Mythbusting insurance

Mythbusting insurance

Most people wouldn’t dream of taking their car on the road without car insurance, or living in a house without home and contents insurance. But when it comes to taking up insurance to protect their life or income, most Australians act indifferently.

Common reasons for not taking up insurance are a lack of knowledge, a belief that insurance is too expensive and the age-old ‘it won’t happen to me’ mentality. If this sounds like you, it’s worth taking a moment to consider your insurance needs. The peace of mind this will give you is well worth the effort.

Myth #1: It’s too complicated

If you’re new to insurance, it may seem complicated. There are all sorts of different products, acronyms and official-sounding terms. To help make things clearer below is a snapshot of the typical types of insurance available to you.

Type of cover

Also known as

What is it?


Life or Term life 

Death cover provides your family with financial security if you die. If you die, your insured benefit may be paid to your beneficiaries.

Total & permanent disablement


Total & permanent disablement cover provides you and your family with financial security by paying a lump sum if you become totally and permanently disabled and are unable to ever work.

Income protection

Salary continuance

Income protection cover provides you with a regular monthly income if you are unable to work and earn your income.

Critical illness


Critical illness provides you and your family with financial security if you are diagnosed with a life-threatening illness like cancer, heart attack or stroke. Unlike TPD, there is no need to prove disablement, only that you have suffered one of the specified medical conditions.


Myth #2: It’s too expensive

Value is relative and depends on what is important to you. But when you have dependants, it’s hard to argue that the right insurance cover is anything but money well-spent. The ability to sleep better at night knowing that everything is taken care of is priceless.

Besides, insurance doesn’t have to be exorbitant. By finding the cover that best suits your needs, you should be able to structure your insurance cover so that your premiums are well within reach.

Myth #3: It won’t happen to me

You might think ‘I don’t need to worry, I’m fit and healthy’ but with the incidence of life threatening or debilitating health conditions on the rise, you may think again after considering the following leading causes of death (and disability) in Australia.


Heart disease[1]




Affects 1.4 million Australians and is the leading cause of death in Australia

There are 50,000 strokes in Australia each year – 65% result in disability

Dementia is already the single greatest cause of disability of Australians aged 65 years or older


1 in 2 men and 1 in 3 women will be diagnosed with cancer by the age of 85



Get some advice

If the thought of understanding insurance and what’s right for you seems like an insurmountable obstacle then leave it to the experts. The cost of insurance doesn’t need to stop you in your tracks and you’re always better off knowing more. Speak to us to get the advice you need to protect yourself – and your family.


[1] Heart Foundation

[2] Stroke Foundation

[3] Alzheimer’s Australia