There are sooooo many types of insurance that it can be hard to keep track… Let’s get clear on the main types.
What do broken body parts, damaged moustaches and alien abductions have in common? You can insure against all of them.
Yep, there are some VERY random things you can insure. While it may be for everyone, let’s run through some of the more common types of insurance.
We all know car insurance…because it’s likely we’ve had to use it at some point. It can cover repairs or damage to your car… or other people’s cars. And can really help soften the blow when something goes wrong and you need your main mode of transport back in working order fast.
What people sometimes forget is that there’s a certain type of car insurance that’s compulsory in Oz. It’s called compulsory third party (CTP) and it kicks in if you damage someone else’s car.
No points for guessing what this one covers. This insurance covers your house AND all the stuff in it!
If you’re renting, you’ll only need the contents part. That’s because your landlord will be responsible for actually insuring the house or building itself. You can choose to insure a specific sum (say $100k or $1 million) or total replacement which would cover your home to the same standard as it is today.
Yeah, we’ve got Medicare in Australia and it’s pretty darn great. But many people opt in to private health insurance to help cover the costs of medical care and hospital visits that ain’t covered by medicare. It also gives you a bit more choice about where you’re treated, and by who.
What happens if you suddenly can’t work for a while ‘cos of a nasty injury or illness? How would you pay your rent or mortgage? That’s where income protection insurance comes in. This baby covers a portion of your income at times like these.
Hopefully none of us will ever need this type of insurance, but it’s there for the ‘just in case’. TDP stands for ‘total and permanent disability’, so this type of insurance pays a lump sum if you become permanently disabled in a way that stops you from working.
The name really tells the whole story for this one. If you have life insurance and die unexpectedly, your loved one(s) will receive a lump sum payment to help minimise the financial shock. This type of insurance is often available through your super account.
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