Life Insurance

Total & Permanent Disablement

Also known as TPD, this provides a lump sum only if you are totally and permanently disabled before retirement. Because of this, it is no replacement for income protection. It is often sold as an add-on to another policy such as personal accident or provided as an extra benefit under a superannuation scheme.

Still, the conditions vary from policy to policy. Some definitions of disability are more restrictive than others, the payment is not always provided in a lump sum and sometimes comes in instalments over several years. Also, life cover usually ceases if a lump sum is paid out, leaving no money for dependents.

Income Protection

Your earning capacity is usually your greatest asset, but not everyone thinks to insure it. This cover can insure 75 per cent of your normal income if you are prevented from working through sickness or accident. It's particularly suitable for self employed people, and full-time employees for outside working hours accidents and sickness.

There are different policies available with different definitions of disability, some have time limits, some include accident not sickness and some are not guaranteed renewable when you get to a certain age. There are also different definitions of 'work'. For example, some provide cover if you can no longer do your usual job, others only provide cover if you are unable to do work of any kind. Some are indexed to inflation, others are not and so on

Trauma

Unlike income protection (above), trauma insurance provides a lump sum when you are diagnosed with one of several specified life threatening illnesses such as heart attack, stroke, cancer or one of the other sicknesses listed on the policy.

Some features to watch out for are:(a) the sicknesses and injuries specified vary from policy to policy; and (b) not all illnesses are covered, usually only the major terminal ones.

This cover is not a replacement for income protection, it should be viewed as an additional extra to be used to pay off debts and for rehabilitation purposes

Key Man

Covers the company in the event of the death or long-term disablement of a 'keyperson' - such as the owner or someone else critical to the business' continued existence.




			Life Insurance Term Life or Whole of Life Total & Permanent Disablement Income Protection Trauma Key Man Term Life or Whole of Life This insurance pays your dependents a lump sum if you die. Term life insurance is renewed, each year and tends to increase in price as you age. Whole-of-life cover is based on level premiums throughout but is more expensive because it includes a form of compulsory saving in the premium Total & Permanent Disablement Also known as TPD, this provides a lump sum only if you are totally and permanently disabled before retirement. Because of this, it is no replacement for income protection. It is often sold as an add-on to another policy such as personal accident or provided as an extra benefit under a superannuation scheme. Still, the conditions vary from policy to policy. Some definitions of disability are more restrictive than others, the payment is not always provided in a lump sum and sometimes comes in instalments over several years. Also, life cover usually ceases if a lump sum is paid out, leaving no money for dependents. Income Protection Your earning capacity is usually your greatest asset, but not everyone thinks to insure it. This cover can insure 75 per cent of your normal income if you are prevented from working through sickness or accident. It's particularly suitable for self employed people, and full-time employees for outside working hours accidents and sickness. There are different policies available with different definitions of disability, some have time limits, some include accident not sickness and some are not guaranteed renewable when you get to a certain age. There are also different definitions of 'work'. For example, some provide cover if you can no longer do your usual job, others only provide cover if you are unable to do work of any kind. Some are indexed to inflation, others are not and so on Trauma Unlike income protection (above), trauma insurance provides a lump sum when you are diagnosed with one of several specified life threatening illnesses such as heart attack, stroke, cancer or one of the other sicknesses listed on the policy. Some features to watch out for are:(a) the sicknesses and injuries specified vary from policy to policy; and (b) not all illnesses are covered, usually only the major terminal ones. This cover is not a replacement for income protection, it should be viewed as an additional extra to be used to pay off debts and for rehabilitation purposes Key Man Covers the company in the event of the death or long-term disablement of a 'keyperson' - such as the owner or someone else critical to the business' continued existence.