Need a Mortgage Broker for Risk Insurance?

You most likely have coverage for your house, vehicle, and phone. However, we sometimes forget the importance of personal risk insurance with our busy lives. But without Risk Insurance, you are putting yourself and your family at risk of financial hardship if the unfortunate happens.

At First Choice, we guarantee to find the best level of cover for our client’s personal insurance. From Life Insurance, Total & Permanent Disability Insurance, Income Protection Insurance, Business Insurance to Critical Illness or Trauma Insurance.

Please call First Choice Mortgage Brokers to discuss your Risk Insurance opportunities and for any assistance in accessing the Risk Insurance application processes.

Personal Risk Insurance FAQs

What is Personal Risk Insurance?

Investing in risk insurance requires sufficient self-preparation to identify areas where you and your family may be at the most risk of ownership losses or injury. At First Choice, our mortgage brokers can help you reduce your chances of personal risk by finding you the best type of insurance for your specific needs and wants.

Risk insurance ensures your finances are covered in the unlikely situation a catastrophic event happens to you and anyone else in your family. Once you pay your premium, you are protected, and are no longer at risk of severe financial consequences in unlikely events.

In the context of insurance, risk refers to the possibility of something harmful or unpredictable happening. This may include the loss, robbery, or damage to your property and possessions – as well as injuries or the diagnoses of a life-threatening illness.

Risk insurance encompasses various insurance types that covers a person’s life and ability to work; often, the types of personal insurance are offered as a combined package. Some of the different types of insurances relating to personal risk includes:

  • Life Insurance which provides a lump sum payment to your will’s chief beneficiary in the circumstance of premature death.
  • Total & Permanent Disability (TPD) Insurance which provides a lump sum payment if you become permanently disabled and are unable to work again.
  • Income Protection Insurance or salary continuance which provides a regular series of payments – usually equal to about 75% of your normal wage or salary – if you cannot work due to illness or injury.
  • Critical Illness or Trauma Insurance which provides a benefit payment if you are diagnosed with a specific illness that is noted in your policy like heart attack, stroke or cancer.

In addition to Personal Insurance, First Choice Mortgage Brokers also offers Business Insurance. Business Insurance provides cover for the losses of incomes if a business suffers a disaster, which can help pay the costs of property damage, lawsuits, lost business income and other losses. Businesses often purchase several coverages and merge them into one strategy to better protect themselves against a multitude of threats.

How are Risk Insurances Priced?

The cost of risk insurance varies depending on the type of insurance, the commodity, and the provider.

Each type of risk has a predetermined price associated with it; the price is based on the value that the insurers would have to pay out if a policyholder suffered from that risk. The insurance premium you are expected to pay depends on the price and the number of risks that are included in your risk insurance scheme.

In order to assign a monetary value to a risk, insurers measure the likelihood that the insured object or property will be missing, robbed, disabled, or ruined by mistake, how often this might happen, and how much it will cost to restore or replace it.

Insurers can calculate how much money they need to set up to fund premiums by pricing risk. The Australian Prudential Regulation Authority (APRA) has regulations in effect to guarantee that insurers have sufficient reserves to cover a claim.

Your premium can be paid by mail, in person, over the internet, or by direct debit. Furthermore, any of the insurance premiums may be covered by your superannuation. For more details, contact your financial advisor.

Why Do I Need Risk Insurance?

Life is full of threats and unpredictable incidents; nobody wants to be unprepared for when the unthinkable happens. So, it is essential to take precautionary measures to safeguard you and your family’s financial stability just in case something terrible happens.

How will your family cope financially if you died unexpectedly, were seriously injured, or were diagnosed with a substantial long-term illness?

Such stressful, unpredictable life experiences will have severe financial repercussions. Genuine repercussions happen daily to Australian families when traumatic events happen, from house repossessions and forcing children to move schools.

Hence, risk insurance is essential, but different covers are more important for different people. It can be challenging to decide which types of insurance you should invest in. As a general rule, you should insure most of your most important possessions, but the extras you choose will depend on your specific needs and circumstances.

This is why First Choice Mortgage Brokers are so helpful! As our expert consultants will assess your current life stage and future desires, in order to determine the best insurance plan for you which will add the most value to your life.

But your personal risk insurance is not finite; it’s a smart idea to review your insurance needs persistently. For example, you should reconsider your coverage if you buy an expensive asset such as a house, car, business, etc. Or, if your personal circumstances have changed, such as getting a new job, getting married, having a child, etc.

When your life changes, it’s important that you don’t delay the process of updating your insurance policies! The sooner you insure yourself, your family and your belongings, the safer you can feel in day-to-day life, knowing that in case of an unexpected or tragic event, all of your life is protected.

How Can Mortgage Brokers Help with Risk Insurance?

At First Choice, our mortgage brokers can help you reduce your chances of risk by finding you the best type of insurance for your specific needs and wants.

As part of our mortgage broking and financial planning programmes, we advise all of our customers to complete a thorough insurance analysis. We evaluate your existing financial obligations, lifestyle aspirations, and family preferences as part of this review to help you determine the amount of insurance coverage that’s right for you – and the possible repercussions of different insurance decisions you and your family make.

One of the most important things you can do to protect your financial stability is to ensure that you and your families are appropriately covered with the right risk insurance options.

Alike our home loans, at First Choice, we take time to get to know our clients and their financial situations personally in order to deliver the best thought-out plan for our risk insurance.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

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