The 3 main insurances you most likely will have are the following:
1. Life insurance (or death benefit) cover
This insurance pays a lump sum to your nominated beneficiary or estate if:
You die, or
You’re diagnosed with a terminal illness.
Life insurance pays out not only when you die, but it may also pay upon diagnosis of a terminal illness. The definition of a terminal illness can differ slightly between insurers, but generally it will be when a doctor’s diagnosis gives you a life expectancy of less than twelve months.
A lump sum amount is paid out based on the amount you nominated when you took out the policy. The funds can be used for any purpose, but are often used to repay mortgages and other debts, cover funeral expenses and provide an ongoing income or financial buffer for the surviving family and loved ones.
2. Total Permanent Disability (or invalidity) insurance (TPD)
This insurance pays a lump sum if you become incapacitated.
Total Permanent Disability insurance is a type of cover designed to provide financial protection in the event that you are unable to work ever again due to injury or illness.
If you become unable to work ever again, your ability to earn an income is similar to what it would have been if the injury or illness had resulted in your death. The payout from a TPD insurance policy will generally be used in a similar way to a life insurance payout, however the funds will also have to support yourself as well as your family.
3. Income Protection (or salary continuance) insurance
Income protection insurance, also known as disability insurance, is designed to cover you financially if you are unable to work for a period of time due to illness or injury.
The policy will pay you a monthly benefit based on your income. This amount will generally be 75% of your income, but can differ depending on the options chosen when taking out the policy.
An income protection policy will have a waiting period and a benefit period. The waiting period relates to how long you must be unable to work for before benefits will commence, and the benefit period relates to how long the monthly benefits will continue for. The maximum benefit period generally runs through to age 65, but can be longer in some circumstances.
These type of insurances are important for any individual but for some of us with a family to protect they become crucial. The beauty of these 3 insurances is that you can pay for all of them out of your super fund so it doesn’t hurt your back pocket.
Wouldn’t you like the peace of mind knowing that if something tragic was to happen everything and everyone was looked after?
As an extra incentive we will rebate you up to $500* from your insurance premium if you contact us now.