Why is Personal Insurance so Important?

Apr 07 2016 by Vogue Financial

Protection against life’s uncertainties is sensible financial management. Investing in personal protection insurance will ensure that you and your family can continue to enjoy the quality of life that you want.

Having insurance can provide financial protection for your family’s personal needs, where there is no longer someone able to provide an income to support those needs. Insurance can be structured to provide for such things as the repayment of your debts upon death, disability or illness, financial assistance for dependents, for example paying school fees and protection against the loss of income.


Most people have insurance for their home and motor vehicle, but fail to cover their most valuable assets – their life and their ability to earn income over the long term.

A study reveals that 70.5% of Australians have car insurance but only 17.4% take out life cover. Over 50% have home and contents insurance but less than 7% protect their income and only 5.5% hold total and personal disability insurance.


You might think that you are at low risk of needing personal protection but the statistics tell another story.

An Institute of Actuaries Study has found that you have a one in three chance of suffering a major medical illness between the ages of 30 and 64. Don’t you know someone that has been touched by Cancer? They all want a similar thing, to have the best possible chance of recovery, by getting the best treatment, which is not covered by Private Health Insurance or Medicare and to ensure that their loved ones are taken care of.

According to a Lifewise/ NATSEM study, the typical Australian family will lose half or more of their income following a serious illness, injury or loss of one parent as a result of underinsurance.

AMP/NATSEM research reveals that in the last decade median house prices have almost doubled while median after-tax incomes only increased by 50% – resulting in  bigger mortgages that take longer to pay off.

These statistics are alarming and they illustrate that despite what we might think, the unexpected can and does happen.


Many Australian families are affected each year by a serious illness or injury, or worse still, an untimely death. Naturally, our first thoughts are of the emotional impact of these events. However the financial consequences can also be devastating.

If the unexpected did occur, having personal risk insurance can go a long way to helping you and your family meet your basic living expenses such as your mortgage, groceries, petrol or school fees. Depending on the event, you may also need to cover significant medical expenses, rehabilitation, modifications to your home or services to help maintain your lifestyle.

We aren’t trying to scare you, but we really wanted to present the facts about taking care of your family and loved ones in case of an accident.

With the instances of critical illness increasing, it’s now more important than ever to ensure you’re protected. If you’re not sure what sort of cover you have, contact us today.


We’re happy to chat with you, obligation free,
about your future financial freedom.

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