Pays a lump sum if you are diagnosed with a critical illness or major trauma such as cancer, a heart attack or stroke. This is an ideal complement to Life and Income Protection.
Insurance is a shield to meet the blow that you can`t see coming.
Have you ever thought how your family would cope financially if you were to pass away unexpectedly, or suffer a critical illness. With busy work and family schedules we don`t have much time to consider the emotional and financial implications that a serious illness or death may have on our family.
You should regularly review your family`s financial situation, in conjunction with your financial advisor, to ensure that you are adequately insured. A serious illness can place pressure on a person and their family. While dealing with the strain of doctor`s visits, hospital stays and medication, individuals still need to ensure that bills are paid – mortgage, personal loans, food, gas, electricity, rates, school fees, and daily living expenses. You may even have additional costs, such as those for medical treatments, travel costs associated with medical treatment, or nursing care costs at home.
The greater your current financial obligations, and the greater number of dependents you have, the more life insurance you may need to protect your assets and your family`s future financial security. Future obligations which may need to be considered are your mortgage, paying for your children`s education, settlement of personal debts, funeral expenses and your family`s living expenses.
Many people are under the assumption that financial support from Work Cover is sufficient for work related injuries, and their current investments and superannuation (insurance within superannuation and savings within superannuation funds) are adequate for such unexpected events. However, usually this is not the case. Individuals should avoid making an error in assuming it will be enough.
At Investlink Group we would not be adequately serving our clients if we did not encourage them to obtain protection for themselves, just in the same way we readily protect and insure our homes and cars.
There are 4 most common types of personal insurance:
Term Life Insurance
The most common type of cover is term life which provides a lump sum benefit to the policy owner on death of the life insured. This cover financially protects families and/or businesses from the financial challenges arising from death.
This lump sum can help with areas such as repayment of debts, covering future needs such as the cost of children`s education or long-term care, providing funds for investment to generate an income stream or to keep a business afloat.
Total and Permanent Disability Insurance
Total and permanent disability (TPD) insurance will provide a lump sum payment should the person insured suffer an illness or injury which causes permanent disability (as defined in the policy). Generally a permanent disability means that you are unable to work in your current occupation, a job that you`ve worked in, or a job that you could do as a result of previous training or study. There are many specialized definitions of TPD and your financial adviser can recommend the one most suitable for you.
Income Protection Insurance
Income protection (or salary continuance) insurance is designed to provide a regular income in the event that you are unable to work due to sickness or injury. Generally, income protection insurance provides a regular income during a period of disablement up to a pre-determined and agreed benefit period. The benefit amount payable is up to 75% of your income (net of business expenses but before tax).
Trauma insurance (or critical illness) cover provides a lump sum benefit on diagnosis of a defined specified event. Trauma insurance is designed to help people financially following a trauma or crisis, such as a heart attack, stroke, cancer or other life threatening condition.