Without question, the two most relevant priorities that emerged during the time of COVID-19 are personal health and finances. These are natural concerns—especially given the state of things—and protecting yourself in both aspects is a step in the right direction! It’s especially applicable when it comes to life insurance, which can offer much-needed support during a crucial time.
To ensure that you don’t fall victim to being underinsured and other insurance-related mistakes, here are some very common mistakes you need to avoid doing:
1. Having No Coverage
Though it might seem like an accident, severe injury, or illness won’t ever happen to you, especially if you’re in good shape, this may not always be the case! Everybody is susceptible to accidents and illnesses, and for those without insurance coverage, the financial repercussions are often disastrous.
Try to think of it this way: if there’s a probability that it won’t happen to you, there likewise still exists an equal possibility that it will. Losing your income due to an accident can really deplete your resources in no time, and the results can be dire! Investing in insurance and securing yourself is still the safest option—so if you don’t have coverage, there’s no better time to start than now!
2. Not Knowing Your Coverage Type
It’s understandable to skim over the Product Disclosure Statements as they can be very lengthy—but this is not advisable, as you should know exactly what you’re insuring and for what inclusions.
There are several types of life insurances and income protection, but the best ones are those with comprehensive policies that provide coverage in a range of circumstances. Today’s most pressing concerns are the dangers of the Coronavirus, so you’ll want to make sure your premium covers that risk along with similar health issues. Income loss due to conditions like depression and anxiety are also eligible for claims nowadays.
Finding a personal insurance broker can help, especially in this aspect. To determine your insurance needs, they take into consideration your financial standing, the goals you might have, and your lifestyle. The right financial planner can help you fulfil your insurance needs while ensuring it doesn’t burn a hole through your savings.
3. Relying on Your Superannuation
Many superannuations will include insurances, but it’s always a good idea to ask what kind of protection it really offers. More often than not, these policies are not comprehensive and might only be able to cover a small percentage of your income or come with a cap.
Policies and definitions are also subject to change without prior notice, and the right coverage is often very costly.
4. Not Updating Your Policy and Coverage
As you go through life, many changes will occur that govern your needs. Your lifestyle may be different, and your priorities will probably change as well. All of these factors should influence the insurance policy that covers you, and it might be some time since you last updated it.
The right level of cover may have increased since you last bought your insurance, so now is the perfect time to reassess whether you’re overpaying or if you need to bump up your premium. Always consult with your adviser to make sure you’re getting the right coverage for the right price.
Life insurance is one of the best things you can give yourself. It’s an investment in your security in health and finances should anything unexpected take place. People can never really tell when a threatening illness or accident will strike—and COVID-19 is the perfect example of that. It pays to be ready for life, and the best way you can do this is through an insurance plan that covers your needs!
Jubilee Financial Services recognises that it’s much more than just about the money. No matter your position, age, and circumstances, reaching your life and financial goals is in our best interest. To learn more about how we can tailor plans to your individual needs, contact us today!