Managing risk: creating a personal insurance plan

Make an insurance plan
Determining risk and your need for personal insurance

When faced with a potential risk in your life, such as an accident or serious illness that could affect your ability to work, you might start by asking yourself how likely it is to occur. Your next question might be, “How would this impact me and my loved ones if it actually happened?”

Depending on how likely you think a particular risk is, you can make a choice about how to deal with it. Of course, making a decision on the fly or showing complete disregard for any danger is usually a bad idea.

Whilst hasty decisions might not always prove disastrous – and your risk for some accidents or illnesses might be statistically low – on the off-chance that you do experience a life-changing event, it’s always better to be prepared. That’s where personal insurance comes in.

Personal insurance plan options

Establishing a comprehensive personal insurance plan is an important part of an overall investment and risk management strategy. In essence, it’s your ‘Plan B’ in the event that you or your spouse unexpectedly die or become disabled or permanently injured.

Each type of personal insurance serves its own purpose, but collectively they provide overall protection from any life event. There are many options for personal insurance, including:

  • Life insurance – provides a lump sum benefit payment to designated beneficiaries in the event that you die unexpectedly
  • Total and permanent disability insurance – provides a lump sum benefit payment if you become totally and permanently disabled due to illness or injury, and are therefore unable to work
  • Income protection insurance – provides monthly benefit payments for a period of time if you become ill or injured and are unable to work
  • Trauma insurance – provides a lump sum benefit payment if you suffer a specified event, such as a heart attack, stroke or cancer.

There are many different products and policies available on the market, offering varying degrees of protection. Therefore, when creating a comprehensive personal insurance plan, it’s not a ‘one size fits all’ approach.

If you’re looking for help, our financial planning experts at Accru Harris Orchard can assist you in creating an insurance plan that’s not only good quality but is customised to fit your personal circumstances and financial goals. Contact the professionals at Accru Harris Orchard today to learn more about your options.

Disclaimer: The information contained in this article is based on information believed to be accurate and reliable at the time of publication. To the extent permissible by law, neither we nor any of our related entities, employees, or directors gives any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of information contained in this blog. This information is of a general nature only. It is not intended as personal advice and does not take into account the particular investment objectives, financial situation and needs of a particular investor. Before making an investment decision you should speak with your financial planner to assess whether the advice is appropriate to your particular investment objectives, financial situation and needs.

About the Author

Sam Facy
Sam was always good with numbers: he even won the inaugural accounting prize at school. Adelaide being Adelaide, his father knew someone, which meant a part-time accounting job at an early age.

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