In the event of your death will your loved ones be covered financially?

The level of life insurance cover you will need depends on your individual circumstances and this is where we are able to guide you through the process.

When calculating the amount required we will take into consideration expenses such as paying off your mortgage and other debts, general living expenses such as childcare and education and the cost of running a household.

Various sources such as superannuation, shares, savings and existing insurance policies may offset the amount of cover you require.

Income protection insurance pays you a benefit if you are unable to work for a certain period of time because of illness or injury. This is generally paid monthly, but can be paid as a lump sum in certain circumstances.

Policies will insure you for a set percentage of your current regular income (commonly up to 75% of your gross salary) for up to a certain duration known as the benefit period. In the event of a successful claim, your income protection insurance will be paid after the relevant waiting period, as specified in your policy, for example 30 days. After the waiting period, the policy should pay you until you are able to return to work.

Total and Permanent Disability (TPD) cover pays you a lump sum if you become totally and permanently disabled. This could help cover the costs of rehabilitation, debt repayments and the future cost of living.

The definition of total and permanent disability varies between insurance companies, but it generally means that you are disabled to the extent that you will probably be unable to work again.

When determining the amount, we will work with you to understand your living expenses, repaying debts and mortgage, medical and rehabilitation costs, and any savings you want for retirement.

Trauma insurance can provide a lump sum of money to help you meet medical expenses and other financial needs when you have suffered a medical trauma.

While the type of medical traumas covered will differ between policies, some of the more commonly-defined events are cancer, heart attack and stroke.

Unlike Income Protection, Trauma insurance will be paid to you in a lump sum with no waiting period. It can be used to support your living expenses as well as your partner and or family during the recovery period and/or treatment.

It's common to think if you already have Income Protection you don't need Trauma cover, however there are circumstances where you may not qualify for an Income Protection payment, but you will qualify for Trauma payment.
This is due to the fact that while you are getting treatment- cancer for example- you will generally not be away from work long enough to meet an Income Protection waiting period requirement however your income may reduce.

Depending on the severity of the Trauma event, treatment costs may also be a factor.

One other thing to remember is that people who have experienced a significant health event in their lives generally want to take additional time away from their weekly routine and be able to come to terms with their diagnosis or spend time with their loved ones.