Which Insurances Are Important to Have

• 

  apsilon on 15/01/2021 - 13:56

  +16

  The essential ones are the ones you couldn't afford to pay out of pocket if something were to happen.

  • 

    cloudy on 15/01/2021 - 16:40

    +1

    This is exactly it.its not about what It is. It’s about the cost in the event something happens and if one can afford it without insurance.

    For example we might not all have a car accident, we not not even drive, but we can all have health problems, but there’s Medicare but is that good enough?
    Or we might all die, but maybe we just want to be cremated and that’s it. So it’s all about choice and circumstance.

    • 

      Scrooge McDuck on 16/01/2021 - 02:05

      +1

      If you make responsible decisions, have enough wealth in liquid assets, and aren't prone to anxiety about adverse events, all types of insurance are a rip off. You'd be subsidising all those policy holders who are less responsible, plus contributing to the profits of the insurance company.

      • 

        apsilon on 16/01/2021 - 06:11

        Having enough wealth in liquid assets to replace a Sydney home and contents lost in a fire and for it to not impact your lifestyle is something most people can only dream of.

        • 

          Scrooge McDuck on 16/01/2021 - 08:08

          @apsilon: 🤷‍♂️

          • 

            Scrooge McDuck on 16/01/2021 - 08:27

            @Scrooge McDuck: In all seriousness, that's the one which came to mind as having the most utility. But I didn't concede on it as an exception since I don't regard home ownership in Australia as a responsible investment. It's like having the majority of your capital in one stock with leverage, in a lot of mortgage cases, which could very well be in a bubble which is about to burst. Much better to rent a home and diversify the investment of one's wealth. I can see the appeal of home ownership if one has a family for stability, but as a permanent bachelor, having a family is another can of worms with respect to responsible decision making…

• 

  Blitzfx on 15/01/2021 - 13:57

  +2

  If everyone had Vehicle - Third Party Property Insurance, there'd be a lot less to worry about

• 

  Baysew on 15/01/2021 - 14:03

  +5

  Can we only vote to have one insurance?

  • 

    SF3 on 15/01/2021 - 14:19

    voting system on OzB doesn't allow multiple choices

    • 

      Hansi on 16/01/2021 - 08:01

      That's good to know, kind of flaws the whole list I put up for comparison.

• 

  hodgeyhodgey on 15/01/2021 - 14:19

  Income protection

  • 

    Headless on 15/01/2021 - 15:01

    I wonder if insurance companies had an anti-covid (or similar) clause and refused to pay out?

    I read that it takes about 3 months to pay out, and even then its ~50% of your income

    • 

      dirtybigbjelke on 15/01/2021 - 16:33

      You can choose your level of cover and when it kicks in. All make a difference to the cost. My employers pays for a policy that kicks in after 3 months and last for another 19 months. I have a second policy that kicks in after the 19 months till retirement. The cost of Income Protection is also tax deductible.

    • 

      What is rrp on 15/01/2021 - 16:48

      the PDS would include something about a 'pandemic'.
      You can usually choose to wait 30 or 60 days to receive payment and also up to 2 years or till you're age 65, to keep getting the payments.
      Usually you can choose to go up to 75% of salary.

• 

  Seraphin7 on 15/01/2021 - 14:23

  +2

  I would argue vehicle third party property and home (building) insurance are deadset non-negotiables … assuming you own a vehicle and a property.

  In both of the above instances, your potential liability is easily in the hundreds of thousands.

  You then look at the rest and there are arguments for each of them depending on your circumstances.

  • 

    macrocephalic on 15/01/2021 - 14:28

    +3

    Pro-tip: travel insurance is cheaper than rental car insurance excess reduction (from the rental car agency). If you ever rent a car, get travel insurance for it.

    • 

      Hansi on 16/01/2021 - 08:03

      +1

      Many credit cards also include rental car insurance (it'd worth to check the excess again however).

• 

  Hithere on 15/01/2021 - 14:57

  +1

  Comprehensive Insurance is not important to have until it's needed, hence the number of drivers without insurance who spam forums after being in an accident.

• 

  cloudy on 15/01/2021 - 16:42

  +1

  Home can be split into home and contents.

  Also, I know people who have phone and bike insurance. So maybe you want to add them too to the list.

• 

  What is rrp on 15/01/2021 - 16:45

  Car. Home. and also Life.
  If you have a partner and especially if you have any kids, you need life insurance.
  Unless you have handsome sums saved up or have zero debts.

  edit: also disability and also income protection, for that matter.

• 

  hasher22 on 15/01/2021 - 22:02

  Health and Car insurance are the most important ones for me then contents, it would be home too if I could afford a home but oh well.

• 

  tallkid123 on 15/01/2021 - 23:16

  I have the standard comprehensive insurance and private health insurance.
  My wife has maxed out private health insurance and life insurance as she fractured her spine a few years back and has pre-existing health issues.
  As investors, we also have mortgage protection insurance and landlord and building insurances.
  We've opted not for pet insurance. It's too specific. I can't predict what part of my dogs' bodies will suffer injury and through what cause.
  I had income protection insurance as a temp bonus policy and actually made a claim through it due to involuntary redundancy. But I didn't renew it.