Adequate insurance is an important part of any wealth management strategy. Three in four Australians will be diagnosed with a serious illness in their working life (Australian Bureau of Statistics) which could leave them unable to work. In fact, Australians have a one in three chance of a disablement causing them to not be able to work for more than three months before turning 65 (Institute of Actuaries Australia).
Many people assume their existing insurance cover via their superannuation fund is sufficient for their needs. While it’s true that insurance through super can be very cost effective, the amount of cover is typically set at a very low level by default. It’s therefore important to understand exactly what level of insurance you need, so you can ensure you’re adequately covered.
Because your situation is always changing, it’s also important to review your cover as you move through different phases of life, including getting married, having children, approaching retirement and paying off the mortgage. As well as the potential to find yourself under-insured, there’s also the possibility of being over-insured for your needs.
As part of our Wealth Management service, your Patersons Wealth Adviser can introduce you to an appropriate specialist to review your circumstances and ensure you have the right level of cover, both now and into the future.