What are you covered for?

If you took out your policy a few years ago, you might be hard-pressed remembering the finer details of your policy – especially if you chose multiple cover types.

Here’s a refresher of what the main types of life insurance are, and how they can help.

  • Life cover. A lump sum paid if you die or are diagnosed with a terminal illness. A family might use this money to pay off debt, pay medical and funeral bills, and provide a future source of income.
  • Total and Permanent Disability (TPD) cover. A lump sum paid if you become totally and permanently disabled. This money can be used to cover the long-term costs of care and rehabilitation, and eliminate debt.
  • Trauma cover. A lump sum paid if you suffer a particular serious illness, for example cancer or an injury such as paralysis that’s covered by your policy. This money helps you cover out-of-pocket medical expenses, and eases short-term financial pressure while you recover.
  • Income Secure cover. A monthly benefit that replaces a percentage of your income (usually up to 80%) if you can’t work because of sickness or injury. This helps you keep up with day-to-day bills and living expenses. Premiums are generally tax-deductible.
  • Living Expense cover. For people that don’t have an income (e.g. home-makers and retirees), this pays a monthly benefit to help your family cope financially if you are disabled by sickness or injury.
  • Business Expense cover. For business owners, this pays a monthly benefit to cover fixed business expenses (like rent, lease payments, insurances etc) if you can’t work because of sickness or injury – so you can keep the business running. Premiums are generally tax-deductible.

The right combination of cover types, and how much you need, will depend on a number of factors – including your life stage, and your other financial commitments.

That’s why it’s so important to seek regular financial advice as your circumstances change.

If it’s time for a review, make an appointment with your financial adviser or call us on 133 667. One day it could make all the difference.