Are You Underinsured?

Ask yourself these questions:

  1. Do you have enough funds in case you suddenly fall seriously ill or injured tomorrow?
  2. Will your family be able to survive without you?
  3. Will your savings be enough to pay for your medical expenses in case of an emergency?

If you answered no to any of the above questions, then chances are that you are grossly underinsured. With underinsurance, you will put your family's future at risk, especially when you die all of a sudden. Without you, they might not be able to survive, pay for the mortgage that you leave behind, continue with their education, or even have funds for their daily expenses.

We're not trying to cause panic or fear here. The truth is that it is painful enough to see a loved one die or suffer, so why add stress and anxiety to that because of lack of funds?

But you are lucky because you still have enough time to change your family's future for the better. That is where life insurance comes in. With life insurance, you and your family will be protected in case something bad happens to you. You can choose from any of the following policies:

  1. Term life insurance - provides your family with a lump sum payment in case you die.
  2. Income protection insurance - provides you with up to 75% of your income if you're unable to work due to an illness or injury.
  3. Total and permanent disability insurance - you will receive benefits if you suffer from total and permanent disability such as paraplegia.
  4. Trauma insurance - you will get benefits if you suffer from any medical condition specified in your policy, examples of which include stroke and cancer.

Just imagine how helpful the benefits will be in case of an emergency. But how much cover do you exactly need? To find out, you need to start with the following:

  1. Your household expenses (utilities, groceries, rent)
  2. Your debts (mortgage, credit card, other loans)
  3. Your other expenses (education, leisure)

You need to take these things into account in order for you to get a clear picture of how much your family will need in an emergency. But to get a more accurate picture, you'll need the help of a qualified life insurance advisor at Rate Detective. They will assess your personal circumstances and provide you with personalised rate comparisons of Australia's top insurers. All these will help you find out exactly how much cover you need and be free from the dangers of underinsurance. Contact us today for more details.

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Published on June 6-th, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.