Importance of insurance

Have you considered how you (or your family) would manage if you were to become seriously ill or injured and unable to work? And what if you died? Who would cover your mortgage, credit card payments, the children’s school fees, and other living expenses?

With insurance you can protect your assets (and income) against future uncertainties.

How much insurance is enough?

Here are some things you might like to think about when working out how much insurance you need:

• how much debt you have and whether you need the debt to be cleared if you (or your partner) were to become disabled or die,
• if you have children, the ongoing cost of raising your children and how will these cost be paid for in the future.

Consider that the average Australian family:

• borrows $262,000 for a new mortgage which requires 35% of income to meet the repayments (Real Estate Institute of Australia, February 2009)

You should seek licenced financial advice before making a decision about the level of insurance cover that is right for you.

Insurance cover options from First State Super

First State Super provides a range of flexible insurance options to suit your needs:

• Death cover (also called Life insurance) provides financial protection for your beneficiaries should you die or be diagnosed with a terminal illness. Cover starts from as little as $2.38 per week and continues to age 70.
• Total and Permanent Disablement (TPD) cover provides financial protection for you and your lifestyle should you no longer be able to work due to injury or illness. TPD cover is only offered with death cover. Cover starts from as little as $5 per week and continues to age 70.
• Income protection provides replacement income (equal to a percentage of your prior income) for you should you be temporarily unable to work due to injury or illness. Insure for either 50% or 75% of your usual income and cover continues to age 65.

Conditions apply and insurance cover and the payment of any claim are subject to acceptance by the insurer. Please read the Product Disclosure Statement for your division.