What is the main difference between income protection and TPD insurance?

Income protection insurance pays an ongoing monthly benefit if you are temporarily unable to work due to illness or injury. It replaces a portion of your regular income allowing you to meet everyday expenses while you recover. Total and Permanent Disablement (TPD) insurance on the other hand provides a lump sum payment if you suffer a serious illness or injury which means you will never be able to work again. It is designed to cover significant one-off costs like debt repayment, medical expenses and home modifications.

Can I get life insurance through my superannuation fund?

Yes, you can often get several types of life insurance through your superannuation fund. Many super funds offer default cover for life insurance, TPD insurance and sometimes income protection. This cover is generally basic, but can be a convenient and cost effective option. However, it is always wise to review the details of your super fund's insurance to ensure it meets your specific needs and consider if additional standalone policies are required.

What factors influence the cost of my life insurance premiums?

Several factors influence the cost of your life insurance premiums. These include your age, gender, occupation, health, and lifestyle choices. Younger, healthier individuals generally pay lower premiums. Certain hazardous occupations or hobbies like skydiving can lead to higher costs. Insurers will also consider your medical history, smoking status and the amount of cover you choose.

Does life insurance always require a medical exam?

No, not all life insurance policies require a medical exam. For some policies, particularly those with lower cover amounts or funeral insurance, you may only need to answer a few health questions. However, for larger sums insured or more comprehensive policies, a medical examination, blood tests or a report from your doctor may be required. This helps the insurer assess your health risks accurately.

What specific conditions does trauma insurance typically cover?

Trauma insurance typically covers a defined list of serious medical conditions and events. Common conditions include cancer, heart attack, stroke, coronary artery bypass surgery, and major organ transplants. The exact list of covered conditions and the severity required for a payout can vary significantly between different policies and insurers so it is important to read the Product Disclosure Statement (PDS) carefully.

What are the waiting period and benefit period in income protection insurance?

For income protection insurance the waiting period is the amount of time you must be unable to work due to illness or injury before your benefits start to be paid. Common waiting periods range from 30 to 90 days. The benefit period is the maximum length of time for which your policy will pay an ongoing income benefit. This can vary from 2 years, 5 years, or up to age 65, depending on your policy choice.

Can I get life insurance if I have a pre-existing medical condition?

Yes, it is often possible to get life insurance if you have a pre-existing medical condition. However the insurer may assess your condition to determine the level of risk. This could result in your policy having specific exclusions related to that condition, higher premiums, or an altered sum insured. It is crucial to be honest and upfront about all medical history during the application process to avoid issues when making a claim.