Understanding financial advice
Financial life goals
Tools and resources
Products and services
Investing with IOOF
Your retirement goals
Understanding super & money
Insurance; we don’t need it until we do. Learn all about the value of insurance for protecting your health, income and loved ones when life throws you a curveball.
Watch (3 minutes)
Watch (3 minutes)
How do you know if insurance is something you definitely need? Josh from the IOOF team shares a story to show you why insurance cover is well worth looking into.
“Do I really need this insurance?” It’s probably a question you’ve asked at some point when deciding whether to part with your money. But maybe the real question should be “What if I became ill, how would we cope?”
Your health and wellbeing is the most important asset you have, so it pays to put in the hard yards and get your head around the tricky topic of insurance. Illness or injury can strike at any age or life stage, and it certainly doesn’t wait for the most convenient time to happen. Having peace of mind about having enough money if things take a nosedive could be your best investment yet, as well as helping you sleep at night.
Often insurance can come on your radar off the back of someone you know falling really ill, or when you read something scary in your news feed. These events can make you stop and think but you don’t need to wait for a warning signal. In fact, getting on the front foot ahead of major life changes is often the best reason to get your insurance sorted.
Here are some scenarios to have a think about:
But first, a word about insurance policies. While having a general understanding of what type of policy covers what, it’s no substitute for reading your insurance product disclosure statement (PDS) and knowing exactly what you’re getting. Just like travel, or home and contents insurance, policies and the amount they pay out can vary a lot. So it’s worth reading the fine print on something so important in your life.
If you’re working and you, or your family rely on your income to cover the bills, you should be giving serious thought to taking out insurance to protect your income. You have two options for this:
For more information about whether to take out insurance inside or outside of your super, head to What’s the best way to get insurance cover organised?
One of the most important types of insurance you can get is the one you can’t get through your super fund. Trauma (also known as critical illness) cover will pay you a lump sum of money if you are diagnosed with a serious illness, such as coronary and cancer illnesses. These conditions often need years of treatment or rehabilitation, which can be very hard to manage without any financial support. Trauma cover can work hand-in-hand with income protection, which gives you regular payments instead.
Trauma cover isn’t cheap, but it certainly pays off if you need it. And in the event you’re dealing with a serious and stressful treatment such as chemotherapy, you won’t have to worry about money or spend time and energy trying to keep earning an income.
One caveat about trauma cover – it doesn’t cover you for ‘low level’ strokes or cancer where your work is not going to be significantly interrupted. For example, if you need treatment once a week, this would not be considered a serious interruption and the insurer is unlikely to pay out your claim. Each policy is different and it’s important to understand what to expect before taking out any insurance cover.
At the end of the day, insurance is about removing the stress of not having enough money if you become unwell. What works for you might not work for someone else. In the next topic, we dive into helping you choose the right level and type of insurance cover for you.
You can get TPD (Total and Permanent Disability) cover through your super fund. In fact, you may already have it. Check your super statement to find out.
Trauma cover will only pay out if you experience serious interruption to your work. Like any insurance policy, make sure you read the fine print to understand what you’re getting.
Australian call centre
Free to call from landline and most mobile phones
Available weekdays from 8am - 6pm AEST