Insurance + Protection
You can’t afford to not have insurance + protection in place to protect your lifestyle + your family’s tomorrow!
Personal Income Insurance
We’re all familiar with insurance!
You probably have an insurance policy or more than likely, several insurance policies for protection you’re not even aware of. There’s your home and contents, your car insurance and private health to name a few. We all work hard, and sometimes unknowingly we work hard to acquire the assets these insurances protect. Having insurance in place is your best option for protecting you and your family – your most valuable asset.
Understanding the different types of personal insurance and the exact cover you have are key components to good financial management.
WHAT IS PERSONAL INSURANCE?
There are four main types of personal insurance;
- Life Insurance
- Total + Permanent Disablement (TPD)
- Income Protection Insurance +
- Trauma Cover
Premiums are based on several factors, such as age, gender, occupation and pre-existing health issues.
Want to know more about personal insurance? The differences between your options as well as why you would need it, when you should get it and how to get it?
Download our free guide to give you peace of mind and find out everything you need to know to ensure you are making the right decision for you and your family.
Insurance + Protection FAQs
Insurance is a risk management tool that provides financial protection against unforeseen events or losses.
It involves transferring the risk of potential financial losses to an insurance company in exchange for payment of regular premiums. You may need insurance to safeguard yourself and your assets, mitigate financial risks, and gain peace of mind knowing that unexpected events won’t have a devastating impact on you, your family, or your finances.
Life insurance provides financial protection to the policy holder’s beneficiaries in the event of the policy holder’s death. It is the only type of insurance that provides no benefit to the policy owner in the event of a claim, instead the policy owner often holds life insurance with the purpose of looking after their loved ones.
The benefit payable in the event of a claim can help replace the policy holder’s income, cover outstanding debts left behind, pay for funeral expenses, or support the financial needs of dependents.
General Insurance provides coverage for a wide range of risks other than life. It offers financial protection to the policy holder against losses or damages to assets, liabilities and legal obligations. The purpose of general insurance is to protect individuals, businesses, and properties from various risks such as accidents, theft, property damage, liability claims, natural disasters, and more.
Determining the appropriate amount of insurance coverage depends on several factors unique to your personal circumstances. There is no one size fits all approach, and it differs depending on what type of insurance you may want or require, however, some general guidelines that are often considered to assess a person’s insurance needs are:
- Income Replacement: consider the financial support your loved ones would require if you were to pass away. Or, if you were unable to work for an extended period due to injury or illness, you may want to be insured against loss of income.
- Debt Repayments: consider any outstanding debts and ensure your insurance coverage is sufficient to cover these liabilities in the event of an unexpected illness, injury, or death.
- Education Expenses: if you have dependents, what are their future education costs?
- Medical Expenses: large medical bills may arise due to unforeseen circumstances, such as being diagnosed with a serious illness or suffering a serious injury.
- Additional Expenses: consider other expenses like funeral costs, or any other specific requirements you may have.
- Current Liquid Assets: for example, you may gain access to your superannuation in the event of a claim on insurance such as TPD (Total and Permanent Disablement), so this may decrease the level of insurance cover you need in some cases.
Furthermore, your budget and determining how much you are willing to pay in insurance premiums could be a factor. This makes finding the balance of your desired coverage level with the affordability of premiums an important task.
Income protection insurance often excludes coverage for the following:
- Pre-existing conditions before the policy’s commencement date.
- Self-inflicted injuries or intentional acts of risky behaviour.
- Disabilities or injuries sustained while engaging in criminal activities or illegal acts.
- Non-disclosure or misrepresentation during the application process.
- Unemployment or voluntary redundancy that is not as a result of illness or injury.
- During waiting periods, in which no benefits are payable.
It’s important to review the policy documents as each policy may differ depending on the provider and your personal circumstances.
During a life insurance application, you can expect to be asked questions about your age, gender, occupation, health history, lifestyle habits, family medical history, current medications, and any risky activities or hobbies you engage in, as well as details regarding the coverage amount and beneficiaries you wish to designate.
No, it is generally not possible to claim income protection insurance for sick leave.
Income protection insurance is designed to provide income replacement in the event of an illness or injury that prevents you from working for an extended period. Sick leave, on the other hand, is typically provided by employers and offers a limited amount of paid time off for temporary illnesses.
Income protection insurance comes into effect after a waiting period and provides coverage beyond the duration of sick leave. It’s important to review the terms and conditions of your specific income protection insurance policy to understand the coverage details and any applicable waiting periods.
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