There are a number of key insurance areas where we can provide assistance. The information below details information of types of cover, what benefits they provide, the cost, and what you should look for in the policy.
If you are unsure as to what your ideal level of cover is, we can provide assistance. In order to us to determine your needs you will need to submit some details and we can provide you with a full report on the recommended level of cover and the premiums.
Term Life Insurance
Term Life pays a lump sum upon the death of the life insured, this provides protection to your loved ones. In the event of the persons death the lump sum will assist in paying off any outstanding debts such as a mortgage. There should usually be excess over debts to assist your family especially if you have children.
Some policies provide extra benefits, such as terminal illness benefit, where if you are diagnosed with a terminal illness the amount insured is paid out.
The cost of Term Life cover increases as you get older, however the older and more established your financial position is the less insurance you are likely to need. Therefore it's possible to reduce your insurance over time to minimise cost but maintain protection for yourself and your loved ones.
Total and Permanent Disablement Insurance (TPD)
An option with Term Life is to take an extension of Total and Permanent Disablement Insurance (TPD). TPD insurance provides a lump sum payment in the event of the life insured becoming totally and permanently disabled.
Trauma Insurance
Trauma policies pay a lump sum in the event of an injury or sickness as defined in the policy, for example cancer, heart attack, stroke. This can be taken as a stand alone policy, or attached to a life insurance policy.
There are basic trauma policies and there are extended trauma policies that cover a greater level of events (we only quote on the extended cover). Some policies offer TPD as a definition of trauma, therefore this can provide cost savings.
The average age of a trauma event is 42, therefore it's costly, however it should form part of any complete insurance coverage. The important thing to remember is that with a trauma event you do not need as much cover as life insurance.
Income Protection
Probably the most crucial and flexible insurance. Designed to replace your income if you are unable to work due to sickness or injury. Your most valuable asset is the ability to produce an income and this must be protected.
There are basic policies, which might be limiting in the time of a claim, and then there are extended, or plus policies which are preferred.
Income Protection is an extremely flexible policy, you choose the waiting period, this is how long you must be unable to work before the insurance begins to pay you. Variables are 14, 30, 60 and 90 days, 6, 12 and 24 months. Therefore it can be tailored to cover you once any accumulated sick and long service leave are used. The benefit period is how long the policy will pay you if you are unable to work, again this can be tailored: 2 and 5 year benefit, or to a specific age, 55, 60 or 65.
Importantly, the cost of income protection is fully tax deductible. The cost varies significantly based upon the waiting period, benefit period, amount of income insured and the insured occupation.
