The different types of personal insurance.
LIFE INSURANCE — PROTECT THE ONES YOU LOVE!

The different types of personal insurance starts with the most important one.

Most Australians will insure their car but neglect to insure their most valuable asset – themselves. In fact, many people do not even have sufficient life insurance to ensure their home loan is paid out let alone provide a lump sum to their families to provide for their future.

How can Life Insurance help?

Life insurance provides a lump sum payment in the event of death or terminal illness. You choose the level of cover at the time of application that best meets your circumstances and budget.

Having adequate cover in place can give you peace of mind, knowing that if the worst should happen, your family will be financially ok and able to maintain their standard of living.

Generally, you need life insurance if other people depend on your income, or if you have debt that will carry on after your death. After all, you don’t want to leave your loved ones without money to live on. Dependents could be anyone who is financially dependent on you, like a spouse, sibling or an aging parent.

The funds could be used to;

– Repay the mortgage or other outstanding debt

– Invest and create an ongoing income stream to replace lost wages

– Meet education and / or childcare expenses

– Help with estate planning or business buyouts.

Consider this…..

You are married with two children in high school and a $250,000 mortgage. Your partner works full time and you have also recently returned to the workforce to help cover the daily bills. All is going well financially.

Then the unthinkable happens and your partner is in a fatal car accident.

Would your salary alone be enough to meet mortgage repayments, pay the daily living expenses of raising two teenage kids as well as the school expenses?

How would you cope financially?
The different types of personal insurance
Life Insurance – Protect the ones you love
INCOME PROTECTION – KEEP YOUR INCOME GOING, EVEN IF YOU ARE UNABLE TO WORK!
How can income protection help?

This can provide you with that regular income you need to meet your day to day expenses. This pays part of your income if you’re unable to work and it can help pay the bills so you can focus on getting better.

Generally, you can cover up to 70% (or more) of your salary and this is paid as a monthly benefit if you are unable to work due to illness or injury.

In most cases, income protection premiums are fully tax deductible, as a result making it even more affordable to protect what is probably your biggest asset—your income.

Additionally, you have the flexibility to nominate a waiting period and benefit period that is right for you.

Not matter what life stage you are in, your income is probably the single most important factor supporting the lifestyle you enjoy, so it’s difficult to imagine how life would be without it.

Deciding if you need income protection insurance?

This type of insurance can be important if you;

– are self-employed or a small business owner, and you do not have sick leave or annual leave

– have family members or dependents that rely on the income you earn

– have debt, such as a mortgage you’ll need to make payments on even if you’re unable to work.

Income Protection
Income Protection. Keep your income going even if you can’t work
TOTAL & PERMANENT DISABILITY (TPD) INSURANCE – PROTECTION WHEN YOU ARE NOT ABLE TO WORK AGAIN!

Being unable to ever work again due to total and permanent disability would have serious emotional and financial impact on you and your family. Having adequate cover in place for such an event can help secure your financial future and give you peace of mind.

How can TPD help?

TPD Insurance pays a lump sum benefit to you in the event of total and permanent disability as a result of sickness or injury. This means if you can no longer return to either your usual or casual occupation or any occupation (depending on your chosen policy), you get a payout.

You choose the level of cover at time of application that best meets your circumstances and budget.

This payment could provide you with financial security by ensuring there is enough money to;

– cover any unexpected medical treatment for your condition

– Pay off debts

– Provide a lump sum which could be invested to provide you with ongoing income stream and top up any income protection benefit..

What is covered?

Each insurer defines TPD differently, but here are some examples. Anyone expected to make an eventual recovery is not permanently disabled. Thus, they do not qualify for cover.

Milder conditions may also not be considered for claims. For example, the loss of a finger may not be severe enough to stop you from working. However, such an injury may qualify for a limited benefit (e.g. 25% of a full payout.

Consider this…..

You have recently started work as a General Practitioner in a local doctor’s surgery after many years of study. You have purchased a home and have a $400,000 mortgage.

Then….. You are in a serious car accident and suffer permanent injuries to your back which will prevent you from every working again.

How would you meet your mortgage repayments and daily living expenses. Do you have access to capital to modify your home if needed and over the expenses of rehabilitation?

How would you cope financially?
Total & Permanent Disability
The different types of personal Insurance – Protection even when you can’t work
TRAUMA INSURANCE – PROTECTION WHEN YOU NEED IT THE MOST!

With the advancement of medical science, we are now living longer and we are surviving illnesses and traumatic events that would have once resulted in death. This is great news!! However, it is also important to consider your quality of life if you have been diagnosed with a serious illness.

How can Trauma Insurance help?

Trauma insurance provides a lump sum benefit upon the diagnosis of a specified medical condition.  There are a number of medical conditions covered under most trauma insurance policies, however the most common conditions claimed for are; cancer; heart attack; stroke and coronary related illnesses.

Holding adequate trauma insurance can give you peace of mind, knowing that if you are ever in this situation, there will be funds available to meet your financial needs which will allow you to focus on your recovery rather than the bills.

The funds could be used to;

– access treatment for your condition which may be overseas

– rehabilitation costs

– reduce the mortgage or other outstanding debts to a more manageable level

– help reduce lost income if you need to take time off to care for family members or simply top up an income protection benefit.

Consider this…..

You have a son aged 9 and a $250,000 mortgage. You work full time as does your partner.

Then… You are diagnosed with cancer and are unable to work while you receive extensive treatment. Your partner reduces hours to care for you and it’s not long before you have used your sick leave.

How would you cope financially?

– would you have enough savings to cover all of your out of pocket medical expenses? Or access the best medical treatment?

– would your combined reduced income meet the mortgage repayments as well as the daily living expenses?

– what about funding the additional childcare needed while you receive treatment and are unable to care for your son?

Protection when you need it the most

Protection when you need it the most

The different types of personal insurance. They can all play an important part.