauma & Critical Illness Cover

This form of insurance covers significant illnesses such as cancer, heart attacks and strokes by paying out a lump sum to take care of medical expenses, pay off loans or just provide some peace of mind. Overall, the idea behind Trauma cover is to alleviate the financial stress associated with undergoing treatment for a critical illness so you can focus on getting better.

As we get older, even the fittest and healthiest of us can still fall victim to things like cancer and heart attacks. While this reality is scary, having a level of cover appropriate for your age and lifestyle is critical to ensure you’re not caught out should something unexpected happen. For example, a family history of a particular illness is often a motivating factor for people to take out Trauma cover.

Life & TPD Insurance

Nobody likes to imagine themselves being permanently disabled or dying, but the unfortunate fact is that at some point or another, everyone has their time to check out. Rather than leaving your family with undue financial stress at what is already an extremely difficult time, Life & TPD Insurance pays a benefit amount to your family should you become totally and permanently disabled or pass away.

Particularly at the start of the global COVID-19 pandemic, many people wondered about their insurance policies and if they would be covered should they be so unfortunate to contract COVID-19 and pass away. Generally speaking, Life & TPD policies do not have a pandemic exclusion, so Coronavirus would be treated the same as other illnesses. That being said, travel restrictions put in place as a result of the pandemic have created somewhat of a grey area. It is conceivable that an insurer may not pay out if you were to travel to another country against the government’s travel advice and die as a result of the virus.

Review Your Personal Insurance Policies with McKinley Plowman

Navigating the complex world of insurance shouldn’t be a hassle – the wealth team at McKinley Plowman can look at your current policies, review your risk exposure, and then develop and implement a solution specific to your needs – giving you and your loved ones peace of mind knowing that there is adequate protection in place should something happen. Importantly, this should be done as part of your overall financial plan.

Like many things in personal finance, the sooner you take action, the sooner you can tick it off your list and relax, knowing you’re covered. So, don’t delay – review your personal insurance policies with McKinley Plowman  – contact us today via our website or call 08 9301 2200.

Further reading/references:

https://www.moneymag.com.au/coronavirus-income-protection-insurance

https://www.moneymag.com.au/coronavrius-life-insurance-cover-covid-19

written by:

Aaron has over twenty years of experience in the financial services industry working with large companies and small businesses across all aspects of financial planning. He has broad experience across superannuation (including self-managed superannuation), investments, estate planning and personal insurance, retirement planning and business succession planning.
Aaron is passionate about the value of professional, client-focused advice and enjoys working closely with clients to help them make smart decisions with their money, as well as aiding them to clarify and achieve their financial aspirations. Aaron McCracken of MP Wealth (WA) is an Authorised Representative of Count Financial Limited.

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