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The Different Types of Personal Insurance and Why You Need Them

By 26/10/2021 April 26th, 2022 No Comments

What Is Personal Insurance?

Personal insurance is the umbrella term for a number of different types of insurance products that provide cover for you as an individual. Each product seeks to provide different safeguards in the apprehension of potentially adverse life events. Such an event can include but is not limited to, injury, disability, loss of income, or death. These policies provide financial support to either you as the individual or your nominated beneficiaries, such as family. Each insurance provider will have an associated waiting period for their policies, as well as other stipulations and exclusions, so be sure to always read the individual product disclosure statement before choosing the best product for your financial situation.

What Are the Different Types of Personal Insurance in Australia?

Total & Permanent Disability Insurance

These policies provide insurance cover in the event of permanent disability, or terminal illness, that either prevents an individual from working to the same capacity, or ceases their ability to work at all. This is distinct from temporary injury, which would need to be covered under a separate trauma insurance policy (see below). If a TPD insurance claim is approved, the payout will usually take the form of a lump sum to the policy holder. 

Trauma Insurance

An injury, or critical illness, may not be so severe that it causes permanent disability, however, it may still drastically affect an individual’s ability to cover their essential costs. Trauma, or recovery, insurance products offer coverage for the policy holder as they rehabilitate, and receive the necessary medical treatment for their recuperation. An approved claim also usually takes the form of a lump sum to the policy holder, as compared to income insurance claims (see below), which are paid over time.

Income Insurance

Income protection insurance policies provide a percentage of the policy holder’s lost income over time, if they’re rendered unable to work to the same capacity due to a level of disability. Many Australian superannuation fund management providers already offer income protection insurance products to their clients, so it is worth checking if you are already covered in some capacity.

Life Insurance

In the event of the policy holder passing away, life insurance policies (also known as life cover) provide financial support to their nominated beneficiaries. Such beneficiaries are often family members, or loved ones, of the deceased, however they can be any nominated individual/s. There is an important distinction between life insurance products and accidental death insurance products. The latter requires the cause of death to be proven as an accident, whereas broader life insurance policies do not have such requirements. 

Why Should I Consider Personal Insurance?

The old expression is it’s better to have something and not need it, than need it and not have it. In today’s high-cost domestic environment, personal insurance products are often an expense too far for Australian consumers. However, this leaves them potentially exposed in some of the most vulnerable situations they might encounter throughout life.

Recent research conducted by Rice Warner found that whilst Australian consumers were accounting for 92% of their life insurance needs, thanks in large part to their super fund provider, there was a significant underinsurance gap with regards to Total & Permanent Disability. Based upon their estimation of the basic insurance necessities, for the average citizen, Australians are only accounting for a mere 29% of TPD insurance needs. 

The need for personal insurance products most certainly grows in tandem with any financial dependency on you as an individual. If others, such as family members or loved ones, look to you to cover their essential costs then any personal instability, such as unforeseen medical expenses, can have far-reaching, and devastating, consequences.

These insurances are also even more critical for business owners, as any type of disruption to your day-to-day business operations could be critical to long term financial success. The margins can be thin as business owners look to scale up appropriately, however if they overlook insurance premiums then they are perpetually at risk of a bad day creating a financial burden that they cannot overcome.

CASE STUDY

We recently learned of a client whose life insurance policy had been left unchanged for approximately five years, with the coverage amounting to a payout of up to $1 million in the event of their passing. At the time of purchase, that policy represented enough coverage to service their outstanding debts.

However, in the five year intermittent period since taking up that policy their debt had increased to a net total of $4.5 million, as a result of new housing loans – both Owner Occupier and Investment. The client in question did not realise that their life insurance policy was now outdated. Had their policy not changed their family, or beneficiaries, would have had extremely limited capabilities to service this outstanding debt.

We were able to alert our client to this significant coverage gap, and they updated their policy in order to ensure that the payout provided allows for their beneficiaries to be able to cover all necessary expenditure. It is crucial to ensure not only that you have the appropriate policy types in place, but also that the coverage is updated over time as you take on any additional liabilities or expenses.

At Equil Advisory, we’ve used our network and partners to assist many of our clients in being able to locate and engage with the most appropriate insurance products, and businesses, for their needs. If you’d like to find out more, call our team of experts today.

Albert Tan

Business Services Accountant

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How did you end up at Equil Advisory?
I was looking for a new place to clear my throat and break the office silence.

When did you start at Equil Advisory?
When I was assured that there would be another Malaysian member of the team.

What do you do at Equil Advisory?
Play hide-and-seek in the bathroom.

What do you do when you aren’t at work?
Go to the gym.

What is something not everybody knows about you?
I don’t know how to pronounce geography properly.

If you had to apply for a reality TV show what would it be?
Survivor.

What would your last meal be?
Macaroni and cheese with milk.

Cats or dogs?
Neither.

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Everyone I knew had caught on to my long stories, decided to go find new people who had never heard them before.

When did you start at Equil Advisory?
When I heard they were having a massive Christmas party.

What do you do at Equil Advisory?
Go off on tangents and ask people if they’re good.

What do you do when you aren’t at work?
I would be out hunting ghosts or singing while playing the guitar.

What is something not everybody knows about you?
No drop of rain has ever landed on my head.

If you had to apply for a reality TV show what would it be?
Masterchef Australia.

What would your last meal be?
Double beef burger and a steak on the side.

Cats or dogs?
Cats and dogs are the most popular pets in the world. Cats are more independent and are generally cheaper and less demanding pets. Dogs are loyal and obedient but require more attention and exercise, including regular walks. But what I actually really prefer, I guess it actually depends… -character limit reached-

Albert Tan

Business Services Accountant

Email Me

How did you end up at Equil Advisory?
I have always wanted to be an accountant due to the influence of my family as most of them are accountants. I joined Equil Advisory as it offered me a different opportunity to work on compared to other accounting firms as well as allowing me to develop different skills.

When did you start at Equil Advisory?
28th February 2022.

What do you do at Equil Advisory?
My role at Equil Advisory includes tax compliance work and assisting client in their day-to-day business with EA’s outsourced CFO function.

What do you do when you aren’t at work?
Spending time with my wife, talking to my family or reading light novels.

What is something not everybody knows about you?
Love spicy food even though I can’t handle it at all.

If you had to apply for a reality TV show what would it be?
Voice actor in any cartoon shows.

What would your last meal be?
Roti Telur Bwang.

Cats or dogs?
Love cats and dogs equally.

Pragti Sharma

Administrative Assistant

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How did you end up at Equil Advisory?
I wasn’t allowed to give free food to my friends at Oporto anymore.

When did you start at Equil Advisory?
When I completed shopping for my professional wardrobe.

What do you do at Equil Advisory?
Listen intently to people’s conversations and mimic them during our lunch breaks.

What do you do when you aren’t at work?
Finesse my Australian accent.

What is something not everybody knows about you?
South India is my favourite part of India.

If you had to apply for a reality TV show what would it be?
Fear Factor.

What would your last meal be?
Steamed dumplings.

Cats or dogs?
Both!

Pragti Sharma

Administrative Assistant

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How did you end up at Equil Advisory?
When I was a child, dealing in numbers was never a problem! But still, I passed mathematics on the verge.

Gradually, I realized that numbers are in my favour and so are the associated calculations. As a result, I pursued Accounting with Finance, which helped me develop an interest in accounting systems. Further, securing a career in accounting lead me to make my way to EQUIL.

This is my first professional job, and I am too excited to be a part of the team.

When did you start at Equil Advisory?
It’s my second week at Equil! I started on 10th February 2022.

What do you do at Equil Advisory?
I have started as an administrative assistant, so my work includes responding to the client emails and undertake day-to-day admin tasks.

What do you do when you aren’t at work?
Most of my time goes out at talking to my friends and family, back home in India. If, I still have more to go, Netflix is my best thing.

What is something not everybody knows about you?
I am only serious for who I want to be and what I want to achieve.
On the other hand, those who think I am serious, shouldn’t know, the time I tried the 30-day weight lost diet, I lost another 30 days!
I can never stick to a diet!!!!

If you had to apply for a reality TV show what would it be?
Fear factor - Khatron ke Khiladi.

What would your last meal be?
Anything and everything that I get hand-cooked by my Mommie.

Cats or dogs?
Dogs, only to watch them play from a distance.

Sabrina Truong

Business Services Accountant

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How did you end up at Equil Advisory?
I wanted to see how people who eat unhealthy actually live.

When did you start at Equil Advisory?
Just as the second lockdown was about to begin, so I didn’t have to talk to people in person.

What do you do at Equil Advisory?
Eat raw veggies and perfect my American accent.

What do you do when you aren’t at work?
Driving around Sydney for the best fast food places.

What is something not everybody knows about you?
I eat banana bread with chopsticks.

If you had to apply for a reality TV show what would it be?
Man vs Food.

What would your last meal be?
Deep fried chicken and chips with extra chicken salt.

Cats or dogs?
Cats!

Sabrina Truong

Business Services Accountant

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How did you end up at Equil Advisory?
My dad is a bookkeeper, so it was natural for me to choose accounting as a degree. Accounting allows me to help others grow their businesses and achieve their goals, which is something I am passionate about. I joined Equil Advisory because it is not like your typical accounting firm. I also wanted to be part of a team that is supportive and provides the opportunity for me to develop and grow my skills.

When did you start at Equil Advisory?
July 2021.

What do you do at Equil Advisory?
A large part of my role is focused on tax compliance and the other part is dedicated to building client relationships so that I can better help our clients with EA’s outsourced CFO function.

What do you do when you aren’t at work?
You would find me watching Netflix, working out, or hanging out with friends/family.

What is something not everybody knows about you?
I am learning Korean.

If you had to apply for a reality TV show what would it be?
Super Trio Game Master.

What would your last meal be?
Pepperoni Pizza.

Cats or dogs?
Dogs!

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Growing up I was exposed to the business environment, so I always wondered about the ins and outs of the business, how it runs and how to be financially sound. This piqued my interest on business studies and further after that into accounting. I wanted to broaden my horizons, knowledge and have a sound work life balance which led me to Equil Advisory.

When did you start at Equil Advisory?
17th December 2021.

What do you do at Equil Advisory?
At Equil Advisory, we are exposed a range of work that include tax compliance, bookkeeping, tax advice, liaising with the clients and outsourced CFO functions. My work is predominately occupied by tax compliance and outsourced CFO function.

What do you do when you aren’t at work?
I’m mostly out with my cousins or friends. Binge watching series or may be hop online to play some games.

What is something not everybody knows about you?
I can speak four different languages and I love gaming.

If you had to apply for a reality TV show what would it be?
The Voice.

What would your last meal be?
Mo Mo.

Cats or dogs?
Dogs.

June Wong

Business Services Senior

Email Me Linkedin

How did you end up at Equil Advisory?
My sister got tired of me working from home and hence decided to join EA.

When did you start at Equil Advisory?
Just as the first lockdown was lifted.

What do you do at Equil Advisory?
Eat Coco Pops and telling people what I am honestly thinking.

What do you do when you aren’t at work?
Planning my next EA Team workout session.

What is something not everybody knows about you?
I am scared to sleep alone.

If you had to apply for a reality TV show what would it be?
Survivor – because I wouldn’t last a day.

What would your last meal be?
I can’t decide between all the YUM-MEE animals of the world.

Cats or dogs?
Porcupine.

June Wong

Business Services Senior

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How did you end up at Equil Advisory?
I realised that a lot of people that work in chartered firms are not the happiest. Thus, I was looking for a place where I am happy to go to work every day. I think I found it at Equil.

When did you start at Equil Advisory?
May 2021.

What do you do at Equil Advisory?
Connecting with clients and providing them with all the support they need so they can be at ease and have confidence that they are well looked after.

What do you do when you aren’t at work?
Watching dramas at home while lying on bed.

What is something not everybody knows about you?
I actually thought of becoming an IT person and did a couple of months of IT degree before realising that I am not tech-savvy at all.

If you had to apply for a reality TV show what would it be?
Amazing Race.

What would your last meal be?
Hotpot with lots of veges, mushrooms and tofu!

Cats or dogs?
Neither.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Being second fiddle to a Youtube Vlog star wasn’t cutting it.

When did you start at Equil Advisory?
I needed an excuse to not go to the gym.

What do you do at Equil Advisory?
Write short stories and make sense.

What do you do when you aren’t at work?
Personal cashflow using resources from EA.

What is something not everybody knows about you?
My hair feels like your standard carpet.

If you had to apply for a reality TV show what would it be?
House husbands of North Sydney.

What would your last meal be?
Beef or seafood.

Cats or dogs?
Cows.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
I was looking for an opportunity to be able to grow in my accounting career. I have always had a passion for numbers, and I wanted to understand how to translate this technical knowledge into specific solutions for business growth and development. I found Equil Advisory to be a place that would nurture me into a fully-fledged Accountant by providing continuous guidance and support. I am able to learn from experienced professionals providing proactive advice and expertise to clients by creating intimate relationships. Additionally, I also wanted to be part of a diverse team from different backgrounds with different experiences.

When did you start at Equil Advisory?
September 2020.

What do you do at Equil Advisory?
My role at Equil Advisory includes a range of tax compliance work and performing our outsourced CFO function. I have been lucky to be part of the daily operations of clients’ business where we help ensure we are adding value to all aspects of their businesses and providing advice and guidance to help them grow.

What do you do when you aren’t at work?
Play basketball. watching basketball and religiously watching my favourite TV shows with the twitter community.

What is something not everybody knows about you?
I once played Football for my National team.

If you had to apply for a reality TV show what would it be?
Big Brother AU.

What would your last meal be?
Peanut butter rice, coleslaw and chicken stew.

Cats or dogs?
Dogs.