Category Archives: personal insurance

A Basic Explanation of Personal Insurance

 Davidson Institute once said that people frequently do not pay heed to insurance. They assume that it's too complex. Well, we will try to make the issue of insurance easier to understand, especially personal insurance.

Personal Insurance Explained.
A lot of Australians won't flinch when paying insurance premiums for their automobiles, but they have a hard time with insuring themselves. The truth is, personal insurance is about just that, securing yourself and the people you love. There are three types of policies: life, income protection, and Total and Permanent Disability, or TPD.

Life Insurance.
This may surprise you, but every single day, 18 families in Australia families lose a working parent. This statistic is based on a report done by Lifewise Underinsurance in 2010. This is the main reason for getting life insurance.

Life insurance is one of the smartest financial structures in modern society. Insurance has not always existed in the modern world. It is a guarantee your monetary contribution to your household even when you are not here any more. That is amazing. Life Insurance Company

Think about the situation when a working parent dies in a typical family. The household income will immediately be reduced to half, but the expenses stay the same. That includes mortgage payment on the residence, school tuition for the kids, food and clothes. So, life insurance is the smartest way to make sure that your death does not ruin your family's finances.

You just have to pay monthly premiums regularly while you are still living. When you die, your family will get a lump sum to help pay for all expenses, including your funeral expenses.

TPD Insurance.
The "she'll be right" attitude typical of Australians is one thing that can keep you from thinking about TPD insurance. For example, the Heart Foundation says that the number of heart attacks experienced by Australians each year is the same as having one heart attack every ten minutes. However, eighty percent of Australians from 25 to 65 years old think that they are not likely to go through a serious illness within the next two decades. This is based on a survey done by OnePath in 2008.

Total and Permanent Disability (TPD) insurance is a lot like life insurance. The key difference is that you will still be present to enjoy the benefits because you get paid if you get an illness or injury that incapacitates you instead of leading you to die.

TPD insurance can be a bigger asset to your family because any illness or injury that debilitates you will no doubt incur expenses for medical care. This means your spouse will also need to take care of you and work at the same time. To avoid such a horrible situation, you should seriously think about TPD insurance when you are still strong and in good health.

Income Protection Cover Explained In Plain English

TPD and life insurance may not be the right choice in every case because not all illnesses and injuries result in death or permanent disability. This may be more appropriate for income protection.

Some situations require a little more recovery time before you can resume your contribution to your family. For example, the Australian Institute of Health and Welfare put out a report saying that early diagnosis and advancements in medicines have improved the rate of survival among cancer sufferers. The cancer survival rate was only 47% from 1982 to 1987 but went up to 66% in 2006 to 2010. However, these cancer survivors can't work while they are recovering, but they still need a way to get income. Personal Insurance Provider

If a continued revenue stream is not available during that recovery time, such an illness could mean disaster for your family's financial situation. Luckily, income protection insurance offers this constant stream of revenue. Personal Insurance Firm

What is Personal Insurance?

Personal insurance is taken by individual for financial protection to the dependents due to future uncertainties. The insured pays regular premium to the insurance company in exchange for a financial protection agreement. In case the policy holder incurs some losses stipulated in the policy, the insurance company pays for all the expenses as agreed in the policy. To get a better understanding of what personal insurance refer to, visit this website There are various kinds of personal insurance covers such as:

Life insurance.

The most common kind of personal insurance. It covers the risk accompanying the demise of a loved one, usually a wage earner. As long as premiums are paid as stipulated, the policy pays a large amount of money to the dependents upon the death of the policy holder. There are two types of life insurance: term and whole. Term life insurance usually covers the insured for a given period of time, a lower premium payment is involved. Whole life insurance policy covers the insured for lifetime irrespective of deteriorating health, & it’s also a saving plan. Go online to get more info about personal life insurance.

Auto insurance.

In some states/ countries the motorists are required to carry along automobile liability insurance. This policy protects other individuals from any damages/risks you may cause while driving. In addition, other types of insurances are offered by auto insurance companies to cover for the damages that might result from your driving. Go online to read the various types of personal auto insurance.

Health insurance.

This policy helps you pay for all cost related to medication & medical care. This type of personal insurance is necessary in most individuals due to the expensive nature of any kind of medical care. Subject to your policy specification, if you become injured/you’re your health insurance company may help in paying for hospital stay, medication, surgeries, rehabilitation & psychiatric therapy. You read more about personal health insurance by visiting this website