Sarah is a recently divorced 49 year old. She spends every day juggling the responsibilities of full-time work with the needs of her three teenagers, while also navigating a new, but fairly serious, relationship. What happens if she gets sick or injured? How does she best protect her family and her finances?

Insurance policies protect you and your family in the event of illness or injury.

Personal insurance policies such as Life, Total and Permanent Disability, Trauma and Income Protection only cover health-related events. They do not cover you in the case of redundancy or job loss.

Life, TPD, Trauma and IP Insurance – as a single woman, what do I need?

These four questions will help you understand your insurance needs:

Do I have children who depend on me?
Do I have debt that needs to be paid even if I am out of work or ill/injured?
Will I be able to receive any other form of income if I am no longer working? If yes, will that be enough to maintain my lifestyle?
Do I have enough saved to cover my potential medical bills?

I recently separated from my husband – how does that affect my personal insurance?

Review all your insurances when you and your partner decide to separate. It’s important to ensure that you and your children are covered, particularly in times of change and stress. Do not rely on your ex to provide for you and the kids in the event of illness or injury. You never know what is around the corner and people don’t always act the way you expect them to, no matter how well you know them.

‘Separation can dramatically change a woman’s personal and financial situation, which may have a flow-on effect on the appropriateness of her insurance.’[1]

Consider speaking to a financial advisor. They will work through your circumstances and help you to understand the best cover that is suitable to your needs but does not cost you an arm and a leg. For peace of mind and financial security, you need to know that your children will be covered if they are injured or fall ill. Private health cover might not be enough to cover all your expenses.

‘When separation occurs, a woman may need to be more self-dependent as there will be a greater reliance on just one income. If anything impacts on her income (for example, illness), this can cause hardship’.[2]

Protect yourself, your family, and your financial future by ensuring you are appropriately insured against the unexpected events of life!

I’m nearing retirement – how does this affect my insurance needs?

As women age, we need to reassess our insurance requirements.

‘If a woman is working past age 65 and relies on the income derived from that work, having insurance can be essential.’[3]

It is very common to have Life and TPD cover inside your superannuation policy, although often women are unaware of the amount of cover included in their super. Insurance premiums increase as you get older, so it is worthwhile reviewing your superannuation insurance cover:

Do you have any cover?
Do you need the cover? Is it right for you at this stage of your life?
How much does it cost?

By exploring your changing needs and costs of personal insurance, you can preserve your superannuation benefit and know that you are covered for the next stage in your life.

5 Steps to find the right Personal Insurance for you

Understand what type of insurances you need: https://moneysmart.gov.au/how-life-insurance-works
Review your super fund/s: Do any of them have inbuilt insurances? If yes, what are they? It is important to understand that TPD cover might not be paid if the claimant is not totally and permanently disabled and does not qualify a condition of release. You only have access to the benefit it you meet the permanent incapacity condition of release under superannuation law.
Check if your employer provides any cover as part of your employment contract
Review any existing policies: Are they still relevant, cost competitive, etc?
Seek help from a financial advice professional

The need for Life, TPD, IP and Trauma Insurance are often overlooked, particularly when women are focussed on other priorities during the period of separation and divorce. But it is worth taking the time to review and explore your needs as your circumstances change. As an independent, single woman, it is imperative to protect your personal, family and financial wellbeing.

If you’d like to discuss your personal insurance needs, please contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au

[1] Life insurance for women at different life stages – in ‘On Track’ by Kaplan Professional January 2020

[2] Kaplan Professional January 2020

[3] Kaplan Jan 2020