Why do I need Insurance?
Life Insurance Explained Simply. How the different life Insurance Products work together
1- What if you suffer an illness or injury?
Income Protection can help cover immediate household and debt expenses. Trauma cover can provide a lump sum to meet expensive medical and recuperation costs.
2- What if you don’t recover within 6 months?
Income Protection with a 2-year or 5-year benefit period can continue to help replace your income in the near term until you make a recovery.
3- What if your illness or injury is permanent?
Income Protection cover with a benefit period to age 65 can help provide long term income replacement of up to 70% of your income. TPD cover can provide a lump sum to pay off debts and to top up income protection payments.
4- What if you die or become terminally ill?
Death or term life cover can provide a lump sum to help your dependants pay off debts and provide the money they need to maintain their standard of living.
What are you trying to cover for?
Health Statistics show why there is need to be insured
It’s easy to say it won’t happen to me. But each year thousands of Australians are injured, suffer a serious illness or die unexpectedly. Statistics from the Australian Institute of Health and Welfare show that 1 in 3 men and 1 in 5 women die before the age of 70.
We also have health statistics from the following reliable sources:
Cancer Council Australia –
- 134,000 new cases of cancer will be diagnosed in Australia in 2018, rising to 150,000 by 2020
- 1 in 2 Australian men and women will be diagnosed with cancer by the age of 85
Stroke Foundation Australia –
- Stroke is one of Australia’s biggest killers and a leading cause of disability
- Stroke kills more women than breast cancer and more men than prostate cancer
- In 2017 there were over 56,000 new and recurrent stokes – that is one every nine minutes
- Around 30% of stroke survivors are of working age under the age of 65
- 65% of stroke survivors suffer a disability which impedes their ability to carry out daily living activities unassisted
Heart Foundation Australia –
- Heart Disease kills one Australian every 30 minutes
- Each year, around 54,000 Australians suffer a heart attack – equating to one every 10 minutes
- More than 100,000 Australians who have had a heart attack are under the age of 65
- One in six Australians are affected by cardiovascular disease, accounting for more than 4.2 million Australians.
Dementia Australia –
- Currently an estimated 250 people are joining the population with dementia each day.
- The number of new cases of dementia will increase to 318 people per day by 2025 and more than 650 people by 2056.
- Dementia is the second leading cause of death of Australians, contributing to 5.4% of all male deaths and 10.6% of females.
Beyond Blue –
- One in six Australians is currently experiencing depression or anxiety or both
- One quarter of Australians will experience an anxiety condition in their lifetime
How would your family cope?
The loss of family income and increased medical costs may force the sale of the family home, the sale of other assets or the running down of savings. Your hopes of giving your children the right start in life may be dashed. Your family may no longer be able to afford life’s little luxuries. Insurance can help you to protect against such a scenario.
We provide some case studies based on real life situations for the young and single, married without children, married with children and older couples approaching retirement.
If you were sick or injured or died unexpectedly would your family be able to afford:
The cost of a proper education for your children?
The monthly mortgage payment?
The cost of additional home help?
The living expenses of your current lifestyle?
Sufficient retirement savings?
How can life insurance policies help you?
Trauma Insurance
Trauma insurance pays a lump sum benefit should you be diagnosed with cancer, or suffer a stroke or heart attack. Some policies also cover conditions such as dementia. With 68% of people diagnosed with cancer still alive after five years, a trauma benefit payout can help cover the cost of expensive medical treatments and relieve financial stress so that you can make a full recovery.
Income Protection Insurance
For Income Protection Insurance it doesn’t matter what illness or injury you are suffering from, or whether it is short term or long term, if it stops you from working and earning an income you can receive monthly payments to replace up to 70% of your income until you recover. Most policies provide cover for mental health and back pain conditions, both of which can result in extended periods off work.
Total and Permanent Disablement Insurance
If it turns out that your illness or injury is permanent and you can’t ever return to work, as could occur following a stroke or heart disease, TPD insurance can pay a lump sum to support you and your family. TPD cover is often combined with Life insurance so that you will receive a payout on the first to occur of death or TPD.
Life (Death) Insurance
Life insurance pays much needed funds to your dependants on your death. Also most policies will pay you the benefit early if you are diagnosed with a terminal illness i.e. when doctors agree you have less than 12 or 24 months to live.
When should you consider whether you need insurance?
Any time is a good time to review your personal situation.
You should review your insurance needs regularly to take account of changes in your circumstances. Use our Life Insurance Calculator to estimate your insurance requirements.
There are certain events during life which should prompt consideration of cover such as
Getting married
Having children
Buying property or any other asset involving debt
Setting up a self managed super fund
Putting together a Financial Plan