Why it is still important to have permanent disability insurance in Australia.
With the rollout of DisabilityCare Australia, many Australians are of the mistaken impression that it will no longer be necessary to purchase permanent disability insurance. This is not true, as the current setup will not affect Australians who suddenly find themselves with a total and permanent disability due to accident or illness.
So, how do you decide exactly how much total and permanent disability insurance (TPD) you need?
The first thing to do is to get a firm grasp on your personal financial situation. For example, how much money do you owe on credit cards. You probably also have an automobile loan and a home loan: how much would it cost to pay them off? How much would it cost for utility bills? How much would it cost you to eat?
If you suffer a permanent disability, you may also have to retool your home and automobile to help compensate for your disability. You may also need carers to help you in your diminished physical capacity. How about your general living expenses? You may also want to make investments in the future. How much money will you need on a monthly basis to cover all of this?
You will probably want to also take inflation into account and the possibility of interest rates rising, because these factors may increase your mortgage repayments.
If you already have income protection cover, you can subtract those payments from the amount of money you would project needing in the case of permanent disability.
Talk to Us in Person
The above recommendations are general in nature, but there really isn’t a “one size fits all” solution here. Everyone’s financial situation is different. Our Perth financial planners and insurance specialists are experts at helping people determine their true financial needs. Often, people have hidden debts or hidden assets, about which they have forgotten.
We help you produce an accurate assessment of your financial needs and then help you find a way to get to where you want to go. We offer many more services than insurance; we are a virtual “one stop shopping” solution for all of your financial service and insurance needs. Integrating them all into one package can be very beneficial.
Call 08 6462 0888 today.