Life Insurance is looked at as a basic necessity in this day and age. This is sans any country or region as the whole world seems to be aligning itself to this economic tool. Hedging your risks for unforeseen financial loss is a done thing as people have their money put in various projects at the same time. This is true, as many young professionals invest in cars, home and other capital goods at the same time. When liquid money is not available, it is inevitable that one must look out for a sound life insurance package. It is also prudent to think of health and general insurance policies. The benefits may not be tangible when one takes this on, but at the time of any financial doom, this can come to your rescue.
Some of the life insurance policies in Australia have three kinds of covers in the packages. These are income protection cover, illness cover and of course life cover. This makes the policy very wholesome and one must check if all these points are covered before signing in on one. This maybe a little unique as many life insurance policies do not have these covers but make tall claims otherwise. The income protection cover and illness cover are more relevant and should be looked out for when choosing the correct policy for one.
Income protection cover refers to the cover made by the insurance company increase of loss of income or one is unable to work. This may have specific nuances from company to company but knowing that you have Income protection cover, would mean peace of mind and an income that will be able to pay for mortgages and bills, should one be unable to work.
In the same way illness cover will take care of the cover if one falls sick and is unable to take care of him or herself. This particular cover is very similar to health insurance, but may not be that comprehensive. One must compare this to a full health insurance cover and see the difference before taking this on.
However, life insurance should be a must in personal financial planning.