Most of us tend to think ‘it won’t happen to me’, but one in five Aussie parents will be injured, become ill or even die before they reach retirement1.
In this video (2.36), Diane from AMP explains how, after becoming seriously ill, she realised how it could affect her income and her family’s lifestyle. She sought financial advice and is now financially prepared in the event that something unexpected happens to her again in the future.
Similarly, Sarah from AMP shares her experience about how financial advice helped her and her husband to decide to increase their insurance cover. Now they take comfort in knowing their children will be financially protected, should anything happen to them.
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For more information:
1 Financial services council, Lifewise/NATSEM Underinsurance Report, 2010
About this video
Diane and Sarah work at AMP. They share how getting financial advice - particularly about insurance - has given them, and those who matter most in their lives, greater comfort should the unexpected arise.
Diane and her husband were in the middle of a renovation, they had a home loan to maintain and she’d just started a new job.
Then she suddenly got very ill. Luckily, she didn’t need to claim on her personal insurance but it made her realise how it could affect her lifestyle if she got sick again.
Diane and her husband decided to go and see a financial adviser who made sure they had the appropriate insurance and enough cover to protect both their income and lifestyle.
Their financial adviser also reviewed their whole financial situation. Now Diane and her husband meet with their adviser every year – because life changes all the time and they want to be prepared in case life throws them another curved ball.
In her job at AMP, Sarah sees a lot of insurance claims. She’s learnt that one in five Aussie parents will be injured, become ill or even die before they even contemplate retirement.
Sarah and her husband have three children, and a backyard that the kids love to play in, and they wanted to protect their family in case anything should ever happen to them. .
They decided to speak to an adviser because they realised they didn’t have enough insurance to cover everything and maintain the lifestyle if anything should happen.
Sarah and her husband took out three different types of insurance to cover their personal situation:
- Total and Permanent Disablement insurance - they decided to increase the level of cover they already had within their super.
- Personal insurance – they purchased this as an additional insurance ‘outside’ of their super.
- Trauma cover - to potentially pay out an agreed lump sum if Sarah or her husband suffered a particular medical condition or undergo a particular procedure covered in our policy.
Sarah was happy to know that, if anything were to happen to her and her husband, she could feel better knowing that her family will be taken care of financially.
Diane and Sarah found financial advice was helpful for their situation, but everyone needs to find out what’s right for them.
Consider your circumstances before deciding what’s right for you. The advice discussed here was tailored to Diane and Sarah’s personal circumstances, and it may not be suitable for you.
The risks of underinsuring your most important asset–yourself