Scary thought
Most Australians are underinsured.
If you were to unexpectedly pass away, or become so sick or injured you were unable to earn an income who would cough up the cash to pay the bills?
Rice Warner estimates a middle-income family with two kids needs $680,000 of life insurance, but the median amount of cover is only $258,000.
That $258,000 would need to stretch a long way. Mortgage repayments are probably the biggest cost, but you also need to cash to put food on the table, pay bills and education for the kids as you are no longer financially contributing to your family. This is just a start.
What does insurance do?
The job of insurance is to replace some or all of your income if you were unable to continue working. We often need a greater amount of cover when we are younger, because we have more years to be working, which means many more years of living costs. As you can see below, the 'danger zone' is the amount of insurance you might need to replace your ordinary salary.
Life insurance - which provides a benefit if you pass away before a certain age - is just one of the four types of insurance you might consider.
Another is total and permanent disability (TPD) insurance. While it’s not pleasant to think about, what if you were injured to the extent you couldn’t do your normal job or earn the same amount of income?
The idea behind TPD insurance is that it will provide a benefit to financially take care of your needs and that of your family, or anyone dependent on your income.
We have your back
There’s two occasions when people think about insurance:
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When a claim needs to be lodged - sadly, it’s too late at this time;
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When moving superannuation from one fund to another.
The good thing about transferring your super to a new fund is that in most cases you are forced to consider what you are going to do with your insurance cover. It’s a good thing.
We can help you arrange insurance cover within brightday, solving one of the biggest problems super savers face when moving between funds. It’s also the perfect time to make sure you have the right amount of cover should anything ever happen to you.
With brightday, your insurance premiums could be lower than what you are currently paying, because we don't take a commission from the provider. Request a phone call and let us do the maths - there's no cost, and no obligations.