Life insurance policies are available to anyone in Australia. These policies insure policy holders and their families so that no matter what happens, they are amply and comprehensively covered. Australia has hundreds of insurance companies which together offer thousands of different types of policies. Because of this, the public has a wide variety of choice – which plan, policy, and company they want to give them cover.
Nowadays, the most common type of life insurance policies offered in Australia is term life policies. It is because this type is easy to understand and has cheap initial payment. For one, if you opt for a term insurance policy, you have the choice the length of cover you need – from a few months to 99 years. However, it should be noted that the plan you choose will greatly affect the premium you will pay.
Benefits of Life Insurance from an Australian Company
Australian insurance providers have different features in each package and policy. However, in Australia we are lucky enough to have access to some of these common benefits:
- Life insurance provides protection for the financial dependents for when the policyholder dies. The insurance provider will pay a lump sum benefit which would enable them to pay mortgages, and any outstanding financial obligations. The waiting period may vary, but the most common is 7 to 14 days after the insured pass away. In special cases, the benefit is paid out within 7 days after the insured's death.
- Life insurance policies give you and your family a worry-free life against possible financial hardships that death or accident can incur. The knowledge of being protected lessens the stress you have and lets you enjoy life more.
- Other life insurance policies have extra features which include disability cover. This can be acquired by adding a certain amount to your life cover. This type of feature covers you for injury sustained that will make you unable to work.
- One of the biggest benefits of life insurance is you are given the flexibility to increase your cover without the hassle of providing extra medical proof.
Australia has truly one of the widest ranges of insurance products in the market. This would allow you to choose the type of cover that would complement your needs.
Types of Life Insurance
Among the hundreds of life insurance plans and packages available to Australians, there are three styles of cover which all life insurance policies can be categorised as. Each of the three main types can be purchased as a standalone policy or put together in an insurance package.
These three main types of insurance are income protection insurance, critical illness insurance, and cover life insurance. They all have the same basic purpose – give security to you and your family by paying a benefit that would help you adjust to the major changes in life, such as death, injury, illness, or disability.
Income Protection Insurance
Income protection insurance is a type of insurance that pays out a steady stream of income on a monthly basis. The payment could be up to 75% of your gross monthly income although it may be different depending on the insurance provider. It covers you when you become disabled and are unable to work because of an illness or injury.
Nowadays, leading insurance providers have increased their maximum benefits giving their clients more cover. They have even included an optional benefit which allows you to take advantage of their rehabilitation program, which aids the policy holder to get back on track.
This rehabilitation program pays a maximum amount of up to 50% of your gross monthly income if you are eligible. The rehabilitation program includes all the resources and training you can get to help you get back to the work force smoothly. This means covering the costs for approved rehabilitation programs, vocational training, special equipment, and workplace modifications to ensure smooth transition.
Critical Illness Insurance
Critical Illness Insurance is also known as Trauma Insurance. It was first conceptualised in South Africa by a doctor named Dr. Marius Barnard. Involved in the world's first heart transplant, Dr. Barnard was confronted by the fact that although he can save a person's life, he cannot save them financially.
Trauma insurance does not wait for you to die before it pays you a benefit; therefore it falls under the category of 'living' insurance. And since it falls under that category, it provides you with benefits while you still have a quality of life. It provides a lump sum payment when you have or is diagnosed with a life-threatening illness, like cancer, stroke, and heart disease.
Life insurance eases the burden of what the extra expenses could cause to your finances by paying you a lump sum in the event of the insured's death. Furthermore, it helps you and your family to adapt emotionally and mentally to changes brought about by death and disability through the financial benefit you can receive during these events. Instead of being emotionally and financially hurt by sudden death or accidents, life insurance assures you that whatever may happen to you, your loved ones will still enjoy the same lifestyle.