Whether you’re hoping to start your own family in 2019, pay down debt, or buy a house, our goals for the new year often have one thing in common: securing a solid future for the people we love.
But what happens when life throws a curveball? As much as we try to prepare for the unexpected, we can’t always prevent illnesses or accidents. Life insurance can help to protect your income and assets, and it’s more than simply death cover.
These are the major life insurance products you can compare at Life Insurance Comparison. This guide is intended as a brief overview to help you sort through your new year to-do list.
Income Protection Cover
Income protection cover is there to help you maintain an income if you are temporarily unable to work due to an illness or injury. It pays out a monthly, ongoing benefit of up to 75% of your income, so you don’t have to stress about making ends meet while you’re unable to work.
It provides you with a backup if something happens to put you out of work for a while, like a car accident or a necessary surgery. The kind of breaks that sick leave can’t cover, or that can be necessary for sole traders and the self-employed.
Trauma cover, or critical illness cover, pays a lump sum benefit if you are diagnosed with a major illness or suffer an injury. This payment can help to keep you financially afloat during your recovery.
The four most common events covered by trauma insurance include cancer, heart attack, coronary bypass, and stroke. Regardless of whether or not you are unable to work following a trauma event, trauma insurance can still pay a benefit. This, and the lump sum payment set it apart from income protection cover.
TPD cover stands for ‘total and permanent disability’ cover. It provides a lump sum benefit if you are totally and permanently disabled, rendering you unable to work again. This payment is intended to help you maintain your current lifestyle even if you are permanently unable to return to work.
You can claim on TPD cover for things like post-traumatic stress, injury following a major accident, or illnesses like heart disease and cancer. There are a few different ways TPD cover can be structured, which makes it customisable to your situation and budget.
Term Life Cover
Term life cover (also called just ‘life cover’ or even ‘death cover’) is what everyone tends to think of when they think about life insurance. If the policyholder passes away or is diagnosed with a terminal illness, a lump sum is paid out.
The idea of term life cover is to give your loved ones a safety net. Instead of worrying about money, they can focus on supporting each other and planning for the future. If the worst happens, the lump sum payment can relieve some of the stress left behind by mortgage repayments, debt and funeral expenses.
Unfortunately in Australia, as we get older the risk of potentially fatal illnesses rises significantly. Heart disease and various forms of cancer can be a huge threat to the stability of an Aussie family. Just last year for example, Cancer Council Australia estimated that 138,321 new cases of cancer were diagnosed. That’s 138,321 families across Australia who may now be coping with the possible loss of a loved one.
For families without term life cover, it’s a scary prospect. It raises the types of questions you don’t want to be asking when a loved one is sick, like How will we pay the mortgage and medical bills? Term life cover can offer some security in this uncertainty.
Start The Year Strong
It’s important to remember that the type of cover you choose should reflect what’s important to you. While we can’t tell you what cover you should get, we can help you understand these products, and find a great deal from our panel of 10 major insurers.
You can compare all these different products with Life Insurance Comparison. Whether you’re thinking about upgrading your cover, switching insurers or you’re just shopping around, our advisers are happy to help explain your options for cover, in all the forms it takes.
Start 2019 off strong, with cover that can protect your family’s finances.
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Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.