How much insurance might I need?
Insurance protects both yourself and your family from the unexpected. Temporary Disablement, Total and Permanent Disablement and Death can cause financial stress to singles and families alike and insurance is one way to relieve the stress.
Before you decide what level of insurance cover you need, think about what debts you have. Will your loved ones have sufficient money in the event of your death or injury to support your needs?
The following checklist outlines some of the expenses you should take into consideration when determining the right level of insurance cover to take out, you may wish to use this as a guide:
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Details of debts or ongoing and future expenses
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$ Amount
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Outstanding mortgage (rent), rates, etc.
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Other outstanding loans (car and personal)
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Outstanding Credit Cards, etc.
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Unpaid Bills
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Medical Expenses
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Funeral Expenses
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Training and Education
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Annual Family Income
(x number of years income required)
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Estimate per year cost of living expenses (including children)
(x number of years)
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Total Estimate
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You may wish to seek advice from a Financial Planner prior to making a decision, if you do not have one, please contact us directly on 1300 130 780.
Whilst we believe insurance cover is important for protecting our members, we recognise that there may be some circumstances where insurance is not required.
Calculate how many units you need
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Amount of Insurance Needed
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÷ Cover for one unit at your age
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= number of units
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Example:
John is 34 years of age and wants approximately $400,000 Standard Death & TPD Insurance.
Death & TPD insurance for 34 years of age = $98,400 for one (1) unit of cover.
Amount of insurance needed
÷ Cover for one unit at your age
= number of units
$400,000
÷ $98,400
= 4.08
Therefore 4 units of Death & TPD cover (costs $2.00 per week per unit of cover):
The cover is: 4 x $98,400 = $393,600
The cost is: 4 x $2.00 = $8.00 per week
Members can apply for multiple units of cover up to a maximum of $2 million of Death Only or Death & TPD insurance. Applications for $2 million of cover will receive the next unit below $2 million.
