Around half of Australia’s population has some form of private health cover, with 47% insured for hospital and 56% for general treatment1. This type of insurance normally covers you for a range of medical-related expenses, such as hospital stays, medical appointments, prescriptions, and if you have optional extras, services such as physiotherapy, remedial massage, optical and dental.
But there are other things you might need to consider if you become ill or suffer an injury and can’t work for a period of time. For example, how would you pay for general living expenses for yourself and your family, including groceries, bills and your home loan repayments?
You might be thinking that the odds of something happening to you are pretty low. But statistics tell us one in five Aussies (aged 21 to 64) will be injured, become ill or even die before they reach retirement2.
Let’s look at some case study examples
Nathan is 28 and has just started a new job as a bricklayer. He has signed up for a 12 month lease on a one bedroom apartment and he owes about $5,000 on a credit card for a second-hand car, which he’s paying off monthly. He plays footy twice a week, but recently broke his leg while scoring a try. Nathan’s doctor says he’ll need surgery, be in a plaster cast for weeks and could be off work and footy training for several months.
Jess and Todd are in their early 40s, they have three young kids and a home loan. Todd works full-time as a school teacher and Jess has a part-time job as an administration assistant to help pay for their home loan and the kids’ school fees. On the way to pick up her daughter from school one day, Jess had a car accident that has more recently led to her having a stroke. Her doctor has told her she'll be off work for at least four months.
Jack is a 56 year old, self-employed, small business owner who is looking forward to hanging up his boots to retire soon. He’s got a home loan of $40,000 which he is paying off, and he still owes $10,000 on a personal loan from his daughter’s wedding. But Jack has just been diagnosed with cancer and may not be able to return to work.
Note: These examples are for illustrative purposes only.
In all of these scenarios, medical expenses may be covered by private health insurance, but everyday expenses – like home loan repayments, household bills or childcare will generally not be covered.
Other types of insurance to consider
- Temporary salary continuance - Also known as income protection insurance, pays a monthly benefit of up to 75% of your regular income, if you’re unable to work due to sickness or injury.
- Trauma cover - Provides you with a lump sum payment if you're diagnosed with a specified medical condition or serious injury, or undergo a medical procedure such as for a heart attack, major organ transplant, cancer or stroke.
- Life insurance or death cover - Provides a lump sum payment to the people you nominate as beneficiaries if you die or become terminally ill.
Want to know more?
To learn more about protecting your future and different types of insurance have a look at our online learning module.
If you already have insurance with AMP you can check the level of cover you have by logging into My AMP. If this is through your super, check out your details, including the type, amount and cost of the cover.
Otherwise, you can speak to a financial adviser or call us on 131 267, so we can help you to protect what’s most important to you.
Everyone’s different, so the cover you require will depend on multiple factors.