What types of insurance are available?
Let’s take a look at the different types of life insurance you can take out.
Income protection
Protecting your income means you are protecting your lifestyle. Income Protection, also known as salary continuance, usually pays a monthly benefit of up to 75% of your regular income if you’re too sick or injured to work.
This type of insurance is designed to help you continue paying the mortgage, children’s school fees, phone and utility bills, run your car, buy food and clothes, basically all of your day-to-day living expenses.
To understand more about how Income Protection works and when you would need this type of insurance read Protecting your income, means protecting your lifestyle.
Total and permanent disablement (TPD)
TPD cover provides a lump sum payment if you’re totally and permanently disabled. This cover can help you pay for medical expenses, repay major debts and help provide for your future.
To understand more about how Income Protection works and when you would need this type of insurance read Do I need Death and TPD cover?
Trauma cover
Trauma cover provides a lump sum payment if you’re diagnosed with a specified ‘trauma’ condition. The types of conditions that trauma cover will cover you for include heart attack, multiple sclerosis, motor neurone disease, major organ transplant, severe burns, cancers, dementia, stroke or paralysis – to name a few.
TIP: When taking out trauma cover check the list of conditions, as each insurer is different. Also talk to your financial planner about the difference between the definitions each insurer offers.
Trauma cover is designed to help cover your increased medical costs and living expenses, providing you some financial security during the important recovery process.
Death cover
Death cover offers you the security that if the unexpected were to happen, at least your family won’t have to worry about money.
Death cover works by making a lump sum payment to your family if you die or are diagnosed with a terminal illness.
It’s important for people of all ages, especially if you have others relying on you financially or you have large debts such as a mortgage.
To understand more about how Income Protection works and when you would need this type of insurance read Do I need Death and TPD cover?
Business overheads insurance
If you become injured or too sick to work Business Overheads Insurance reimburses you the business’ overheads. It is suitable for people who’s business cashflow is generated largely by their personal efforts.