The contribution life insurance and disability insurance makes to society is twofold. It will assist you financially if you should suffer a serious illness or injury as well as help your loved ones financially should you die.  Secondly, it also lowers the cost to the taxpayer in having to support families of people who have become seriously ill, injured or who have died. Without insurance you or your dependants would have to delve into the family savings in order to survive financially if you could no longer cover the day to day cost of living. If insufficient savings were available it would mean selling the family home or having to rely on government welfare payments. Payments that are not far removed from the poverty line.

Insurance Won’t Stop the Unthinkable From Happening but it will Ease the Financial Pain

Insurance can’t stop physically devastating things from occurring to you but it can plug any financial loss that could occur as a result of such a happening. Crippling accidents, illnesses and deaths of a breadwinner have placed many formally financially secure families in dire financial circumstances only to spend years of suffering in near poverty simply because they were either under-insured or had no insurance cover at all.

Can you Afford Not to be Insured

If you have any doubts at all about whether you are adequately insured or not you only have to ask yourself the following questions; Could your family continue living the same life as they enjoy today if you weren’t able to contribute any more? No matter if you are wealthy or not, even more so if you are not considered wealthy, you will need insurance to pay for things that you can no longer do yourself should you become incapacitated, or happen to die, and leave the burden for your loved ones to carry alone.

Insurance need not cost too much if you plan it the right way. Especially if you keep in mind the cost to your family members should something happen to you and you were not sufficiently covered. In fact it is possible to get quite good life and disability cover of around three quarters of a million dollars for only $4.50 a day if you were aged 45 years and a non smoker.

The Types of Insurance you can Obtain For Little Cost

Life Insurance and disability insurance premium costs are based on many variables, the main being your age and health at the time of taking the cover out therefore you will have to consult with your financial advisor, insurance agent or insurance company itself to determine the actual cost you will have to pay. The following list will give you a good idea what type of cover you can obtain for a moderate outlay:

• Term life insurance will pay a lump sum should you die or suffer a terminal illness. The cost of this insurance will depend on how long you need the cover for and your age when you take it out but you could expect to get around $750,000 cover for about $2.50 a day.

• Total and Permanent Disablement (TPD) insurance also pays a lump sum amount but you don’t have to die first before it is paid to your beneficiaries. You will receive the insured amount while you are still living if your prognosis is that you will be unlikely to ever work again because of your permanent disablement. A cover such as this would cost you around $4.40 a day for an amount of around $750,000 should you die or become permanently disabled.

• Living Insurance is another name for trauma or critical illness insurance that pays a lump sum amount if you suffer certain medical conditions. These conditions will be specifically laid out in the policy document and besides other ailments will cover you for cancer, loss of a limb or limbs, or a heart condition. For most people a cover of about $500,000 would cost in the area of $6.00 a day.

• Income Protection Insurance will pay you up to 75 percent of your previous taxable income. It will also pay your full superannuation contributions while you remain unable to carry out your normal occupation because of you suffering an injury or illness. With this type of insurance you can access up to $3,000 a month for a premium payment of only $1.30 a day. To make things even better you could also find your premium payments are tax deductible.

• Business Overheads Insurance is particularly valuable if you are a small business owner and are not able to attend to your business because of an injury or illness. It pays out an amount of $3,000 a month for a premium of just $1.00 a day. Once again you could find this premium tax deductible also.

Life insurance and disability insurance are an important part of everybody’s life. Sure, you may be able to get through life without having life or disability insurance but it is a gamble. The odds of you making it are not good. Is the welfare of your family really worth the risk? By taking out adequate insurance you won’t be able to reduce the risk but you will reduce the financial impact such a happening will have on your family, yourself and your lifestyle. Your decision will ultimately depend on whether you consider the risk worth taking, all for the sake of a few dollars a day.