Taking out Cover
Taking out insurance
There are some key factors you need to weigh up when it comes to taking out an insurance policy.
Follow these simple steps to help you understand the different types of cover and levels of cover that are right for your needs.
1) Understand how much cover you need consider the level of cover for your needs by taking into account:
- Your personal debt (such as a mortgage or credit card debts),
- The future education costs of your children,
- How much you would need to cover your current lifestyle if you could not work for an extended period – or if you were never able to work again, and
- Whether you and your family have other financial resources you could draw on if you were unable to work or passed away.
2) Check what insurance you have through super
Get in touch with your super fund to know how much protection your fund provides.
If it’s insufficient for your needs, think about options such as increasing it, arranging directly held insurance or holding a combination of both.
3) Talk to a Consultant
Insurance is important for your financial wellbeing.
It is worth speaking to an expert who can recommend the products and level of cover that are right for you and your family.
Please fill in your details below and friendly consultant will call you immediately.
Types of Cover
What is it? Payable if you are unable to work at full capacity,or at all,due to sickness or injury.
Payment type? Monthly Replacement Income.
When do I need it? If you would find it difficult to maintain your lifestyle without your regular income.
Income Protection provides you with a regular monthly benefit designed to help cover your loss of income in the event you become sick or injured and are unable to work for an extended period. There are different ways to structure your income protection policy and you will have to choose the level of your benefit (usually up to 75% of your income) as well as the waiting period and benefit period. The waiting period relates to how long you must be unable to work before the benefit commences. The benefit period is the length of time the monthly benefits will continue to be paid, with the maximum benefit period generally being to age 65.
What is it? Payable on your death or terminal illness.
Payment type? Lump Sum.
When do I need it? If you have any debts and/or dependants.
Term Life Insurance provides a lump sum payment if you pass away or are diagnosed with a terminal illness. This benefit is designed to help provide your family with financial security and ideally will be sufficient to pay off any existing debts as well as providing funds to cover ongoing living expenses and other expenditure that will be incurred by your family and loved ones into the future.
What is it? Payable if you suffer a specified medical condition.
Payment type? Lump Sum.
When do I need it? The security of payment in the event you suffer from a debilitating medical condition.
Trauma Insurance provides a lump sum payment should you suffer any one of a number of specified serious injuries or illnesses, such as heart attack, cancer or stroke. The benefit is typically used to cover medical and rehabilitation expenses and to provide a financial buffer, but can also be used to reduce debt, cover lost income or allow you to concentrate on your recovery.
Total & Permanent Disability
What is it? Payable where you are unable to ever work again due to sickness or injury.
Payment type? Lump Sum
When do I need it? If you have any debts and/or dependants
Total and Permanent Disablement Insurance (TPD) provides you with a lump sum payment in the event that you suffer an injury or illness that is seriously enough to result in you being unable to return to work. The benefit is often used to repay existing debts, provide funds to help replace your loss of income and cover any potential medical or rehabilitation expense
Around $2.49 a day could provide Income Protection cover worth about $3,000 per month, and the premium may be tax deductible or $2.12 a day when payments are made through super^.
^Based on rates for Clearview LifeSolutions current as of Mar 2017. Cost based on Income Protection insurance for a 45 year old, non smoking, male administrator living in NSW paying a stepped annual premium, with a 30 day waiting period benefit to age 70, indemnity cover.
Take out cover worth $750,000 from around $1.94 a day, or $1.65 a day when payments are made through super+.
+Based on rates for Clearview LifeSolutions current as of Mar 2017. Cost based on Term Life cover for a 45 year old, non-smoking male, living in NSW, paying a stepped annual premium.
To receive honest, straightforward advice please contact us on
0421 767 187