Think you might need life insurance but don't know where to start?
Life insurance is designed to provide immediate and ongoing support to those financially dependent on you if you were to pass away or suffer a serious injury or medical condition. Life Insurance ensures your loved ones aren't left to experience financial hardship by covering existing debts and everyday living expenses. The first step for anyone looking to take out life insurance is to determine if they actually need cover and if so how much cover they require.
Questions you should ask yourself ...
- No - They are dependant on my financial support
Everyone is different and will require different levels of cover. Get a more comprehensive understanding of your individual policy requirements by speaking to a qualified adviser.
- Yes - My loved ones will be just fine
- No - I will need additional financial support
There are many types of cover to protect yourself against financial pressure if you were no longer able to work due to a serious illness or injury. An insurance consultant can guide you through the process of identifying the type of cover you may require and help you tailor cover closer to your needs through additional benefits. The different types of "Living Insurance" are listed below:
Will provide 75% of your income paid monthly if you are forced to take time out of work due to an illness or injury. Some policies will provide additional payments to cover rehabilitation expenses
Total & Permanent Disability (TPD) Cover:
Provides a lump sum benefit in the event you suffer total and permanent disablement as defined by your policy. The benefit is usually paid if a medical practitioner deems you are not capable of returning to your previous occupation
Often purchased with life cover, trauma insurance will provide a lump-sum benefit if you suffer a serious medical condition such as stroke, cancer or heart attack. Some policies will cover up to 50 different conditions
- Yes - I have supplementary cover from other insurance policies to help me cope
While most Australian’s have some sort of cover in their Superannuation Fund, Health Insurance or WorkCover policy. What most people don’t know, is the default cover provided is usually only a portion of what they will actually require in the event of death, serious illness or injury (sometimes as little as 20%).
If you're not sure about whether the cover provided by your employer or super fund is enough, it may be worthwhile to find out exactly what you stand to receive in the event of a claim and comparing this to what you actually require. An insurance consultant can also help you review your policy.
You may require different cover based on where you are in life ...
|Age||Life Events||Financial Obligations||Types of Insurance to Consider|
|55 and Over|
Receive a obligation-free quote by entering your details below
Compare Life insurance quotes from these direct brands
What can a life insurance benefit cover?
- Outstanding debt such as mortgage, credit card debt and other existing loans
- Everyday living expenses such as food, fuel, clothing and utility bills
- Education and childcare fees
- Funeral expenses
- Medical treatment if policyholder suffers serious medical condition (via Trauma insurance)
- Modification to home and rehabilitation expenses (via TPD insurance)
These are just some of the expenses that may need to be covered following death or serious illness or injury. Most policies will offer additional cover options to help you tailor your plan closer to your needs.
Why do you need life insurance if ...?
- I've already got life insurance in my super...why consider other cover?
Many people forget that the default cover provided through superannuation is usually only a portion of what they will actually require in the event of death, serious illness or injury (sometimes as little as 20%). It’s also worth noting that some funds may be quite restricting in the level of cover available and may not be able to provide all types of cover with Trauma insurance not available via superannuation.
- You are young, single with little debt and have no kids...why consider cover?
What about if you were forced to take months or even years off work due to illness or serious injury? It could be worth thinking about income protection.
- You are already covered by workers compensation?
Workers compensation will only provide cover for illness or injury that has occurred at the workplace...even injuries that occur on the way to work are no longer covered.
- You are retired and over 60?
Your kids might be more financially dependent butIt could still be worth considering to cover any existing debts, medical treatment if you suffer a trauma event and any final expenses.
- You don't work and your partner has life insurance policy?
Many people are surprised by the cost that can be incurred from the loss of a homemaker. Expenses such as funeral costs, childcare, transport, house care and maintenance can have a significant impact on the family income following the loss of a stay at home parent. You may not require the same level of life cover as your partner but it may still be worth considering TPD and Trauma cover or taking out a joint policy with your spouse. A joint policy will payout on the first death of a couple and can bring premium discounts of up to 15%.