Insurance Cover

Whether you’re considering life, trauma, income protection or TPD insurance, if you're the breadwinner, you will want to keep your family in something like the style to which they have become accustomed. If you're a housewife /househusband, then you want to provide cash for professionals to take over because you're not around.

Insurance – Some factors to consider in deciding how much cover:

  • How much money might be needed in order to pay off your debts?
  • How much money would your dependents need to continue to live with the same
    lifestyle they are currently enjoying? As an approximate rule of thumb you should
    consider insuring your life for between 5 and 10 times your salary.

Generally speaking, you are looking to insure yourself to produce around two thirds of your earnings or $50,000 for professional care each year.

What type of cover do I need?

You also need to decide on the type of life cover you require:

  • Do you want a policy that pays out a lump sum or one that provides an income?
  • Do you need your cover to increase or decrease over time?
  • Do you need to insure yourself for just life insurance or should you include trauma,
    disability and income protection?
  • How much can you afford to pay?
Cost as a driving factor in the advice process

For many clients cost is a primary consideration and in advising clients at Neville Ward Advice we have to consider your insurance needs versus what you can comfortably afford.  Our advice process focuses on giving you the most comprehensive level of cover for your needs.

For example why insure yourself for death when you’re single with no dependants.  Many clients with no dependants feel they need to cover their debts in the event of death, yet when considering their overall needs these monthly premiums may be better used for protecting their income or a lump sum in the event of a trauma or disability.

Similarly, many individuals with dependents focus on insuring themselves in the event of death, wanting to ensure that their dependents have enough to live on in the event of their death.  The reality is that in the event of death the household would lose their income but would have one less mouth to feed.  However, if they were to suffer a long term illness, critical illness or disability, the household would not only lose that income but would need to continue to feed and potentially provide care for the individual.

The answer to what type of cover you need is different for everyone and really depends on what you feel is important. Using our holistic approach to your insurance and financial planning needs, we look at what is affordable to you and tailor the insurance products around your affordability to give you what ’s best for you.