Types of Personal Insurance

Insurance is never a luxury, it’s a necessity, a must have for peace of mind.

For years you may go without any claim, then one day the unexpected happens. No one can eliminate the devastating impact of serious illness or disablement, but if you have to deal with money problems as well, the situation can be much worse. Having money available when you need it most is what makes insurance so valuable.

There are four main types of insurances available to protect you and your loved ones against the impact of unforseen events such as loss of income, accidents, trauma, illness or death. You’re Action Wealth Adviser or its representative can help you decide what type of insurance best suits your needs from the products below.

For a free and no obligation general advice call Action Wealth on (+61) 1300 331 332 or click here to submit an enquiry. One phone call could save you thousands $$$$.

Income Protection Insurance:


Generally, this type of insurance can provide an income up to 75% of your salary, to age 65, if you’re unable to work due to illness or injury. This income could be used to pay for your daily living expenses such as rent, Mortgage repayments and child care costs as well as helping you to keep your family’s financial independence.

Critical Illness (Trauma) Insurance:

This type of insurance generally provides a lump sum payment, when you suffer a critical illness, such as a heart attack or cancer. You could use the payment to pay off any short-term debt such as credit card bills, car loan or mortgage repayments. It may also help you pay for any medical expenses as a result of a critical illness.

Total and Permanent Disability Insurance (TPD):

This type of insurance provides a lump sum payment. When you suffer a total and permanent disability and can no longer work. So you can relieve the family from the stress of the cost of daily living. It may also mean you can afford make changes to your home to help with your disability, or help you reduce debt and pay for any medical expenses as result of your disability.

Life Cover Insurance:

This type of insurance provides a lump sum payment for an amount you’re insured for when you die to help minimise the financial burden on your family. For example, it can be used to help pay off debt such as credit card bills, car loan or mortgage repayments that would be left for your family to take care of when you die.


Some types of insurance allow you to pay the premium automatically from your superannuation fund. This can be a tax effective option because it enables you to pay your premiums with pre-tax money. Using money that normally is inaccessible until you retire also means you don’t have to dip into your daily living budget. Please be mindful though that paying premiums from your super fund will affect the balance of your retirement nest egg.

For a free no obligation general advice call Action Wealth on (+61) 1300 331 332 or click here to submit an enquiry.

Advice Warning

The information on this web site / page is general information only and is subject to change. It does not take account of your individual objectives, financial situation or needs. You should consider, before making a financial decision or acting on this information to obtain financial advice specific to any financial investment or insurance decision. While care has been taken in the preparation of this website / page, no liability is accepted by Action Wealth Advisers, its related entities, agents, representatives and employees for any loss arising from reliance on this web site / page.