We can’t always predict the future and most of us don’t really like to think about what would happen to us were the worst to occur. However, it pays to put safety nets in place to protect yourself and your family in the event of the unforeseen.

The unfortunate reality is that every year more than 230,000 parents of working age in Australia suffer from a serious illness or injury, with a substantial number of those being forced to stop working permanently or for an extended period of time.

An additional 200,000 individuals will suffer a critical illness, stroke or heart attack during the same period, which will significantly affect their income and livelihood. The financial impact these events can have on individuals, families and businesses is extreme; in some cases they can lead to financial ruin or even bankruptcy. Preparing for the worst doesn’t mean that it will happen – it just means that you’d be able to weather the storm if it did.

Types of insurance that cover you for ‘worst case scenarios’

Total and Permanent Disability (TPD) insurance can be a godsend if the worst should occur. It is designed to safeguard individuals and families against serious illness or injury that can prevent people from being able to return to work. TPD insurance typically provides a lump sum payment that can be used as an income stream to pay off debts, cover medical/rehabilitation expenses, and pay for home care.

Life insurance is a tough one to think about but it is a critical way of making sure your family would be looked after were you, or your spouse, to die unexpectedly. Life insurance typically pays out a lump sum in the event of death. Life insurance is particularly worth considering if one person is the sole provider for a family, or when a family would stand to lose their home or other major assets were they suddenly forced to rely on just one income.

Get expert advice

The best thing you can do is have a chat with an expert who can help your assess what your financial needs would be were the worst to happen. You may already have life insurance or TPD insurance as a default option on your superannuation account, but it is important to understand exactly what you are really covered for and whether it really suits your specific circumstances and needs.

The right insurance cover will go a long way toward helping you protect your earning potential and possessions and ward off the unexpected. But consider carefully. Insurance comes in a wide variety of shapes and sizes, and boasts a plethora of features, potholes and benefits. Look for specific exclusions, ensure that the inclusions are ones that you want and need, and read wording carefully. If in doubt – get professional advice!

For more information or advice call us on (02) 8268 2900 for an obligation-free chat.