subject: Is your family fully covered? [print this page] Have you considered who would look after your family if you were injured, or even died? How would your family cope if you lost your income? How long could your family meet their financial obligations if your household lost the major breadwinner? Do you know how much cover you have at the moment?Given the risks we face 24 hours a day, 7 days a week, personal insurance can prove invaluable. Many of the insurance products available these days can provide cover when you need it most.Two main types of personal insurance products are available: lump sum types that pay you a lump sum after a certain event and income payments where the benefit is paid to you on a regular basis.Life insurance can help your dependants financially after you die. The lump sum payment can be utilised to pay off the mortgage, meet funeral costs and other debts and also provide capital to be invested to replace lost income.Total and permanent disablment benefits provide a lump sum payment which can help you cope financially.Trauma or Crisis Recovery insurance can help you cope financially with the effects that a trauma would have on your life, removing the financial stress and paying for any changes you may need to make to your lifestyle. Your lump sum payment can also pay for recovery costs, including rehabilitation, home modifications and a carer.Income protection insurance will replace most of your income allowing you to meet your living expenses if you stop work due to illness or injury. 75 per cent of your income can be paid, so that you can continue to meet your financial obligations.Self employed can also take out business expenses insurance to help the business cope financially while you are absent due to sickness, or injury. The regular payment your business receives during the agreed period can help pay for employee salaries, business loan repayments and the day-to-day running of the business.We find that while everyone's situation is different, a combination of all of these insurances is usually needed to ensure that a family is fully covered. Some of the insurances work hand in hand. For example, if you had a heart attack and were unable to work for 8 months while you were recovering, you would receive a lump sum payment from your trauma policy and a regular income from the income protection policy. By working together, these insurances ensure that the family can meet its normal obligations and have the additional funds required to meet the medical expenses incurred from the heart attack."Plan for the worst and hope for the best"is a motto which sums up why you need insurance. Organise your insurance today.
