Finance broker discusses what can be protected under the Life Insurance umbrella?

April 12, 2017
Annette Kennedy

Over the years life Insurance has evolved to keep up with medical advances and the fact people are suffering financially due to loss of income or medical costs from injuty, sickness and more serious conditions like heart attacks and cancers.

Most of us don't think twice about insuring our home and car but how many people protect their family and income?

In Australia, 60% of families with dependents will run out of money within a year if the breadwinner dies.*

We all take our health for granted and rarely think that anything bad could happen to us.  Yet it's important to consider how you or your dependents would cope financially if you were unable to work.

How would you sustain your lifestyle and pay your bills if you were sick or injured?

In the event of your death, who would provide for your family?

Finding yourself in these circumstances is emotionally demanding and the last thing you want to think about is your mortgage repayments and day-to-day living expenses.

There are a number of key risks that you can insure against and we've listed the most common below.

Income protection - pays up to 75%of your income if you are ill or injured and unable to work.  This money helps you stay on top of your living costs like mortgage repayments, food, utility bills, etc while you recover.

Life Insurance - pays a lump sum amount in the event of your death - helping protect your loved ones' lifestyle and future.  It helps ensure your family could survive without you, paying off their debts and providing them with an income to continue living.  If you have a family equity loan, it will mean you are protecting your guarantor's interests.

Critical illness (Trauma) Insurance - pays an agreed lum sum if you suffer a listed serious illness or injury, for example a heart attack or cancer, where treatment can be lengthy and expensive.  It helps cover the costs of getting well, such as medical treatments, surgery and rehabilitation therapies.

Total & Permanent Disablement (TDP) Insurance - pays a lump sum if you are unable to work again due to anaccident or illness that leaves you permanently diabled .  It can help cover expenses such as rehabilitation, home modifications and carer fees or allow you partner to reduce their work hours to look after you.

Child Cover Insurance - pays a lump sum if your son or daughter suffers from a listed critical illness condition, giving you the support to take time away from work and focus on their recovery.  as your child reaches adulthood, they can easily convert this cover into a full policy without any health questions.  Most Insurers will allow you to add this onto your Insurance, providing it's outside of super.

 If you would like help to work out your Insurance needs and a personalised protection strategy please contact our office on 5559 2563 and we will organise a time that suits you to speak with our expert Jay Flemming, our Gold Coast Financial Planner.


*IFSA(2005) A Nation Exposed:Investigating the Issue of Underinsurance in Australia, Rice Walker Actuaries and TNS Australia, Sydney


The informaition provided in this blog is for general education puposes only and does not constitute specialist advice.  Because of this, you should consider the appropriateness of the advice to your situation, before taking any action.



Posted in: Insurance

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