Personal Insurance

Create a financial safety net for your family with our Personal Insurance
options that will protect your assets and income streams.

Income Protection: What Is It and What You Need to Know About It

I ncome insurance, also known as disability insurance, covers your income if you won’t be able to work anymore due to an accident or an illness that will take you months to recuperate. It also includes financial support to your family (e.g., school fees, allowance, mortgage) if you can never work again.

What the Statistics Reveal

  • Global income reports show that an average person will earn about $1million over his or her working life.
  • People in their early 30’s are ten times likely to suffer from injuries or die.
  • At an average, an income protection coverage pays a monthly benefit of 75% of a person’s pre-tax income (maximum amounts apply).

To have peace of mind for you and your family, it’s best to protect your income, more than your car or home. A variety of options are also available to give clients peace of mind and confidence in the insurer. Premiums are usually tax deductible.

Top Things to Know About Income Protection Insurance

If you decide to apply for this type of coverage, make sure to inquire and understand the following aspects:

  • Cover Amount - This includes the maximum and minimum cover amount per month.
  • Benefit Period - The duration for you to pay for the benefits. This may range from 1 to 65 years.
  • Waiting Period - This is the length of time you're going to wait before you start paying for the benefits.
  • Worldwide cover
  • Flexibility
  • Renewable and guarantees
  • Rehabilitation expenses benefits
  • Tax deductible premiums

By knowing these aspects, you'll be able to understand the basic and most important items of your coverage. Besides, this allows you to figure out the best plan that will suit your monthly budget.

Personal Insurance for Total and Permanent Disability

T otal and Permanent Disability insurance (TPD) gives a lump sum to insurees who suffer an injury or illness that leaves the person permanently and totally disabled. TPD insurance money is often used to pay off debts, pay for medical and hospitalisation expenses or support any permanent lifestyle changes due to disablement.

Recent Figures from the Australian Network on Disability

As per AND, the following disability statistics should be enough to encourage people to have TPD Insurance:

  • "Almost 90% of disabilities are not visible"
  • Physical disability is a common concern of up to 3.4 million (15%) Australians
  • “15% of Australians of working age (15-64 years) have a disability”
  • 78% of Australians with disability acquired their illness when they’re 16 years or older.

TPD: Definition and Coverage Information

TPD product providers differ in their definitions of what 'permanently and totally disabled' means. It is necessary to carry out your own research regarding these matters, as well as speak to a financial expert to be ensure you have a coverage that allows you to file a claim related to either of the following four definitions.

1. Being unable to work in your 'own' or 'any' work again.

2. Permanently unable to perform two of the following 'Activities of Daily Living' without physical help from someone else:

  • showering and bathing
  • undressing and dressing
  • drinking and eating
  • using the loo to carry out personal hygiene tasks
  • getting out and in of bed (or a wheelchair or chair)
  • moving from one place to another by wheelchair, walking or walking aid.

3. Inability to use limbs and loss of vision.

4. Suffer significant cognitive impairment (dementia-type illnesses).

'Own' or 'Any' Occupation Definition: Spotting the Difference

Most companies permit insurees to select what type coverage to when filing claims on being unlikely to be able to work in their 'own' occupation or in 'any' other job in the future, after experiencing an injury or illness. For example, a surgeon who injures her hands in a car accident may not be eligible for benefits under an 'any' occupation definition, as she is still qualified (and able) to work as a general practitioner.

However, if the surgeon has an 'own' occupation policy, she may be eligible to claim, as she is unlikely to ever work as a surgeon again. 'Own' occupation TPD provides a greater level of coverage. Your financial adviser will be able to help you choose the best definition for your personal circumstances.

How Much Does It Cost?

TPD premiums vary according to many factors including your age and occupation. A 30-year-old male electrician or female registered nurse could buy a TPD policy worth $639,356 for just $2.08 a day - or roughly the equivalent cost of a takeaway pizza once a week.

Based on an Asteron life Complete policy, non-smoker, stepped premium paid annually, Queensland resident, any occupation TPD.

How Much is Enough?

How much Total and Permanent Disability insurance you require depends on a number of different factors. Your financial adviser can assist you to accurately assess your circumstances and calculate the appropriate level of cover to protect you and your family.

Trauma Insurance (Critical Illness)

A traumatizing event or a serious illness can make it very difficult or even impossible for you to continue your work or your job. Trauma insurance is designed for these situations. It provides a financial safety net so that you can support yourself and your family in these scenarios.

Insurance companies maintain their own list of specified medical conditions that will make a significant effect in a person's life such as cancer, heart attack, and stroke.

Trauma insurance provides you with cover for such events. It pays a set amount so that you have available funds for the following:

  • Private medical costs besides your health insurance
  • income stream if you had to stop working
  • expenses for recurring therapy or special transports
  • adjustments to lifestyle and housing changes such as home modifications and rehabilitation
  • reduction in debt repayments
  • meet ongoing household expenses
If you're deciding whether you need trauma cover, think about the following first:
  • your health insurance level
  • any other type of insurance that you may have
  • how much income you and your family will need if you are unable to continue with your work.
It might also help to consider the following figures:
  • 2.6 million Australians ageing below 65 suffer from certain type of physical disability
  • roughly 60,000 Australians suffer from stroke per year and 88% of those who’ve survived lived at home with disabled

Personal Insurance - Child Cover

A s parents, it's natural for us to want to keep our children far away from anything that can hurt them, but children are just as much at risk of suffering traumatic event as adults. This is where child insurance can help you.

Child life insurance is a new type of insurance and although insurance money can't buy you a quick recovery for your child it can definitely ease the financial pressure you may encounter during these difficult times.

Child cover can provide you with a lump sum payment should your child experience a traumatic event or serious illness. This will enable you to take time off work to care for your child or it can help give you access to the best medical treatment to ensure that your child is as comfortable as possible.

Key Benefits for Child Cover:

  • It can be attached to an adult's life policy, income protection salary or it can also be a stand-alone trauma policy.
  • It has no limit on the number of children that can be insured under a policy
  • Your child can be offered a continuation policy once they turn 18 or 21, but this will depend on the insurer
  • It's paid upon diagnosis or occurrence of the illness or injury
  • It can be used to cover expenses such as seeking medical specialists, home nursing care, child care or school fees if you aren't able to provide while you're caring for your child.

Personal Insurance - Life Cover

L ife cover is one of the financial back-up plans your family should have. This gives you peace of mind during uncertain times and adversities. Besides, having this coverage gives you the confidence to grab every opportunity that comes your way without worrying too much on the risks.

Life insurance cover usually provides a one-off payment on your death or if you’re diagnosed with terminal illness. The money will be able to support your family, allowing them to continue their life without you.

With the one-off payment they receive, they’ll be able to:

  • focus on living life without worrying about finances
  • stay in the family home - pay off the mortgage or cover the rent
  • keep the kids at their school and make future education plans
  • on-going day-to-day living expenses

Basic Considerations When Choosing a Life Coverage

To determine how much coverage you need, make sure to consider all your recurring expenses, such as mortgage, credit card debts and personal loans. Then, your family’s lifestyle cost such as:

  • educational cost
  • car maintenance
  • health insurance
  • groceries and foods
  • insurance for home contents
  • rent

Once you’ve figured out the exact amount that best fits your budget, make sure to contact us to lodge your application as soon as you can.