Types of Personal Insurance
Any insurance policy purchased for your own or your family’s needs, qualifies as personal insurance. Broadly, personal insurance can be categorised into the following types:
- Life Insurance
- Income Protection
- Critical Illness
- Total & Permanent Disability
Life Insurance: Life insurance can help provide cover for the unthinkable, and can be a valuable source of income for your spouse and other near ones. Usually, a non taxable lump sum amount is paid to the beneficiaries you list in your policy. This lump sum can be used for any purpose.
Income Protection: Income protection insurance can help cover any prolonged absence from work. Income protection can be availed by salaried as well as self employed professionals. In the event of loss of work, an income protection policy will help you with a continuous source of income.
Critical Illness: Critical Illness insurance will provide you a lump sum cover in case of critical illnesses like heart attack, stroke or malignant cancer. Such illnesses can take a toll of your finances, and it is a good option to have a critical illness insurance policy in place.
Total & Permanent Disability: Accidents or mishaps can leave you with total or permanent disability, forcing you off work. In such cases, total and permanent disability insurance can provide you a lump sum cover and thus relieve some of your financial burdens. This insurance can also be availed by those who do not have any work and are, therefore, not eligible for income protection.
The amount of personal insurance cover you’ll need depends on a host of personal factors including your financial commitments, your age, you general life expectations etc. For more information on availing personal insurance in Australia, visit www.ccafp.com.au