Insurance explained why you should ensure you think about who depends on you, your spouse, partner, children, business partners, and extended family members. Chances are that many people depend on you not only for your love and support, but also what you bring home as part of the family income. Maybe it's a lot, maybe it's little. Whatever it is, it's vital to you and the ones you care about. If you can look into a crystal ball and see how long you live, you can save for the fateful
Day and have everything ready for your family. But that isn't reality, is it? Let us explain to you the four kinds of personal insurance everyone should understand. Probably the best way to explain these is to tell you a story of a claim. It involves the couple who were caught in the Black Saturday bushfires of 2008. I'll call them Kingston and Felicity . They were in their car, literally trying to outdrive the bushfires. Unfortunately, they both got trapped while they both survived.
Kingston suffered third degree burns to 22% of his body. When this happened, Kingston had the four types of insurance. Life insurance, total and permanent disability cover income protection. He also had trauma cover while Kingston had these four types of insurance. Everyone is different and should seek their own financial planning advice First, life insurance. Kinston was very fortunate that he didn't die, but if he had, then his life insurance would have.
Protected his wife from the financial impact. Most people understand life insurance and many of us have it through our super. It's a payment to a beneficiary, generally if you die or become terminally ill. Second total and permanent disability cover. The good news was that Kingston was responding to treatment and would have been able to return to work soon. But if he had been permanently disabled then his cover would have paid him third income protection. Kingston income protection paid him a monthly benefit.
Of around $8000 while he was not working during his recovery. 4th trauma insurance. Few Neighbors are aware of this but Kingston had trauma cover and it was a big help to him with the severity of his burns. He qualified for a benefit and the insurer paid him $609,000. A trauma claim can be a big help as you adjust your life, whether you're recovering from cancer, heart attack or in Kingston case, severe burns.
Now, Kingston and Felicity were like many Asian in their prime of life, didn't expect anything bad to happen. But it did. And if they've been like a lot of us and had never really looked at the insurance they might need, they'd be in great financial stress now. But the great news is they did think about it and recognised that these events might occur and they insured against them. With the benefits received, Kingston and Felicity were able to buy a home and Kingston didn't have to worry about money during his recovery process.
So for Kingston and Felicity , having these insurances in place was very, very smart.
So based on this story it tells how important insurance is.
