Insurance

You, your beneficiary, or your legal representative will need to call or write to your insurer. You’ll be sent a claim form to complete and return back to them, along with proof the insured event took place. Your insurer may also ask your doctor (if applicable) to fill out a form. If you want to make a claim on your policy, you should do so as soon as possible, ideally within 120 days of the insured event taking place.

Policies may have certain ‘exclusions’. An exclusion (sometimes called a special provision or special terms) on your policy is a specified event that’s not covered by your policy. For example, depending on your insurance cover provider, you will not be covered for death or a terminal illness resulting from a self-inflicted injury for the first 13 months of your policy. Also, if you’ve disclosed any existing health conditions, or lifestyle activities that are deemed hazardous or risky during your application, then you may find that a death or terminal illness resulting from these may also be excluded from cover.  It’s always a good idea to check your insurance contract (also called a policy schedule) to know everything that’s not covered by your policy.

Insurance cover provides peace of mind your financial security will be protected should unforeseen events arise.  It is reassuring to know that should anything happen to you, your loved ones won’t be left in a financially difficult situation.

When taking out insurance, you generally have a choice between a stepped and level premium.

Stepped premium – your premium increases every year with your age as well as annual inflationary and policy fee increases.  Stepped premiums are more cost effective in the early years of the policy and become more expensive when you get older.

Level premium – your premium generally does not change (with the exception of annual inflationary and policy fee increases) and is based on your age when the policy commences.   Level premiums are more expensive in the early years of the policy, but can provide considerable cost savings if the policy is held for a long time.

While stepped premiums are usually lower in the early years, level premiums can be a more cost-effective option if you retain the insurance over a longer period. If insurance cover is only required for a short timeframe, a stepped premium may be more appropriate and cost-effective

Your insurance premium will depend on a number of factors including how much cover you apply for, your age, state of health, occupation.

For income protection it will also depend on your salary, the waiting period you nominate before receiving a claim benefit and how long you want the benefit to continue (2 years, 5 years, to age 65 or 70).

To assist with cashflow, death, TPD and income protection cover can be funded using your superannuation however it is important to consider what impact this will have on your retirement savings in the future.

Often people wonder how much insurance cover is enough. Well, this is a difficult question and depends on many factors, such as debt and lifestyle preferences.  Affordability of the cover also needs to be taken into account.  We can assist you determine the most appropriate level of cover to meet your needs.

Life Insurance (death cover)

Life insurance can provide a lump sum to your estate or a nominated beneficiary in accordance with your directions if you die within the duration of your policy.  The cash lump sum may also be advanced if you are diagnosed with a terminal illness and have less then twelve months to live.

Total and Permanent Disability Insurance (TPD)

TPD pays a lump sum if you are totally and permanently disabled. This money can help replace your income, cover your medical expenses plus rehabilitation costs, and generally keep you and your family running during a difficult time.

Trauma Insurance (also known as Critical Illness or Recovery Insurance)

Trauma cover provides a lump sum when you are diagnosed with one of several specified conditions, such as heart attack, cancer, stroke and many others.

Income Protection Insurance (also known as Sickness and Accident Cover)

Income Protection will pay you a percentage of your pre-tax income if you can’t work due to illness or injury. This money could go a long way to keeping your household, or your business, running while you concentrate on your recovery.