| Type Of Cover Available | Description |
|---|---|
| Life Cover | Will pay a lump sum upon death or diagnosis of a terminal illness. It’s the easiest to understand when it pays out. Think about paying out your debt, covering education expenses, funeral & medical costs, estate equalisation, having an emergency fund for your family, creating a lump some to provide an income for your family. |
| Total & Permanent Disablement (TPD) |
TPD cover pays a lump sum if you become totally and permanently disabled and therefore are unlikely ever to work again. It’s about maintaining as much quality of life as possible. There are two forms of definition on a TPD policy
Eg. A surgeon injures his hand. Under ‘Any Occupation’ he would likely not be paid out as he could work as a GP, or lecturer. Under ‘Own Occupation’ he would get paid out because he can’t do the duties of his own occupation. Medical costs with these types of claims can be extremely high, so think about covering them. Also consider clearing your debt, providing an income for your family (remember income protection only provides 75% of your income), home modifications, access to treatment that you normally wouldn’t have access to. |
| Trauma (Critical Illness) |
This provides a lump sum upon the diagnosis, or occurrence of one of a list of specific injuries and critical illnesses. Death rates are falling for many of our leading health concerns, such as cancer, heart disease, strokes,& injury. It’s the financial cost of suffering these conditions that can be debilitating. On average, households (in NSW) can expect to incur $47,200 in financial costs after a member of that household is diagnosed with cancer. This doesn’t include rehab costs, lifestyle changes, time off work, ongoing treatment. What’s covered: About 40 conditions covered. Some of these include Cancer, Stroke, Heart Attack, Coma, Chronic Kidney, Liver & lung disease, Severe burns, Intensive care, Advanced Diabetes, Open heart surgery, Brain tumour, Multiple sclerosis, major head trauma, Motor Neuron disease. |
| Income Protection |
This generally provides a monthly benefit up to 70-75% of your gross earnings if you are unable to work due to sickness or injury. Some policies can increase this payment to up to 90% for the first two years. This cover is designed to help cover your ongoing commitments ie. Bills, debt repayments, costs of living as a result of not being able to work. Has a Waiting Period: This is when you need the policy to start after suffering the condition. Normal waiting periods are 30, 60 or 90 days. Has a Benefit Period: This is how long you can potentially claim for. eg. 2ys, 5ys, to age 65 or even age 70. Premiums for this cover are tax deductible if paid outside of superannuation. For example you could save up to 47% on the cost of premiums if earning more than $180k and the premiums claiming as a tax deduction.
|
| Type Of Cover Available |
|---|
| Life Cover |
| Will pay a lump sum upon death or diagnosis of a terminal illness. It’s the easiest to understand when it pays out. Think about paying out your debt, covering education expenses, funeral & medical costs, estate equalisation, having an emergency fund for your family, creating a lump some to provide an income for your family. |
| Total & Permanent Disablement (TPD) |
|
TPD cover pays a lump sum if you become totally and permanently disabled and therefore are unlikely ever to work again. It’s about maintaining as much quality of life as possible. There are two forms of definition on a TPD policy
Eg. A surgeon injures his hand. Under ‘Any Occupation’ he would likely not be paid out as he could work as a GP or lecturer. Under ‘Own Occupation’ he would get paid out because he can’t do the duties of his own occupation. Medical costs with these types of claims can be extremely high, so think about covering them. Also consider clearing your debt, providing an income for your family (remember income protection only provides 75% of your income), home modifications, access to treatment that you normally wouldn’t have access to. |
| Trauma (Critical Illness) |
|
This provides a lump sum upon the diagnosis, or occurrence of one of a list of specific injuries and critical illnesses. Death rates are falling for many of our leading health concerns, such as cancer, heart disease, strokes,& injury. It’s the financial cost of suffering these conditions that can be debilitating. On average, households (in NSW) can expect to incur $47,200 in financial costs after a member of that household is diagnosed with cancer. This doesn’t include rehab costs, lifestyle changes, time off work, ongoing treatment. What’s covered: About 40 conditions covered. Some of these include Cancer, Stroke, Heart Attack, Coma, Chronic Kidney, Liver & lung disease, Severe burns, Intensive care, Advanced Diabetes, Open heart surgery, Brain tumour, Multiple sclerosis, major head trauma, Motor Neuron disease. |
| Income Protection |
|
This generally provides a monthly benefit up to 70-75% of your gross earnings if you are unable to work due to sickness or injury. Some policies can increase this payment to up to 90% for the first two years. This cover is designed to help cover your ongoing commitments ie. Bills, debt repayments, costs of living as a result of not being able to work. Has a Waiting Period: This is when you need the policy to start after suffering the condition. Normal waiting periods are 30, 60 or 90 days. Has a Benefit Period: This is how long you can potentially claim for. eg. 2ys, 5ys, to age 65 or even age 70. Premiums for this cover are tax deductible if paid outside of superannuation. For example you could save up to 47% on the cost of premiums if earning more than $180k and the premiums claiming as a tax deduction. |