The insurance you need will mostly depend on your own personal circumstances, including your life stage and financial commitments. This will help you determine what your insurance benefit may need to cover if something were to happen to you.
Everyone’s needs are different, and it can sometimes leave you wondering what type and amount of insurance cover is best for you. Here are a few examples.
You might be starting out in your career; you may or may not have dependants; you may have little debt or short-term debt only.
Think about how you would support yourself if you became ill or disabled and weren’t able to work, either in the short term or long term. Insurance cover may help protect your ability to earn an income and your independence.
You may be more established in a career; with or without dependent children; you may have longer-term debts (e.g. mortgage).
Think about ongoing financial commitments that would have to be covered if something happened to you. Having appropriate insurance cover can help protect your family and the lifestyle that you have worked hard to build.
You may be more financially independent; with or without adult children; lower long-term debt.
Think how medical treatments etc could affect savings. Insurance helps protect wealth, but it’s possible that with fewer commitments your current cover may be more than you need. Cover you had previously could end up costing you more in premiums than necessary.
Try this handy calculator to see what your insurance coverage needs may be according to your circumstances. (Source: MoneySmart)
