Why Insurance Matters
Insurance is your financial safety net. It protects you, your family, and your assets from unexpected events that could otherwise cause significant financial hardship. While nobody likes to think about worst-case scenarios, being prepared can make all the difference.
Essential Types of Insurance
Home Insurance
Protects your property and belongings against damage, theft, and disasters.
- • Buildings insurance (structure)
- • Contents insurance (belongings)
- • Combined policies available
Life Insurance
Provides financial support to your loved ones if you pass away.
- • Term life (fixed period)
- • Whole of life (lifetime cover)
- • Family income benefit
Health Insurance
Covers private medical treatment and healthcare costs.
- • Private medical insurance
- • Critical illness cover
- • Income protection
Car Insurance
Legally required if you drive. Covers accidents and damage.
- • Third-party (minimum legal)
- • Third-party, fire & theft
- • Comprehensive (full cover)
How Much Cover Do You Need?
Life Insurance
A general rule of thumb is to have 10x your annual salary, but consider:
- Outstanding mortgage balance
- Any other debts (loans, credit cards)
- Future education costs for children
- Living expenses for your family
Home Insurance
Buildings insurance should cover the rebuild cost of your home (not the market value). For contents insurance, go room by room and estimate the value of everything you own. Don't forget items like:
- Electronics (laptops, TVs, phones)
- Jewelry and watches
- Clothing and furniture
- Sporting equipment and bicycles
Understanding Excess
The excess is the amount you pay towards any claim. For example, if you have a $250 excess and make a claim for $1,000, you'll pay $250 and the insurer pays $750. Higher excess usually means lower premiums, but make sure you can afford the excess if you need to claim.
Important Considerations
- • Always read the policy documents carefully - know what's covered and what's excluded
- • Check the claims process and reviews of the insurer's customer service
- • Review your cover annually - your needs change over time
- • Don't automatically renew - shop around for better deals
- • Pay annually if possible - monthly payments often include interest charges
When to Review Your Insurance
You should review your insurance cover when:
- Buying a new home or moving
- Getting married or having children
- Changing jobs or getting a promotion
- Buying expensive items (jewelry, art, electronics)
- Starting a business or becoming self-employed