[elementor-template id="418"]
  • Protection
Life Cover

The most common type of cover is life insurance (term life insurance). Life insurance will pay a lump sum to your estate or specific beneficiaries in the event of death or in some cases, terminal illness.

The advantage of life insurance is peace of mind that your death will minimise any financial hardship for your loved ones. Life insurance can be used to pay off debts, provide an income for dependents, cover funeral expenses and generally assist in maintaining your family’s lifestyle in the event of your death.

When looking at amounts of life cover things you might want to take into account are;

  • Clearing all debt
  • Providing a continuing income stream for your spouse or dependants
  • Providing for ongoing educational/childcare expenses for your children
  • Providing for funeral expense
Total & Permanent Disability

Total and Permanent Disablement (TPD) can prevent you from working and require expensive medical treatment and ongoing care.

TPD insurance aims to provide a lump sum if you suffer an illness or injury and you:

  • Are permanently unable to work again or
  • Are unable to care for yourself independently, or
  • Suffer significant and permanent cognitive impairment.
TPD insurance pays a lump sum which can be used to pay for medical expenses, ongoing care costs and to meet living expenses for you and your family.

The definition of TPD can vary and may include options for a range of occupations, including homemakers. Options that you can choose from include:

Any Occupation TPD: The benefit will be paid if you are unlikely to be engaged in any gainful business, profession or occupation to which you are reasonable suited by your education, training or experience. This definition is generally less expensive than an Own Occupation definition but for some people may be harder to meet.

Own Occupation TPD: The benefit will be paid if you are unlikely to ever be engaged in your own occupation. Own Occupation TPD provides a generous definition as it is specific to your occupation and is particularly suitable for specialist occupations. The premiums for this type of definition is more expensive than Any Occupation TPD.

You should discuss your circumstances with your financial planner.

When looking at amounts of TPD cover, things you might want to take into account are:
  • Clearing all debt
  • Providing for ongoing educational/childcare expenses for your children
  • Providing for incidental and medical expenses not covered by private health insurance
  • Living Expenses
Trauma

A serious illness or injury can prevent you from working for a period of time and may require expensive medical treatment.

Trauma insurance (also known as critical illness, crisis or recovery insurance) aims to provide a lump sum upon the diagnosis of a specified illness or injury such as life threatening cancer, stroke or heart attack.

There are usually between 35-45 different trauma/critical illness events covered and they are in the areas of heart conditions, stroke, cancer and neurological diseases.

When someone has suffered from a trauma/critical illness they generally may be able to go back to work within 2 to 3 years, therefore when looking at amounts of trauma/critical illness cover, things you might want to take into account are:

  • Providing for 2 to 3 years of debt maintenance
  • Providing for 2 to 3 years of educational/childcare expenses for your children
  • Providing for incidental and medical expenses not covered by private health insurance

This payment is made regardless of whether you are able to return to work, and is designed to relieve financial pressure at a time when you are under great stress.

Child Trauma insurance can be added to your policy to cover a seriously ill or injured child. This provides a lump sum to help you cover medical treatment and eases financial worry for parents who may need to take time off work to provide care.

Income Protection

This may be one of the most important types of cover as it protects one of your most important assets (your ability to generate an income).

Income Protection insurance aims to minimise the financial impact of sickness or injury by replacing income lost during a prolonged absence from work. A monthly benefit will assist you to meet living expenses and debt repayments.

Income Protection policies will usually pay a benefit up to 75% of your gross income (some policies may pay higher) after a waiting period. Payments continue for a set term or until you return to work. Generally, premiums for income protection are fully tax deductible.

Most companies will have a total disability benefit paying out the full monthly benefit in the event of total disability and also a partial disability. The definitions of total and partial disability are explained in detail within the recommended company’s product disclosure statement.

There are different waiting periods before a benefit is paid ranging from 14 days to 2 years and different benefit periods ranging from 2 years and up to age 65. Different waiting periods and benefit periods do have an effect on premiums and your adviser will be able to help you in choosing what is right for your current situation.

To enquire about Income Protection, click here