Have you made any?
We have written a few articles on the importance of putting the together right personal insurance portfolio to protect you and your family should anything happen. We can plan for many different scenarios – but we need to protect from the unknown.
The one thing that is for sure is the common mistakes people make when taking out or reviewing their insurances. Look over these quick tips to make sure you are not falling for them.
Thinking about Insurance? – Look to your Super and Beyond
Your superannuation fund is a great source for a cost-effective option for super. The problem is that it is rarely the solution. Many make the mistake of believing their insurance in super is enough.
Insurance in super governed by superannuation legislation and therefore may not be suitable for everyone and every situation. It can certainly form a part of your insurance portfolio in conjunction with other policies outside super – giving you great protection at a reasonable expense.
Stopping at Price
Everyone loves a bargain. Why pay more than you have to? This would be true if you were comparing apples to apples. But when it comes to insurance, no two products are the same.
There are reasons for differing prices when you look closer at the policy, into definitions and options. Before you select a policy on price – make sure you know what you aren’t buying.
Set and Forget
The biggest mistake of personal insurance is believing that it is a set and forget product. Do so and you run the risk of being underinsured, or just as important, overinsured.
When you calculate the levels of cover you require, you look at your current situation then work out the financial impact should something happen to you. You consider the impact on you and your family now and into the future.
Changes in your martial status, a promotion, children or even a new house will change your future needs for insurance. So each time a life event happens, you need to review your cover in light of it.
The one time that any shortcomings in your insurance become apparent is at claim time – and obviously, it is too late by then. You (or your family) don’t want to find out you are underinsured at a time when it is most needed. This is why seeking the advice of a professional adviser is imperative. Yes, you can listen to the advert on the radio and buy a policy over the phone – but is it the right policy to protect you and your family.
If you would like to discuss your current personal insurance portfolio. Or would like to establish one, schedule a no Obligation Discovery Meeting with us at Discovery Wealth Advisers.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. Louella Jorge is an Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser before you act