Your Guide to Personal Insurances

Insurance is an essential aspect of providing a safety net for you and your family in unexpected circumstances. There are four key personal insurances which can offer protection and peace of mind:

  1. Life Insurance
  2. Total & Permanent Disability (TPD) Insurance
  3. Trauma Insurance
  4. Income Protection Insurance


An outline of each of these has been detailed below.


Life Insurance

Life insurance provides a lump sum payment to your dependents or nominated beneficiaries if you pass away or are diagnosed with a terminal illness.


Total & Permanent Disability (TPD) Insurance

TPD Insurance pays a lump sum if you become totally and permanently disabled and are unable to work again.

The definitions may vary between policies as you can insure for Home Duties, Any Occupation & your Own Occupation.


Trauma Insurance (Critical Illness Insurance)

Trauma Insurance provides a lump sum payment if you are diagnosed with a specific critical illness, such as cancer, heart attack, or stroke. Generally, a comprehensive policy covers 40+ critical illness conditions which are found in each policies Product Disclosure Statement.


Income Protection Insurance

Income Protection Insurance pays a regular income (usually up to 70% of your gross salary) if you’re unable to work due to illness or injury. The policy pays after a waiting period (e.g., 30, 60, or 90 days) for the benefit period of the policy (2 years, 5 years or to age 65)


Why insurances are important?

Each of these insurances serve a distinct purpose in safeguarding against unforeseen life events. Selecting the right combination depends on various factors including your age, health, family situation, occupation, and financial goals. Some of the specific areas we discuss with clients to determine the right level of cover are:

  • Your ongoing income requirements
  • Protecting your family’s financial future
  • Medical expenses
  • Repaying debts


Please note that insurance needs and availability can change over time, and this guide may not include all possible options or considerations. Individual circumstances and the specific terms of any insurance policy will always determine actual coverages and benefits.


Group Cover vs Comprehensive Cover

The insurance cover within your retail or industry super fund is referred to as group cover. There are restrictions on the types of insurance and benefits that can be offered on group cover. Group insurance inside super does not include Trauma cover or own occupation TPD cover, furthermore, Income Protection is generally not as extensive as with a retail product.

The default level of cover you are offered does not underwrite you prior to obtaining the insurance and covers a broad range of customers. Often these insurances do not comprehensively cover the insured, can be hard to claim on and also in some cases more expensive than full comprehensive cover.

Comprehensive retail cover is taken out directly with the insurer, you can still choose to pay premiums from super and you have more flexibility in structuring the ownership tax effectively.


Insurance Review

Whether you already have insurances that you want to review, or you want advice on getting comprehensive insurances we are here to help.


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