So you’re thinking about insurance? Congratulations! That’s a great first step towards financial protection for you and your family. The two main categories are Life Insurance, including Trauma Cover and Total and Permanent Disability Cover, and Income Protection Insurance.
Life, Trauma and TPD
Life insurance products protect you and your family from the financial consequences of sickness and injury. There are a range of different kinds of life insurance products available and it is important you choose the right products that suit your individual and unique needs:
How much do you need?
You and your family are unique. So are your insurance needs.
There is no set amount of Insurance everyone should have. The amount you may need is calculated based on a number of factors such as your:
Income – how much you earn today (and tomorrow!)
Dependants – do you have children or other financial dependants?
Debts – do you have a mortgage, loan or other debts?
Assets – have you accumulated any assets over the years, like property or shares?
We will assist you in recommending the products and insurance amounts to suit you.
Life Insurance
Life insurance helps ensure your debts and dependants are taken care of in the event of your death. Life insurance provides you with the peace of mind that that your interests will be protected after you’re gone. Today, life insurance is much more sophisticated, but the basic concept remains the same: it provides a one-off payment if you pass away or are diagnosed as terminally ill. A life insurance payment can help your family continue to live the life you’ve planned together: And at a time when emotions are running high, life insurance can provide the people you leave behind with financial certainty and security.
Trauma Cover
Trauma cover pays you a one-off lump sum after suffering from one of the specified major diseases or injuries covered, such as a heart attack, stroke, cancer or loss of limbs or sight. Trauma cover has been designed to cover medical and rehabilitation costs, to provide for your family and help with lifestyle and employment changes. Recovery (trauma) insurance takes the pressure off, so you can spend your time focusing on recovering – not worrying about your finances.
Total & Permanent Disability Cover (TPD Cover)
Total & Permanent Disability Cover (TPD Cover) pays a lump sum if you suffer an illness or injury that prevents you from ever earning an income due to disablement. Because TPD Cover benefits provided under Superannuation plans is often not enough, TPD insurance is a lump sum payment paid to yourself and is used to clear out debts, provide funds for medical costs and income to maintain your lifestyle.
Income protection insurance
Who will pay the bills if you are injured or sick? How long would your finances survive?
Income protection provides a monthly income when you’re unable to work because of injury or illness - important to consider if you are concerned what would happen without your income.
This type of insurance provides an income replacement while you are unable to work as a result of either sickness or injury, Totally Disabled or Partially Disabled. Cover is provided on a 24/7 basis and usually covers the individual world wide. You can choose the waiting period, benefit payment period and how much of your income you will insure (subject to minimum and maximum amounts).
Payments are made until the end of the chosen benefit period or when disablement ceases. Whilst the benefits are tax assessable as income, premiums are 100% tax deductible.
This means you can concentrate on recovering and getting back to work, rather than watching your investments and savings slowly diminish.