Our ability to work and earn a living is regarded as a valuable asset, so having insurance that helps protect our financial assets makes good sense. With so many different insurance policies available, knowing which type of insurance will meet your needs can be a complicated business.
Understanding what kind of cover you’re really getting from your insurance is important for protecting your financial future in the event of an accident or illness.
Insuring yourself basically means that if you die, or are terminally diagnosed, a one-off lump sum is paid to your spouse or dependents to lessen the financial hardship they may face due to your death. Life insurance can help cover any outstanding debts, or help secure your children’s education. A good financial back up plan if you have a family and want to secure their financial future.
Total and permanent disability (TPD)
TPD insurance provides financial cover if you become totally or permanently disabled and can no longer perform your own or any other type of work. A one-off lump sum payment provides financial assistance to you and your family to cover debts, provide special care assistance and replace your income. Total and permanent disability eases financial burdens as a result of your inability to earn an income and ensures your family continues to maintain their existing lifestyle.
Trauma insurance provides cover for a range of critical illnesses and conditions that seriously impede your ability to work. Depending on the illness and whether that illness is covered in your trauma policy, a lump sum is payable when confirmation of your medical condition is diagnosed. Trauma insurance cover ensures your medical costs; lifestyle or employment changes and household debts can be met while you receive treatment without the added financial stress and negative long-term impact of your financial welfare.
You can choose to have the three insurance products listed above as stand alone individual cover or you can bundle all three together in one policy for complete peace of mind and financial security. You also have the option to insure through your super fund to take advantage of wholesale rates, but there may be conditions of release when making a claim. Speak to your financial advisor about the different types of insurance and benefits of buying inside or outside of superannuation.