That's a horrible topic, but it's reality. For the sake of your loved ones you need to face it. How will they cope?
We will discuss more later about how to calculate the level of cover needed.
What happens if you are injured in a way that means you will never work again? Or, perhaps just that you will never be able to work in a job like the one you have now? For some that's worse than dying, but TPD insurance can help you cope with that situation, the lack of income and the mounting bills.
One of life risks that is much more common than others is that you might be injured or have a medical condition that puts you out of work temporarily. If you are back to work before your sick leave runs out, that's not too bad. However, it's not uncommon for that to extend for a long period.
That's where you need income protection insurance. It provides a replacement income after a specified waiting period, and pays that income until you are back at work or the insurance policy has reached its limit. That can be up to age 65, depending on what policy you qualify for.
The income stream paid by this sort of insurance policy is typically limited to 75% of your income plus a 10% contribution to superannuation.
Some serious health issues can take place that do not put you out of work. It might be cancer, a stroke, organ malfunction, heart attack or any number of other things. Ordinary TPD insurance and income protection insurance policies wouldn't be expected to cover such situations, and you are still alive, so the death cover provided by life insurance isn't going to do it either.
This is where trauma insurance is needed. It's often referred to as critical illness insurance. With this type of protection, the payout is based on the medical diagnosis, not whether or not you are able to work.
Click here to learn more about life insurance products and how to calculate your family's insurance needs.
• What types of life insurance are needed
• How much is needed
• What it might cost
• How to get personalised advice
• A financial adviser can help you see the full picture, including both insurance and wealth creation needs
• You can meet with your adviser in our offices, over the phone or on Skype.
Call us today on
02 4905 0250
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Professional financial planning advice will help you to get an appropriate level of life insurance cover to match your needs and budget.
At Grace Financial Services we are committed to looking after your best interests. That includes protecting the lives of yourself and your family through life insurance products.
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