Term Insurance

Term Insurance is the simplest for of Life insurance. It pays if death occurs during the term of the policy.
Level term means the death benefit remains the same throughout the duration of the policy
The proceeds of a claim could be used for example to
1)Cover the costs of bringing up children such as education and clothing etc.
2)Clear all debts so that the family is debt free as well as pay the funeral costs.

Total and Permanent Disablement insurance
TPD insurance is designed to prevent you and your dependants falling into financial ruin should you are unable to work again following permanent disablement. The lump sum benefit paid can help cover your cost of living expenses, the payment of your outstanding debts and any rehabilitation costs. It can be obtained as a stand alone policy or be made additional to a term insurance policy
TPD benefits are not normally paid until the disability you’re suffering from has affected your way of living for a six month period, or your insurer decides beforehand that you’re unlikely to ever work again. There are generally two definitions of disability to choose from:
1) Your own occupation means you specialise in some particular field and can no longer take part in this occupation ever again even though you may be capable of carrying out different duties for which you’ve never been previously trained.
2) Any occupation means that the illness or injury you’re suffering from prevents you from carrying out any type of work whatsoever.
Premiums are based on your age, your gender and your lifestyle habits, especially whether or not you smoke. Your occupation is also an important factor in that if you’re a manual worker you’ll have to pay a higher premium than an office worker for the same amount of cover. It’s also worth noting that different tax rules apply to TPD insurance premiums depending on whether the policy is held inside or outside superannuation.
Trauma Insurance
Trauma insurance provides a lump sum payment for serious medical conditions you may suffer such as stroke, cancer or heart attack. The full list of medical conditions differs with different policies. This cover can also be obtained as a stand alone policy or be attached to a term life insurance policy.
Trauma insurance is often referred to as living insurance, as well as critical illness insurance, as you benefit from having the cover while you remain alive as opposed to term life insurance where the benefits are paid to your beneficiaries after you die.
Trauma insurance is intended to make sufficient money available if you suffer from a specific traumatic event to enable you to do the following:
1) Avoid any financial stress adding to your physical difficulties by paying any credit card debts, car loan and even mortgages
2) Cover the cost involved in any renovations to your home to better suit your changed lifestyle
3) Pay for any specialist medical care or any necessary rehabilitation.
Although most trauma insurance policies are similar no matter which insurer you’re doing business with, some conditions may differ slightly, therefore it’s in your own interest to examine the policy thoroughly before you accept the cover. Most insurers cover you for between forty and fifty specific medical conditions and all cover you for the most common ailments such as cancer, heart attacks and stroke. This cover can also be obtained as a stand alone policy or be attached to a term life insurance policy
Income Protection insurance
Income protection insurance provides an ongoing benefit payment of up to 75% of your regular income if you are forced to take time off of work due to a serious injury or illness. Additional benefits may be included to cover your rehabilitation expenses.
Some key factors to consider when looking at policies include:
1) There is a waiting period involved before benefits start being paid. You can use this waiting period to your benefit in that you can have it finish when your employers sick pay ceases or when your savings are depleted enough. It’s usual for people to wait for two weeks, a month or three months depending on their particular situation.
2) You’re able to vary the length of time you want the benefits paid. This could be anything from two years to age 60 or 65.
3) You can have the benefit payments increase in line with inflation. This is an important factor as what might be sufficient today could well be insufficient in five, ten or twenty years time. This is known as a claims escalation option.
4) A day one accident benefit option is available if you take out a policy with a waiting period of 14 or 30 days. This means benefits will begin immediately and you’ll receive the money as back pay when your waiting period has expired.
The business expense benefit option can also be included if you feel its needed. This is especially provided for self employed people and it’s intended to pay all your fixed business expenses such as rent, phone, power etc. while you are unable to attend work in the normal fashion due to your illness or injury.