• How much insurance is enough for me?

  • 2017 5
  • As one of our members, you are provided with different types of insurance cover. If you are:

    •  Enrolled with an employer: you will generally* receive Death/Total and Permanent Disability (TPD) cover and income protection cover.

    •  Enrolled as an individual: you will generally* receive Death/TPD cover only.

     

    Why do I need insurance?

    If you have dependants to protect and don’t have enough savings to provide for your family should you become disabled or pass away, you may like to have life and income protection insurance cover. The amount and what type of cover you’ll need will depend on your individual circumstances.

    How much insurance do I need?

    • Check that you have enough coverage to pay off debts

    • Verify current and future income requirements

    • See if your insurance will cover possible expenses for illness or injury

    • Factor in any savings that you could use to reduce your insurance burden.

     

    Insurance details

    For example

    • Charlotte is a 50-year-old primary earner

    • Salary: $90,000 per annum

    • Coverage: $1,000,000 in Death and TPD cover

    • Debts: $400,000 mortgage, $20,000 in car loans

    • Assets: $600,000 in superannuation and bank accounts

    • A family with two dependants, both of whom are planning to go to university.

       

    In this example, the amount of Death and TPD cover would not provide enough coverage for the family's need if Charlotte were to pass away.

    There would be a shortfall of $952,077 based on our insurance payout.

    Learn about your own, unique situation using our insurance calculator (or to review the assumptions involved in the calculation above).

    Don't forget, insurance needs are constantly changing. To review your insurance coverage or to get advice on your situation, get in touch.

    Need advice?