- Posted 29 Sep
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Life insurance comes in many shapes and sizes in Australia. While the basic principal is the same (an insurance policy that will cover death or extreme traumas), there are a lot of different options that Australian’s have regarding both insurance policies and insurance premiums. So much so, that it can be confusing to know what is right for you.
To help make things easier, we’ve provided more information about the types of life insurance available in Australia so that you can understand and decide what is right for you and your family or situation.
Standard life insurance is the policy that most people are familiar with. It’s pretty simple; you buy a policy, and in the event you die or are diagnosed with a terminal illness, your family is given a lump sum. This money can then be used to cover funeral expenses, pay bills, and continue to maintain their lifestyle after you’ve gone without worrying about colossal debts.
Also referred to as critical illness insurance, this kind of policy is specifically for individuals who are diagnosed with a list of illnesses that would make working difficult or impossible. Whether it’s a heart attack, a stroke, or anything else on the list, this insurance policy allows those who experience these kinds of events to get help, reduce working hours, and spend time with those they love without worrying about how bills will be paid. Trauma insurance is often bought in conjunction with life insurance.
Income Protection Insurance
One of the primary worries for those who are involved in traumatic accidents or diagnosed with terminal illnesses is that they simply won’t be able to support themselves or their families any longer. This policy replaces up to 75 percent of the holder’s current salary, and in the event someone is permanently disabled, that replacement funding can go right up to the age of 65 (where retirement payments begin to come in).
Typically, income protection is ideal for anyone that is self-employed, but it also provides a good backup for anyone that is working, as it covers accidents and illnesses that are not covered by other insurance policies.
Total and Permanent Disability Insurance
When someone becomes permanently disabled and can’t work, total and permanent disability insurance pays out a lump sum which can then be used to take care of debts, provide that person with money to live on, and helps them get the care they need to keep going.
Business Expenses Insurance and Key Person Insurance
If someone owns his or her own business then they’re the masters of their own ship. But what happens when something goes wrong in this situation though?
Business expense insurance helps cover the costs of your business in the event you cannot continue working due to illness or injury, and it gives business owners some peace of mind as well, that the bills will still get paid.
Key person insurance does much the same thing, but it covers an individual who is critical to the success of a business. With one of these policies if someone else is injured or falls ill, then this policy will help keep a business going until a solution can be found.
It’s important to remember that with all of the different kinds of life insurance that Australian’s have to choose from, you are not limited to a single kind of policy. In fact ,those who are savvy about their life insurance and insurance premiums, may get several different kinds of policies to ensure they’re covered, no matter what kind of event occurs.
There’s no such thing as too much protection, particularly when it comes to taking care of one’s family, business, and lifestyle in the wake of tragedy. That’s why it’s important to consult an expert today, and to figure out which life insurance policy is best for you before it’s too late!
If you would like help with finding the right life insurance plan for you and your family, chat with our experts today and they will guide you in the right direction.