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While safeguarding our finances is very necessary, it is also important to have safeguards and support in place for our lives. The best way to achieve that is to purchase life insurance. In Australia, life insurance still does not cover as many people as it should. In addition, many people with life insurance do not have sufficient levels of life cover.

Purchasing life insurance for the first time can be complex, which is why our advisors at Cover Australia are here to give you a helping hand and advise you on the life insurance options that are available and best suit you.

 

Term Life Insurance  – An Easy Way for Purchasing Cheap Life Insurance

One form of life insurance that is worth considering to assist you in times of need is term life insurance.

A Term Life Policy will pay a lump sum benefit in the event the life insured passes away while the policy is in force. Alternatively, it will pay a benefit if the life insured becomes terminally ill and is diagnosed with less than 12 months to live.

To determine the coverage you need to purchase this policy, you would need to assess your current expenses and debts, as well as future ones. Depending on your circumstances, you might need to give a medical test too.

Purchasing term life policies is essential for people with dependant family members. This is especially so if the policyholder happens to be the main breadwinner for the family. If the policyholder were to pass away, the family would unfortunately lose its main source of income. This would result in more than just an emotional loss. It could also result in financial hardships and uncertainty for the family.

Because there are so many considerations to take into account, you would need to consult your insurance adviser to assist you in obtaining the right amount of cover for your situation. 

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Is Life Insurance needed when there are no dependants?

If you have no dependents or financial obligations in your life, you might have no need for life insurance. You might feel that securing income protection insurance is more suitable because it would ensure that you have the funds for managing your living expenses if you become ill or injured, and are as a result, unable to work.

Many people in Australia buy income protection insurance to assist them if they are unable to work because of an illness or an accident, though there are other important factors to take into account before dismissing your need for life insurance options.

The most important factor to note is that life insurance can help ensure that your debts and funeral expenses are covered, even if you don’t have any dependants. You can trust that any loose ends will be tied up when you have adequate life insurance in place.

 

The Types of Premiums Available in Life Insurance Policies

Once you are ready to buy life insurance, your insurer might ask you what kind of premiums you would prefer to pay. Usually, life insurance companies in Australia offer two kinds of premiums. These are:

Level Premiums

Level premiums remain fixed for the same sum insured, regardless of your age. When you fill an application form for life insurance, the insurance company calculates your premium rates at the time of the application. The insurer would then lock in this rate for the lifetime of your policy (unless there is an across the board rate change, something that doesn’t happen very often).

Therefore, say you purchased a life insurance policy of $500,000 at 25 years of age, your premium would remain the same for that $500,000 even when you are age 50. Level premiums tend to become more affordable the older you get and can offer significant cumulative savings over time.

Stepped Premiums

Stepped premiums, on the other hand, keep rising as you age. This is because the likelihood of you reporting a claim increases with your age – especially as your health would start deteriorating as you age. These premiums are more affordable when you purchase the policy, therefore this is the preferred option for people who have a limited disposable income. 

What Factors Affect the Premium You Pay for Life Insurance?

It is vital to take all factors into account that will affect the premium you will pay for life insurance. The premium structure you decide to choose would determine the premium you need to pay. However, there are other factors, which have a significant bearing on your premiums as well. These include:

• Your Gender: Data shows that men have a higher risk of suffering from adverse medical conditions later in life. Hence, they pay higher premiums than women do.
• Your Age: The older you become, the greater your premium would be.
• Your Health: If you suffer from some pre-existing medical conditions, your premium rates would be higher.
• Your Lifestyle: If you smoke or consume alcohol regularly or have a higher Body Mass Index (BMI) than the average person, your premium rates would be higher.
• Your Occupation: If you work in high-risk environments, you might need to pay heavily loaded premiums or face difficulties in obtaining insurance.
• Your Hobbies: If you enjoy dangerous hobbies like bungee jumping, you would need to pay a higher premium.

When you are ready to take life insurance seriously and consider purchasing a policy, speak to one of our advisers at Cover Australia to discuss your options. We would be more than happy to help you!

 

Cover Australia – Your Partners for Life Insurance Solutions

At Cover Australia, we have over 30 years of experience in providing clients with various insurance solutions. From product and premium comparisons to customising insurance solutions to meet your requirements, we do it all. We also offer sound professional advice.

Therefore, whether you need to compare life insurance quotes or purchase a trauma insurance policy, we have the expertise you could rely on. Call us at 1300 366 817 to obtain peace of mind for yourself, in addition to security for your loved ones.

If you look at the terms and conditions of a trauma insurance policy, you would find that:

• Only an Australian citizen or a permanent resident can purchase it
• The individual (or proposer and policyholder) must be from 17 to 59 years old and,
• The individual (or proposer and policyholder) must be residing in Australia at the time of application

Thus, if you meet these criteria, have you purchased your trauma insurance cover yet? If not, you could be tempting fate. Lack of trauma cover could have grave repercussions for your family as well as for you.

 

The Odds You Face when it Comes to Suffering from a Disability or a Critical Illness

According to the Australian Network on Disability, one out of every five Australians suffers from some disability. That amounts to about four million people. This means that nearly 3.6 million people have no disability insurance policy. Critical illnesses comprise a variety of conditions. Therefore, the prevalence of these conditions and the number of people having trauma insurance make their numbers even worse. According to the Heart Foundation of Australia:

• Cardiovascular diseases kill one Australian every 12 minutes
• Cardiovascular diseases affect one out of every six Australians (about 3.7 million people) and two out of every three families
• Cardiovascular diseases prevent around 1.4 million Australians from leading normal lives because of an illness-induced disability
• Coronary heart diseases affect about 1.4 million Australians

Similarly, the Cancer Council of Australia states that:

• An estimated 128,000 new cases of cancer will emerge in Australia in 2014
• One out of every two Australian men and one out of three Australian women would have cancer by the age of 85 years
• More than 60 percent of people diagnosed with cancer will survive for five years after the initial diagnosis
• Cancer costs more than $3.8 billion in direct health system costs and cancer research comprises 22 percent of all health research expenditure in Australia

Clearly, critical illnesses do not just lead to a loss of life. Before the eventuality occurs, they also bleed their victims dry of financial earnings by affecting the victim’s ability to earn a livelihood. Treatment costs and lifestyle changes add on to the expenses, thereby creating a vicious cycle from which hardly anyone can emerge successfully.

 

How Trauma Insurance Could Help You in these Adverse Circumstances

With a trauma insurance cover, your insurer would pay you a lump sum amount if you suffer from a critical illness. However, your insurance company must cover the critical illness that you have. Several insurance companies cover a range of 20 – 30 medical conditions. These include Alzheimer’s Disease, deafness, dementia, coma, Parkinson’s Disease etc. You could use this lump sum payment to cover your treatment and lifestyle change expenses. You could also use it to meet your daily living expenses.

Like with all life insurance policies, the policy sum insured increases each renewal with indexation. With indexation, the insurers would increment the sum insured based on the highest percentage increase in the consumer price index. However, policyholders can decline indexation to keep sum insured the same as at inception and to keep premium cost down.

In some cases, life insurance companies also offer trauma cover and life cover buyback options. The buyback options enable the policyholder to reinstate the benefits once the insurer pays the claim.

Thus, trauma insurance does not only cover a wide range of conditions. It also covers any debts and liabilities of the insured. This is even in cases where the insured needs to take some time away from work – because of the illness.

 

Cover Australia – The Insurance Specialists in Australia

To compare life insurance, TPD insurance, Trauma insurance or compare income protectionin Australia, Cover Australia is the best. Our expertise does not remain confined to comparing products and premiums. We also specialise in offering free professional advice, along with outstanding service at all times. With over 27 years in the domain, we have a great insight into the life insurance industry. That’s why any advice you take from us will factor in your requirements and circumstances.

While expertise and aspects like income insurance comparison are our forte, our Platinum Partner program gives us a unique competitive edge over all our competitors. Under this program, you gain access to high quality products and services that exceed industry standards, from some of the leading life insurance companies in Australia. No one else can provide you with this benefit other than Cover Australia. Therefore, secure yourself from all risks. Speak to your friendly insurance adviser at 1300 366 817 today.

We all tend to take our bodies for granted, and often put too much faith in the ability of our bodies to progress us through life; however, we also know that illness or injury is always a possibility.

Even if we take the time to eat well, exercise and look after our bodies, unfortunately we never know if things will take a turn for the worse.  Serious illness or injury could strike at any time which is why having appropriate Insurance cover is needed to ensure we are financially secure in times of need. We all consider insurance options such as health insurance, life insurance and income protection insurance, but have you ever considered Total and Permanent Disability Insurance?

A comprehensive TPD Insurance policy is the best option available to protect you and your family against the financial stresses of becoming totally and permanently disabled and unable to work and earn an income. As financial advisers, we can explain what TPD insurance is, how it will benefit you and offer recommendations on the level of cover and type of policy that best suits you.

 

Australians Statistics on Disabilities

Unfortunately the reality is that suffering from a serious illness or injury is life changing and permanent incapacity and the inability to work causes financial stress on you and your family’s lifestyle. You may be surprised how common it is for such a situation to occur.

The Australian Network on Disability (AND) focuses on helping people with disabilities back into the mainstream of life as suppliers, customers and employees. They have some valuable statistics that are very telling about disability in Australia:

• About one in every five Australians suffers from some type of disability (this equates to over four million people)
• Nearly half of those who suffer a disability are of working age, from 15 to 64 years
• Australia ranks 21st out of 29 OECD countries for people who suffer with disabilities and still participate in the labour force
• 39.8 percent of disabled people are employed while 79.4 percent of people without any disability are employed in Australia
• About two-thirds of people with disabilities earn less than $320 per week, compared to one-third of the general population

It is clear to see that the prevalence of disability in our country is relatively high, which is why having support and safeguards in place is so vital. There is no better way to do this than to purchase TPD insurance which is specifically designed to protect individuals should they suffer illness or injury resulting in permanent disability.

 

Total and Permanent Disability Insurance – Why You Need It

Most people would jump to the conclusion that when they buy life insurance, they give themselves sufficient levels of protection. They feel that their life cover would be more than enough for dealing with any eventuality. This might be the case in the event of their death however it does not take into account all the add-on expenses for treatment, ongoing care, lifestyle changes and rehabilitation brought on by a disability.

A total and permanent disability insurance policy pays a lump sum amount if the policyholder becomes disabled to the extent where doctors deem the disability as both total and permanent. Such disabilities generally mean that the individual would never be able to work again. However, the definitions of this cover could vary between the different insurance companies. Therefore, to gain a complete understanding of what your policy covers and excludes you would need to read the terms and conditions of each policy or go through this with your adviser.

Individuals with a disability not only need to meet their daily living expenses. They also need to face the fact that they would not be able to return to work again. The expenses involved when inflicted with a disability can also be fine. For example, a disabled person would also need to pay:

• Hospital Expenses
• Medical Expenses
• Additional care expenses
• Rehabilitation Expenses
• Expenses incurred because of specialist treatment or medication
• Expenses incurred because lifestyle changes e.g. modifications to the home and vehicle etc.

Meeting daily living expenses is difficult enough but if you suffer a disability, it becomes even more difficult. TPD Insurance helps people who have become disabled meet these expenses. It also helps the family of the incapacitated individual continue to maintain their current lifestyle. Given that disabilities affect one out of every five Australians, this cover could be invaluable for you and your family.

 

Determine the Cover You Need for TPD Insurance

Many may find it difficult to work out how much cover you and your family would need if you became totally and permanently disabled. But this is not something to stress about as your financial adviser specialises in assessing your individual financial circumstances and objectives and determining the right amount of cover for you. We can determine the appropriate amount of cover for you by allowing for:

• All your current financial commitments including living expenses, bills and debts
• Your future obligations
• Cost of additional care due to disability
• Meeting emergency expenses

Once we have discussed these details with you, we can explain to you how we calculated our recommended level of cover. Alternatively, if you feel there is a specific amount of cover you require, we can go straight to comparing TPD insurance policies and finding the one that best suits your needs.

It should also be noted that TPD insurance is different from Income Protection insurance. Unlike income protection insurance which provides an ongoing monthly benefit in the event of a short-term or a long-term disability, TPD cover provides a single lump sum benefit in the event of a total and permanent disability. The good thing about having both TPD insurance and Income Protection insurance is that claiming on one policy has no effect on claiming on the other. So in the event of total and permanent disability, you can claim both the lump sum benefit from your TPD insurance policy as well as the ongoing monthly benefits from your Income Protection insurance policy.

 

The National Disability Insurance Scheme is not TPD Insurance!

As the government rolls out the NDIS, awareness of disability insurance has become more common amongst Australians. Whilst this is a positive initiative from the government, it is very important not to confuse the NDIS with the TPD Insurance that can be arranged through your financial adviser.  

The NDIS does not pay a lump sum benefit in the event that you are unlikely to work in any occupation again and it does not provide regular income payments that assist in maintaining your current lifestyle. The NDIS provides “packages” to disabled people aiming to assist with personal care, domestic assistance, any home modifications, aids, etc.

TPD Insurance will provide you with a full lump sum benefit in the event of total and permanent disability. Your financial adviser can hold a critical role here in determining the amount of cover required to meet your objectives and maintain your current lifestyle. Alternatively, you can nominate the amount of insurance you think is necessary for you and your adviser can compare TPD Insurance policies to see which product best suits your needs. In the event of total and permanent disability the lump sum you receive can be used at your discretion to meet your lifestyle needs. There are no limitations on how you use your benefits as applied to the NDIS.

 

Cover Australia – Your Experts in Life Insurance!

If you are looking for a comparison from several companies for total and permanent disability insurance, turn to Cover Australia, one of the leading life insurance experts in Australia.

For over 30 years, we have been advising and serving all Australians about life insurance products and solutions. We offer you the best advice and service. We also focus on providing you with the cover you need – Whether it is trauma insurance, TPD insurance or Income Protection insurance. Call us on 1300 366 817 for an insurance solution tailored to your requirements.

Have you ever considered what life would be like if your source of income was cut off? Perhaps you were injured or you fell extremely ill and were unable to work – do you have cover in place to protect you and your family’s finances if the worst were to happen?

This is why there is a great need for Australians to compare income protection insurance and take out a policy that will provide you the best cover when you are unable to earn an income due to injury or illness.

If you have never considered income protection Insurance before, you may be pleasantly surprised by the benefits that can be provided by having this cover.

However, before diving into the deep-end of purchasing income protection insurance, there are many important factors that need to be considered to ensure you are purchasing the right policy for you and your needs.

 

Why Income Protection Insurance is so important

Many Australian’s may come to the realisation that they do not have enough protective measures in place should they no longer be able to work, which is why income protection insurance is becoming increasingly sought after in our country.

Unlike other forms of insurance that can provide a lump sum payment, this particular form of cover is specifically designed to meet the costs of your day to day living expenses.

Income Protection is designed to replace up to 75% of your income in the event of you not being able to work due to illness or injury after a pre-defined period time, known as the waiting period.

It is not hard to see how this type of insurance can make a difference to your life if your income stream was cut off for a period of time.

 

Income Protection Insurance Considerations

When you begin to compare income protection insurance policies available in the market, you will soon find that choosing the right policy is not a simple task. Every insurer creates their own income protection product and as such, they all have varying definitions and conditions.

It is important to consult with an adviser who is able to take your personal situation into account and appropriately recommend a product and insurer that is right for you.

The complex nature of income protection means that there are many ‘non-core’ benefits that exist within each product. You will find that once you have spoken with an adviser, you will be made aware of extra features and benefits you never realized were included.

It is also important to take factors such as the waiting period, benefit period and benefit type into account and your adviser can provide recommendations on these based on your individual financial circumstances.

 

The Waiting Period

One of the most important things to consider when establishing an income protection policy is the waiting period.

The waiting period is defined as the amount of time you must be unable to work prior to going on claim and thus prior to receiving monthly benefits. As you can imagine – the shorter the waiting period, the more expensive the premium will be.

The waiting period can vary from as little as 14 days to as much as 2 years. There a many things to consider when selecting the appropriate waiting period such as any sick leave you may receive from your employer and how long any savings or assets you have could provide an income to cover your cost of living. Therefore, it is important to discuss your options with an adviser.

 

The Benefit Period

Another core component of an income protection policy is the benefit period. A benefit period refers to how long you will be eligible to receive your monthly benefit should you go on claim. Benefit periods range from as short as 1 year to expiring at age 70 at selected insurers.

The benefit period is also a key determinant of the premium – the shorter it is, the cheaper the premium gets.

 

The Benefit Type

Another aspect of income protection insurance that is crucially important is whether you choose an agreed value or indemnity benefit type.

With an agreed value policy, you prove your income at the time of application and as long as you have earned enough in the 12 months prior to this, your monthly benefit is guaranteed.

An indemnity policy means that you will have to prove that you have earned enough in the three years prior to the illness or injury leading to your disability in order to satisfy the monthly benefit you have. If for any reason your earnings drop after you have taken out an indemnity policy, you won’t be able to claim your full benefit.

An adviser can assist you in weighing up the pros and cons of each benefit type and help you assess how they would apply to your individual circumstances. If you are on a tighter budget, indemnity policies are a less expensive alternative to an agreed value policy.

However as previously mentioned, this is because at claim time you may not be entitled to receive the full benefit you are insured for if your income has decreased. If you are an employee with a steady income, this may not be of great concern to you. However if you are self-employed and your income is subject to fluctuations in the profits of your business, it may be wiser to lock in the certainty of an agreed value policy.

Your adviser can discuss this in more detail with you and compare the finer details between different insurers.

Once the waiting period, benefit period, and benefit type has been considered, you will be one step closer to having the security of income protection insurance in place.

 

Find the Best Income Protection Insurance

When it comes to comparing income protection insurance, it is important that you take some time to speak to an adviser who has the expert knowledge and experience in this area.

One of our insurance advisers from Cover Australia can help you choose the policy that most closely matches your unique needs as well as your budget.

Income protection insurance is a must have for many working Australian’s because it can provide peace of mind should you be unable to work. The income that you receive is invaluable at a time where your expenses will have increased significantly.

When comparing income protection , our advisers at Cover Australia have the expertise to provide you with the right cover to suit your needs. Call us at 1300 366 817 and we can ensure that you have the income protection insurance that you have been looking for.

Are you underinsured? There are so many insurance options available, it can be hard knowing what insurance options you need – alternatively, you may deliberately decide to avoid certain types of insurance for various reasons.

Too many people in Australia are underinsured and there are many reasons for this: some of the major excuses for avoiding life insurance or income protection insurance is that it is too expensive, insurance companies don’t pay out, you feel you do not need the insurance, or it is too difficult to find and purchase the cover you need.

However, there are even more reasons why more Australians need to seek life insurance and income protection insurance to safeguard their financial well-being.

 

Why you Need Life Insurance and Income Protection Insurance

One of the major reasons for not purchasing insurance cover is that many people feel they do not need the insurance. You may be surprised by how these insurance options could benefit you.

Some people may avoid purchasing income protection insurance because they expect to receive compensation from their Worker’s Compensation policy; however, the Worker’s Compensation policy only covers accidents or illnesses that arise as a direct consequence of your employment.

If you have an accident or if you fall ill outside of work, worker’s compensation will not cover you, which is where income protection insurance comes in. An income protection policy provides a replacement income if the policyholder is unable to work because of an illness or an injury, and is provided in the form of a lump sum payment.

When it comes to life insurance, the avoidance usually occurs because people do not often think of the financial needs of their loved ones after their death, especially if they are young.

However, the reality is that Illnesses, chronic conditions and injury can occur for anyone and it could potentially lead to an untimely death. This is why it is appropriate to purchase life insurance at any age.

A life insurance policy will pay a death benefit if the policyholder dies or is diagnosed with a terminal illness and has less than 12 months to live. We believe that the aim of life insurance is to provide the deceased’s family and loved ones with sufficient money to repay their debts, continue to maintain their standard of living and achieve any further financial objectives they require.

 

Insurance Claims

Some people can be critical of insurance companies when it comes to paying out insurance claims, however this negative view is often unfounded.

Commonwealth bank is one of the life insurance and income protection providers that we compare using our comparison service. Based on their analysis of data shared by several life insurance companies in Australia, they found that in 2010, an average payout of $14.3 million was paid to 245 Australians for each business day by these life insurance companies.

This data serves to debunk the myth that insurance companies seldom pay their policyholders the benefits mentioned on the policy. Any legitimate claims that abide by the terms and conditions of the policy purchased are likely to be paid out. If you divide the $14.3 million benefits paid to 245 people, it amounts to approximately $60,000 per person per working day. This is a very significant amount of money.

 

Financial Benefits

Many people may avoid certain insurance policies due to the cost, although the benefits provided often outweigh the cost involved in making an insurance policy purchase.

Every year, thousands of people suffer an injury, contract an illness or die unexpectedly. If this were to happen to you today, how would your family cope with the emotional upheaval as well as the financial uncertainty? For example, how would they pay for:

• The monthly mortgage or rent
• Living expenses
• The cost of education for your children
• Any other liabilities like loans, credit cards etc

This is what you need to ask yourself before deciding to turn down the option of insurance cover. When you undertake life insurance and income protection comparison, you can have security knowing you are one step closer to having financial security for your family when it is needed most.

 

Cover Australia Makes Insurance Easy to Understand

The last reason many people steer away from insurance is because it is too hard to pick and choose the most appropriate amounts and types cover for their needs. This is where the experts at Cover Australia come into the picture.

For the past 27 years, Cover Australia has been a leading provider of insurance solutions to many Australians. We provide advice and guidance that addresses your concerns completely. We also provide superlative levels of service. Additionally, we have the requisite experience to individually tailor life insurance products to your needs and budget.

These traits make us one of the most professional and knowledgeable risk advice firms in Australia. We will compare life insurance products for you and offer the best solution to fit your needs

Avoid putting off buying life insurance. Invest in your life today. Call us on 1300 366 817 for more information. Have peace of mind knowing that Cover Australia will be at hand to tide over any financial difficulties your family might face.