HEALTH
Health partners chief executive Byron Gregory said it was a myth that private health cover was only for the wealthy.
He said the latest Australian Bureau of Statistics data showed that almost half the population with hospital cover - about 3.9 million people - lived in households where gross annual income was less than $69,993.
People who plan to wait until they are older before taking out private health cover will suffer financially, with the Federal Government's Lifetime Cover system penalising consumers 2 per cent on top of a base rate payment for every year they delay taking out private health insurance after age 30.
Mr Gregory said younger people needed cover just as much as older people: ``Sporting injuries and appendicitis are two of the more common reasons younger people find themselves in need of hospitalisation''.
LIFE
Savings & Loans Credit Union senior manager financial planning Phil Butterfield said the younger and healthier people were, the easier and cheaper life insurance was.
"Life insurance provides a lump sum in the event of death. In practical terms, it provides financial security for your dependents, should you die prematurely,'' he said.
"Your current income, and more importantly your future income, is funding your debts and your family's lifestyle.''
Pinnacle Wealth Management associate adviser John Menelaou said life insurance was "absolutely essential if you are the sole breadwinner in a family'', and it was not uncommon for people to need 10-15 times their annual salary in life insurance.
"It sounds like a lot but life insurance rates have decreased over the years and are more affordable than ever before,'' he said.
"For example, a 40-year-old male non-smoker could expect to pay $63 a month for $1 million in life insurance. With the ability now to structure life insurance within superannuation, it makes it even more affordable.''
TOTAL AND PERMANENT DISABILITY
Mr Butterfield said TPD cover acted in the same way as life insurance, but provided a lump sum if a person was totally and permanently disabled.
"In other words, you will not recover and you cannot work in your usual occupation,'' he said.
"If you become disabled and your future salary is lost to you, not only will you need cover for your debts and your family's lifestyle, you may also need funds for other new expenses such as a carer or modifications to your home or car.''
Eastwoods Wealth Management wealth protection specialist Phil Burt said TPD insurance was sometimes referred to as ``the living death'' in insurance circles because the effects were often similar to those of the death of a spouse.
"Not only is that person's ability to perform tasks and earn an income almost always diminished completely, the person also needs to be cared for throughout the rest of their life,'' he said.
INCOME PROTECTION
This protects your biggest asset - your ability to earn an income - by paying up to 75 per cent of your wage in the event you are unable to work because of illness or disability.
Statewide Superannuation Trust general manager strategy and business development Bill Watson said doing away with income protection cover because times were tough ``could be a false economy''.
"For the sake of a few dollars a week you could be left without an income in the event you are unable to work'', he said.
Ms French said income protection cover was a ``priority personal finance strategy''.
"We've found referrals and inquiries for income protection insurance have grown significantly since the economic conditions have tightened,'' she said.
"Some people have seen their other assets fall in value in recent months and want to build their financial back-ups''.
TRAUMA
AMP financial planner Dominic Pepicelli said trauma cover provided a lump sum payment for people diagnosed with a specified condition.
"The types of conditions that trauma cover will cover people for include heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancer, dementia, stroke or paralysis,'' he said.
"Trauma cover is designed to help cover increased medical costs and living expenses, providing some financial security during the important recovery process.''
Mr Menelaou said trauma insurance could allow for a relatively stress-free recovery and ``provide funds at a time when you want to spend all your energy on recovering and not on worrying about medical bills and household expenses''.
TRAVEL
This can be surprisingly cheap and easy to obtain, and can cover a range of holiday problems including hospitalisation, lost luggage or travel documents and evacuation.
The director of COTA Insurance and Membership services, Ian Yates, said travel insurance was not just for overseas holidays.
"Lost luggage, cancelled flights and damage to rental cars don't just happen overseas, and it is just as inconvenient to be on the other side of Australia without a change of clothes as in a foreign country,'' he said. Domestic travel insurance is often much cheaper because potential medical costs are not included.
"It can cost hundreds of thousands of dollars to treat someone who becomes ill overseas, particularly if they have to be evacuated back to Australia,'' Mr Yates said.
"Inside Australia, everyone is covered by Medicare or have their own health insurance,'' he said.
LANDLORDS
Landlord's insurance is important for people who own investment properties. Those who do not have the right cover could be risking thousands.
Terri Scheer Insurance general manager insurance services Carolyn Majda said damage done to rental properties was on the increase.
"The most common risks for a landlord are malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,'' she said.
"Landlords should choose an insurance policy that has been specifically designed to address these needs.''
Health partners chief executive Byron Gregory said it was a myth that private health cover was only for the wealthy.
He said the latest Australian Bureau of Statistics data showed that almost half the population with hospital cover - about 3.9 million people - lived in households where gross annual income was less than $69,993.
People who plan to wait until they are older before taking out private health cover will suffer financially, with the Federal Government's Lifetime Cover system penalising consumers 2 per cent on top of a base rate payment for every year they delay taking out private health insurance after age 30.
Mr Gregory said younger people needed cover just as much as older people: ``Sporting injuries and appendicitis are two of the more common reasons younger people find themselves in need of hospitalisation''.
LIFE
Savings & Loans Credit Union senior manager financial planning Phil Butterfield said the younger and healthier people were, the easier and cheaper life insurance was.
"Life insurance provides a lump sum in the event of death. In practical terms, it provides financial security for your dependents, should you die prematurely,'' he said.
"Your current income, and more importantly your future income, is funding your debts and your family's lifestyle.''
Pinnacle Wealth Management associate adviser John Menelaou said life insurance was "absolutely essential if you are the sole breadwinner in a family'', and it was not uncommon for people to need 10-15 times their annual salary in life insurance.
"It sounds like a lot but life insurance rates have decreased over the years and are more affordable than ever before,'' he said.
"For example, a 40-year-old male non-smoker could expect to pay $63 a month for $1 million in life insurance. With the ability now to structure life insurance within superannuation, it makes it even more affordable.''
TOTAL AND PERMANENT DISABILITY
Mr Butterfield said TPD cover acted in the same way as life insurance, but provided a lump sum if a person was totally and permanently disabled.
"In other words, you will not recover and you cannot work in your usual occupation,'' he said.
"If you become disabled and your future salary is lost to you, not only will you need cover for your debts and your family's lifestyle, you may also need funds for other new expenses such as a carer or modifications to your home or car.''
Eastwoods Wealth Management wealth protection specialist Phil Burt said TPD insurance was sometimes referred to as ``the living death'' in insurance circles because the effects were often similar to those of the death of a spouse.
"Not only is that person's ability to perform tasks and earn an income almost always diminished completely, the person also needs to be cared for throughout the rest of their life,'' he said.
INCOME PROTECTION
This protects your biggest asset - your ability to earn an income - by paying up to 75 per cent of your wage in the event you are unable to work because of illness or disability.
Statewide Superannuation Trust general manager strategy and business development Bill Watson said doing away with income protection cover because times were tough ``could be a false economy''.
"For the sake of a few dollars a week you could be left without an income in the event you are unable to work'', he said.
Ms French said income protection cover was a ``priority personal finance strategy''.
"We've found referrals and inquiries for income protection insurance have grown significantly since the economic conditions have tightened,'' she said.
"Some people have seen their other assets fall in value in recent months and want to build their financial back-ups''.
TRAUMA
AMP financial planner Dominic Pepicelli said trauma cover provided a lump sum payment for people diagnosed with a specified condition.
"The types of conditions that trauma cover will cover people for include heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancer, dementia, stroke or paralysis,'' he said.
"Trauma cover is designed to help cover increased medical costs and living expenses, providing some financial security during the important recovery process.''
Mr Menelaou said trauma insurance could allow for a relatively stress-free recovery and ``provide funds at a time when you want to spend all your energy on recovering and not on worrying about medical bills and household expenses''.
TRAVEL
This can be surprisingly cheap and easy to obtain, and can cover a range of holiday problems including hospitalisation, lost luggage or travel documents and evacuation.
The director of COTA Insurance and Membership services, Ian Yates, said travel insurance was not just for overseas holidays.
"Lost luggage, cancelled flights and damage to rental cars don't just happen overseas, and it is just as inconvenient to be on the other side of Australia without a change of clothes as in a foreign country,'' he said. Domestic travel insurance is often much cheaper because potential medical costs are not included.
"It can cost hundreds of thousands of dollars to treat someone who becomes ill overseas, particularly if they have to be evacuated back to Australia,'' Mr Yates said.
"Inside Australia, everyone is covered by Medicare or have their own health insurance,'' he said.
LANDLORDS
Landlord's insurance is important for people who own investment properties. Those who do not have the right cover could be risking thousands.
Terri Scheer Insurance general manager insurance services Carolyn Majda said damage done to rental properties was on the increase.
"The most common risks for a landlord are malicious damage by a tenant, theft, accidental damage, legal liability and loss of rental income,'' she said.
"Landlords should choose an insurance policy that has been specifically designed to address these needs.''
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