Everyone’s insurance needs are different.
How much insurance you need to comfortably face the unexpected could depend on your age, your circumstances, your current financial position, your heath, your lifestyle and, of course, your personal preferences.
Below are just some of the factors you might like to consider when considering how much insurance you need.
- Your age. If you’re young and have little financial responsibility you may not need as much insurance cover as someone who is older with a family to look after and mortgage to pay.
- Your circumstances. What is your current salary? You might be married with children who need your support, looking after a relative or living with someone who depends on you financially. Do you have existing insurance cover elsewhere? What kind of investments and assets do you have? Your current circumstances can help you decide how much cover you’ll need.
- Got children? In 2011, the National Centre for Social and Economic Modelling estimates it costs $537,000 to raise two children to age 21. And according to the Investment and Financial Services Association 2005 report ‘Fast facts – a nation overexposed’ - six out of ten Australians with dependent children don’t have sufficient insurance cover to care for their families for more than a year if they were to die.
- Your expenses, debts and savings. If you have a lot of money in savings, you may not need as much cover as someone with no emergency money at all to rely on. You might also like to consider how much your day-to-day expenses are including debt repayments on mortgages, personal loans and even credit cards. Without your regular income, how would these get paid?
- Your health. If your family has a history of certain medical conditions you may want to consider a higher level of insurance.
It’s also important to note that these factors may be different for Death and Total & Permanent Disability insurance cover and Salary Continuance insurance cover.
1. Use Super Adviser
As a HOSTPLUS member, you have access to our online advice tool, Super Adviser. You just need your member number
to get started. Once you’re logged in, select ‘insurance’ to complete the section that can help you understand how much insurance cover you may need.
2. Get some financial advice
If insurance is important to you, an appointment with one of our dedicated licensed financial advisers from Industry Fund Financial Planning (AFSL 232514) can help you determine how much cover may be right for you.
Find out more and contact a financial adviser today