Insurance is a way to protect what you have if something goes wrong.
Some types of insurance protect your income, health or loved ones. Other types protect your home, car or belongings.
Not all insurance is right for everyone, and the cost of insurance can be very different across insurers. Think carefully about the type and level of insurance that suits your needs, and who you buy it from.
Types of insurance
-
Life insurance
Life insurance (sometimes called death cover) protects your loved ones if you die. Generally, it pays a lump sum amount. Life insurance can help replace lost income, pay off debts, and otherwise ease financial stress.
-
Total and Permanent Disability (TPD) insurance
TPD insurance can provide a safety net if illness or injury means you can’t work ever again. It can help to cover your long-term medical costs and living expenses, and pay off debts if you are unable to work.
-
Income protection insurance
Income protection insurance helps replace your income, or part of your income, while you recover from illness or injury. It can help you stay on top of living expenses and debt.
-
Trauma insurance
Trauma insurance pays a lump sum if you’re diagnosed with a serious illness or get injured. Payments are designed to help you cover medical costs and rehabilitation.
-
Health insurance
Health insurance helps manage the cost of private medical expenses not covered by Medicare. This includes treatment in a private hospital, and extras such as hearing aids, glasses and seeing the dentist.
-
Car insurance
Car insurance helps with repairing or replacing your car if it’s stolen, damaged or involved in an accident. It can also help cover the cost of other people’s property – as well as medical treatment for people injured in a road accident. There are different types of car insurance that cover very different things, so it’s important to know what type you have.
-
Home and contents insurance
Home and contents insurance helps with repairing or rebuilding your home, and replacing your belongings. It covers theft and damage from events like fire, storms and floods.
-
Travel insurance
Stay protected when you are away from home. Travel insurance can help cover the costs of things like cancellations, lost baggage, medical emergencies or delays.
-
Add-on insurance
Add-on insurance helps with the cost of repairing or replacing a product or service if it is damaged. It may be offered to you when you buy a product or service such as a car, mobile phone or an appliance. Check the fine print before buying it – you may be paying for something already covered under warranty or consumer law.
-
Funeral insurance
Think carefully before taking out funeral insurance. It promises to help with the cost of a funeral when you die, but premiums can end up costing more than the benefit. If you cancel your policy, there are often no refunds on premiums you’ve paid.