The 4 Growth Areas for Insurance in Australia That Retirees Should Invest Into

Some people don’t understand that getting insurance at an early age is vital to living a stress-free life. Especially, when people retire, they need to have a backup plan that will help their family when they are gone.

There are several types of insurance policies that you might need at one point in your life. You never know, in the next few hours, you might be in an accident. There are two scenarios here: You either die on the spot, or get so severely injured that you might not be able to live life the way you once did. Following are four insurance policies that offer a lot of benefits to the insured person:

1.     Car Insurance

According to a report by Australian Government’s Department of Infrastructure and Regional Development, in September 2017, there were 100 car accidents that lead to road deaths. Comparing it to the last five years, this figure is 5% higher. Since car insurance is solely concerned with the automobile, therefore, it provides more coverage for car damage than the medical bills. As long as you have a car, this insurance policy is a must. From 2014 to 2015, the demand for car insurance was at 28%, a figure higher than any other insurance type.

2.     Life Insurance

Life insurance policies are predicted to go through major changes in the future. This means that obtaining it at a later date will be quite difficult. There are certain requirements in order to become eligible for life insurance. There are two major types of life insurance policies:

  1. Term Life Insurance
  2. Total & Permanent Disability Insurance (TPD)

The former offers the family of the deceased, a lump sum of money after a certain period of time, whereas the latter offers the injured a lump sum of money in case the person can no longer return to work due to a permanent disability. Life insurance is predicted to grow by 4.5% in the next few years. There are many companies such as Freedom Insurance that provide different types of life insurance policies.

3.     Home Insurance

Home insurance demand is also at an all time high in Australia. As the real estate market continues to grow, so does the need for home insurance. This insurance type covers losses and damages to the property. People can also get coverage for accidents that might occur on the property. From 2014 to 2015, the demand for home insurance was around 23%.

4.     General Insurance

While general insurance did see a small decline in 2015, it is predicted that it will reach its all time high by 2025. General insurance provides payments when a person experiences some financial loss.

Some insurance policies such as life insurance require a medical record whereas insurance policies such as auto insurance do not require a medical record. This is why it is important to get the right coverage at the right time, so that you don’t regret the delay later in life.

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