What is Personal Insurance?

Personal insurance provides protection and peace of mind for those unforeseen events. Proceeds can be used for any purpose. If you are working, have a lot of debt or have a family with dependants you probably need personal insurance.

There are four main types of personal insurance products available, Term Life, Total and Permanent Disability (TPD), Trauma and Income Protection insurance. A key distinguishing feature is that Term Life only provides a benefit when you are no longer alive while TPD, Trauma and Income Protection generally only provide a benefit while you are living. A combination of Term Life insurance and one or more other personal insurance is usually necessary.

Term Life Insurance

What would happen to your family if you were no longer around to support them? Term life insurance provides financial protection to your loved ones in the event of your untimely passing by making a one-off payment to your nominated beneficiaries or your estate. The payment could be used to retire debt such as a mortgage or to provide income for your dependants.

Total and Permanent Disablement Insurance (TPD)

What if you became permanently disabled through injury or otherwise and could no longer work again? TPD provides financial protection to you and your dependants in the event of your total and permanent disablement by making a one-off payment to you. You should review the definitions of total and permanent disablement under competing policies and importantly whether the work test applies to your own occupation or to any occupation. To apply for TPD insurance you also need to be working at the time.

Trauma Insurance

Advances in medical treatment have meant that many of us will survive medical conditions such as cancer, stroke or a heart attack. Still such an event is likely to be very disruptive to your life. You may need to take extended leave from work during treatment and many expenses and treatments are excluded from standard hospital cover and Medicare. Trauma insurance provides financial protection to you and your dependents should you be experience a defined trauma event by making a one-off payment to you. The trauma might be an injury or a defined medical condition. It is important to review the number and types of medical conditions covered by competing policies and how each medical condition is defined.

Income Protection Insurance

For most of us our most valuable asset is our future earning potential. Think of how much you earn now and how long you are planning to work? What if you were never given the opportunity to earn this income because of sickness or injury? Income protection insurance can provide financial protection to you and your dependents by making an ongoing monthly payment to you should you, as a result of a medical condition or accident, be unable to work. You will need to choose a waiting period (how long before your benefit starts to accrue) and a benefit period (how long your benefit will be paid). For example, you might like just to cover the period after your accumulated sick leave and long service leave would be depleted. Unlike TPD your disablement does not need to be total and permanent. To apply for this type of policy you need to be working at the time and you can only insure up to 75 per cent of your earnings.

How we can help by providing Personal Insurance Solutions?

As a Corporate Authorised Representative of Lifespan Financial Planning we act as an insurance broker so we act on your behalf rather than on behalf of the insurer. We are therefore able to act in your best interests to find a policy to suit your needs at the lowest cost. If you are interested in personal insurance cover or would like to review your existing cover simply follow this link: Enquiries