Author: Shaun Frost, CEO, TAG Personal Insurance
Most Australians are quick to protect their homes, cars, and businesses, but often forget to protect the most important asset of all: themselves. Yet the reality is clear: many families are financially vulnerable if the unexpected happens.
According to the Financial Services Council, over 70% of Australians are underinsured for life and disability cover, leaving loved ones financially vulnerable. In 2024, cancer was the leading cause of death in Australia. And in 2023, life insurers received more than 3,400 death claims in the individual advised category, with an average sum insured of $533,000 (source: APRA).
Together, these statistics demonstrate the real, life-changing value of having adequate cover when it matters most.
Insurance isn’t just about policies – it’s about peace of mind. It’s knowing that no matter what life throws your way, your family, lifestyle, and financial future are protected.
Types of Personal Insurance
Here’s a straightforward guide to the main types of personal insurance and why they matter at different life stages:
Life Insurance – Protecting Your Family
Life insurance provides a lump sum to your loved ones if something happens to you. Some policies also allow early access in the case of terminal illness.
Why it matters for you:
- Gives your family financial security and peace of mind.
- Helps cover mortgages, debts, and future expenses.
- Can help prevent your family from having to sell the family home during an already difficult time
- Especially important if you have dependants or significant financial commitments.
Total & Permanent Disability (TPD) – Protecting Against Life-Altering Events
TPD cover pays a lump sum if illness or injury prevents you from ever returning to work.
Why it matters for you:
- Provides long-term financial security if you’re permanently unable to work.
- Can cover debt repayment, medical care, or living expenses.
- Most relevant for working-age Australians who rely on income from employment.
Trauma Insurance – Supporting You Through Serious Illness
Trauma insurance pays a lump sum if you’re diagnosed with a serious illness, like cancer, heart attack, stroke, or a range of other conditions.
Why it matters for you:
- Helps manage medical costs, lifestyle changes, or debt while you focus on recovery.
- Gives you financial breathing space during a challenging time.
- Useful at any age, particularly when you have family or business responsibilities.
Income Protection – Covering Your Everyday Life
Income protection replaces a portion of your income if you can’t work due to illness or injury. Premiums are generally tax-deductible, making this a practical choice for everyday life.
Why it matters for you:
- Ensures you can continue paying bills and meeting financial commitments.
- Crucial for those with mortgages, school fees, or ongoing expenses.
- Relevant for most working Australians, no matter the career stage.
Insurance That Grows With You
The right insurance cover evolves as life circumstances change. In the early career stage, when there are typically no dependants, income protection is often not the top priority. As people move into the family and mortgage stage, life and trauma insurance become essential to safeguard dependants and manage financial commitments.
Approaching pre-retirement, the focus shifts to maintaining financial independence and protecting accumulated wealth. In retirement, insurance needs may reduce, but considerations around legacy and estate planning remain important.
How TAG Can Help
Take control of your personal insurance with confidence and know that your plans won’t be derailed by the unexpected.
At TAG Personal Insurance, we help you tailor the right mix of personal insurance for your stage of life, financial commitments, and goals. By working with experienced advisors, we make sure you have the right insurance focused around your goals.
Take the first step in protecting your future and your family’s wellbeing. Contact TAG today via email or call us on 03 9886 0800, for personalised guidance and strategies designed to give you peace of mind.
Shaun Frost Authorised Representative 235994 and Shaun Frost Financial Services Pty Ltd Corporate Authorised Rep 235586, Trading as Financial Coaching Australia are Authorised Representatives of Lifestyle Asset Management – AFSL 288421 | ABN 53 113 067 968, in their capacity to provide Life & Disability Insurance advice. © 2025