How Much Does Insurance Cost?

The answer of course is personal, as it depends on what type and how much cover you decide you need. For interest I added up my main insurance costs to see how much I'm paying:

Cover $     Policy Type       Premium /mo
$400,000    Death or TPD       $89.84
 $62,340 pa Loss of Income'    $59.81''
            Private Hospital  $151.45'''
            Car CTP            $27.58
$340,000    House & Contents   $82.93
                              -------
            TOTAL COST /month $411.61

Notes:
' 2 year waiting period applies, paid until age 65
'' Premium is tax deductible
''' After government premium discount has been applied

The recent tree fall that could easily have destroyed our rental property shows the value of insurance, but I wish it was possible to buy insurance "direct" from the insurer and get the commisions rebated - most insurance policy premiums pay a large chunk of the first years premium and a considerable trailing commision to the insurance broker who "sold" you the policy.

Copyright Enough Wealth 2007