Personal insurance

If you are unable to work due to an accident or severe illness, income protection is a product that insurance companies offer that provides you a regular cash sum. This cash sum pays from 70% to 85% of your monthly salary for a fixed length of time (e.g. six months) depending on which income protection provider you choose. You can protect your income in one of two ways: agreed value, where you choose the amount you want to receive each month; or indemnity, where you must show your income at the time of claim (rather than during application).

Trauma cover, also known as critical illness insurance, may be able to assist you and your family financially in the event of a disaster. With a lump-sum payout, you can concentrate on getting the finest treatment possible, paying for rehabilitation, and, if required, reducing your work hours so that you can focus on recuperating and spending time with your loved ones.

Major head trauma, serious burns, and permanent blindness are among the illnesses and injuries, as are malignancies, heart attacks, strokes, Alzheimer’s, and major organ transplants.

Keep in mind that different trauma insurance policies may cover different conditions, and your condition must fulfil severity standards in most circumstances.

Trauma cover is essential to make sure a medical emergency doesn’t turn into a financial emergency as well.

Total and Permanent Disability cover protects you if you are permanently incapacitated as a result of an accident or disease and are unable to work in any capacity in any occupation based on your previous education, skills, training, or experience.

Total Permanent Disability Insurance cover pays you a lump sum payout, allowing you to access medical and rehabilitative therapies while also offering you financial security so you may continue to live your life to the fullest.

Total and Permanent disability insurance cover is defined differently by each insurance company, for example:

• Anyone who is expected to recover is not considered permanently impaired. As a result, they are not eligible for coverage.
• Milder conditions may also be overlooked when filing a claim. A loss of a finger, for example, may not be severe enough to prevent you from working. However, a limited benefit may be available for such an injury (e.g. 20 percent of a full payout).

TPD Insurance is available to anyone, however, the success of your application is contingent on a number of factors. Pre-existing medical issues, for example, may prevent you from obtaining coverage.

Life cover is often known as ‘term life insurance’ or ‘death insurance.’ When you die, it pays you a lump sum of money. The funds are distributed to the people you choose as beneficiaries.

Regarding the policy, If you don’t choose a beneficiary, the money is distributed by the super trustee or your estate.

Life cover may also include coverage for terminal illnesses. If you’re diagnosed with a terminal illness with a short life expectancy, you’ll receive a lump-sum payment.

Consider how much money you or your family would lose if you didn’t have life insurance:

• You might need to pay off the mortgage, credit cards, and other debts, as well as child care, school fees, and continuous living expenses

Also think of the funds your family would receive from super, savings, the sale of any investments, your paid leave balance, and extended family support.

The quantity of coverage you should get varies depending on how much cover you would need.