For many people, personal insurance is something they think they will never need. But the reality is many do. Here, David Peck looks at how you can decide on which type of personal insurance is right for you.


A good approach when you are thinking about taking out personal insurance is to start small. Choosing the one type of insurance that could be the most appropriate, based on your age and personal circumstances, will help you understand the real value of insurance.


If you’re accumulating wealth…

The key to building up your wealth, whether that is through a regular savings plan, buying your first home, increasing your contributions into super or investing directly in shares, is to maintain and even increase your income.

Your income is what binds everything together, however what would happen if you suddenly weren’t receiving an income?

Not only does cardiovascular disease (including heart, stroke and blood vessel diseases) affect one in six Australians (3.7 million), it also prevents 1.4 million people from living a full life because of disability.[1]

“This is where income protection insurance (also called salary continuance) is worth considering,” says David Peck, from our Mt Gravatt office, “as it allows you to receive up to 75 per cent of your income should you be unable to work for a period of time.”

“Not only will it protect your wealth accumulation strategy can continue while you recuperate, you may also be able to claim the premiums as a tax deduction.”


If you have a family…

Having a family means there are a lot of people depending on you, and your ability to earn a regular income.

Insurance can provide peace of mind, knowing that your family is protected should something unexpected happen.

And when you consider that 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer by the age 85[2], you can see how important it is to secure your family’s future.

“Having a life insurance policy in place for both you and your partner will help cover your living expenses,” says David, “as well as allowing the surviving partner to take time off work should something happen to you. “

“Life insurance can also be taken out within your super fund, with the premiums deducted from your contributions, so there is little impact on your after-tax income.”


If you are close to retirement…

Around the same time that you start thinking about your retirement plans is when the risk of suffering a major trauma also starts to increase significantly.

While more than 80 per cent of all people with Parkinson’s disease are aged over 65, the average age of diagnosis is 55 to 65.[3]

“Having trauma insurance in place will help to protect you against the costs of such a life-changing event by providing you with an immediate lump sum,” says David.

“This can be used to cover your living expenses while you or your partner take time off work, pay down debts or cover any modifications to your home or car.”

“Trauma insurance also helps to reduce the likelihood of drawing on the savings that you have worked so hard to build up before retirement,” adds David.


If you’re retired…

Life expectancy is now 84.1 years for males and an even higher 87 years for females[4], making it much more likely for events to occur that require expensive medical treatment and ongoing care.

It also means you or your partner could be left with a much lower level of retirement savings should one of you become ill.

To give you an idea, in 2009 over one-third (35%) of Australians who experienced a stroke had a resulting disability.[5]

“Given you are not able to replace the costs of treatment as you have stopped working,” says David, “having either trauma insurance or life insurance in place can help to cover the costs associated with this treatment, and maintain your existing standard of living.”


Let us help…

While it may be appropriate for you to have more than type of insurance, this will at least get you started on the types of insurance to consider, based on your life stage.

Please contact our office today to make an appointment and if you enjoyed this article, feel free to share it with your friends and family. You could also go to our Facebook page and tag those you feel would benefit from this editorial.


  1. Data and statistics – www.heartfoundation.org.au/information-for-professionals/data-and-statistics, February 2015
  2. Cancer Council Australia – Facts and Figures www.cancer.org.au/about-cancer/what-is-cancer/facts-and-figures.html, February 2015
  3. ‘Australia’s Health 2014’ – Australian Institute of Health and Welfare, May 2014
  4. ‘Australia’s Health 2014’ – Australian Institute of Health and Welfare, May 2014
  5. ‘Australia’s Health 2014’ – Australian Institute of Health and Welfare, May 2014


*David Peck is an Authorised Representative of RI Advice Group Pty Limited (ABN 23 001 774 125), AFSL 238429.  David is employed by Investors Advisory Service Pty Ltd ABN 54 060 600 946 (“Practice”) which is providing advice and other financial services as an Authorised Representative of RI Advice Group Pty Ltd. The Authorised Representative Number for Investors Advisory Service is 343843.  This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out.