Why take out personal insurance? Put simply, it can help smooth out some of the unexpected turbulence that we sometimes encounter in life, just as motor vehicle insurance can help take the financial shock out of road accidents.
If you have a financial plan, whether it’s a short- or long-term one, then your financial journey along life’s road is already mapped out. Serious risks still exist though, particularly in the form of illness, injury and even death. While we often think “it will never happen to me or my family” unfortunately things do happen and protection can help make sure life can continue for you and your family with less financial stress.
The good news is that there are four main types of personal insurance that can help to guard you against the financial impact of these threats. They are life, total and permanent disability (TPD), trauma and income protection insurance.
But what’s the difference between them? And how can they help support your financial and lifestyle goals?