Insurance has been in the news quite a lot recently and some of the news about particular companies has been less than flattering. With all of this negative publicity it is easy to forget how important maintaining adequate insurance with reputable companies is.
Insurance provides financial support in bad times while reducing the uncertainty of risk in business as well as many human situations. Insurance provides peace of mind against the adverse consequences of any particular event.
Insurances should be considered to protect any asset or income producing source.
It goes without saying that all major assets should be insured against fire theft and damage. However, while many people take the steps to cover assets, they may not be so careful in relation to insuring income.
It is essential to recognise that bad things don’t just happen to assets. From time to time we are faced with circumstances that prevent us from earning the income that we are accustomed to.
These events can be accidents, sickness, and death, loss of rent or loss of other income producing assets like stock.
Provision must be made to guard against loss of any income producing source and there are a variety of insurance instruments that could be utilised these include
- Income Protection Insurance – policies can be purchased to cover loss of income in a variety of circumstances. Premiums will be calculated according to risk.
- Mortgage Protection Insurance – available to cover mortgage payments in the event of temporary or permanent disability or death.
- Key Man Insurance – can be taken out to cover the loss of a key man within the business – this is suitable to cover “key players” who the business relies upon.
- Health Insurance – to cover medical expenses.
- Funeral insurance – to cover funeral costs
- Life Insurance to cover death – particularly suitable for parents with growing families.
If you need assistance in assessing what insurance package is best for you, Australian Finance Hub can assist you with measuring exactly what insurance you need and why.