Insurance – How Much Should You Have

By Jason Fittler

So you don’t need insurance.  It’s a waste of money, or you can’t afford the premium. Do you have excuses why you have enough insurance or don’t need it? Yes. Then read on.

Insurance is a very important part of growing your wealth
. It saves you when things go wrong. Ever had a car accident?  Did you plan to have an accident. What would have happened if the car wasn’t insured? Glad you had the insurance?  Happy to renew the insurance the following year?

What if you’d been personally injured in the accident?  Your car would be repaired… Would you be? How would you make house payments, car payments, buy food pay for medical expenses?  I guess you could always sell the car once it was repaired.

Insurance is the safety rope which stops us from falling back into poverty and hard times. Could you imagine taking your kids out of their school because you couldn’t afford fees?

Try explaining to them that although you insured the car you didn’t insure their lifestyle.

Think it’s time to start looking at Life, Total and Permanent Disability (TPD), Trauma and Income Protection?  But how much do you need? Let take a look.

Income Protection – most policies will pay you 75% of your current income. You need at least a policy which covers you for 2 years and has a 30 day waiting period. Most super funds will do this.

Trauma – At least $100,000 worth and you should have your children covered as well, they can be covered on your policy.

Life and TPD insurance – To work out how much you should have, multiply your gross income by 16, add to this the amount of your home loan, personal loans and credit cards. This is the amount of Life and TPD insurance you should have. Looks high, give us a call and get a quote. Life and TPD is generally cheap for the cover you receive.

Before you do anything contact us first to make sure you understand the benefits and pit falls of the different type of insurances and to make sure you get the best value for money.