Insurance is an important way for you to manage the damage when things go wrong.

We all face risks and emergencies in our lives – whether it’s linked to our health, our jobs, or our personal belongings. Having insurance is a reliable way to manage these risks because it gives you financial peace of mind that you are protected.

We recommend that you talk to a financial adviser when it comes to taking out insurance to make sure that you get the right products for your needs.

The way insurance works is that you enter into a contract with an insurance company where you make regular payments (called premiums) to the insurer. If you make a claim, your insurer pays out for the loss that is covered under your policy.

There are two types of insurance

This insurance is usually taken out for specific or ‘short’ periods of time and may be temporary, based on your needs. This insurance usually covers possessions.

Examples: Hospital cash plan and short-term insurance. Click here to learn more.

This insurance covers life-changing events to help provide you with an income in the longer term. The insurance usually covers people.

Examples: Funeral policy, life insurance, credit life insurance cover, and accidental death insurance. Click here to learn more.

REMEMBER: When taking out an insurance policy, it is very important that you give the correct and honest information about yourself – this is called disclosure.

Want to learn more about insurance?

We have some helpful radio clips about this topic which talk about the different types of insurance products that are out there and help you understand which ones are right for: click here to listen to them.