Why do I need Insurance?

Life Insurance Explained Simply. How do the different life Insurance Products work together

1- You Suffer An Illness Or Injury

Income Protection or Trauma Cover will help cover immediate expenses including medical costs


2- You Don’t Recover Within Six Months

Income Protection with a 2-year or 5-year benefit period will replace income in the near term.


3- Your Illness Or Injury Become Permanent

TPD Cover plus Income Protection cover to age 65 will pay off debts and replace income long term

death insuran 4 3

4- You Die Or Become Terminally Ill

Death or term life cover will provide a lump sum to your beneficiaries to maintain their standard of living

What are you trying to cover for?

  • All of the covers have a role to play
  • Think what are your priorities in this situation

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 75% 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