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This page provides a brief outline of common types of Life Insurance that can cover many of your life risk insurance needs, both personally and for your business.
HOW MUCH DO I NEED ? A Simple Calculator for Life Insurance The amount of insurance needed can be estimated roughly by adding your outstanding debts and then factoring in an amount for lost income to the family. For example: Your Mortgage is $250,000 and annual income is $50,000 - for a typical family the credit card debt may be $2500..adding up the debts gives us a total of $252,500. To provide for your family, the lost income for a lifetime, we invest the proceeds into a secure term deposit at say 7% (estimate only).
Then an amount to provide lifetime income to your family is simply $50,000 divided by 7% = $714,285 By adding the debts ($252,500) a sum insured is arrived at $966,785 - at this point we remove amounts that may be released by unused assets sales and super entitlements to arrive at a final insurable amount. Obviously factors such as higher or lower returns and inflation need to be taken into account. This is where you need the advise of our planners.
Term Life cover is usually provided under a regular premium insurance policy which provides a lump sum benefit upon your death. For an additional premium you may be able to obtain Terminal Illness Cover which provides a lump sum benefit if you are diagnosed as being Terminally Ill. Typically the regular premium for Term Life cover will increase as you get older, as the risk of you dying or contracting a terminal illness increases. However, some policies provide a "level" premium which remains fixed until you reach a specified age, say 65, after which the premiums rise increase annually. Term Life policies are not savings plans. The terms and conditions applied to Term Life policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs. The terms and conditions applied to Term Life policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs. Income Protection insurance provides a regular, usually monthly, benefit if you are off work due to sickness or injury. This benefit is typically up to a percentage, say 75%, of your pre-disability income (net of business expenses but before tax) at the time of making a claim. If the insurance policy is terminated at any time the policy does not have a cash value and you will not get anything back. Additional benefits that can be available under an Income Protection policy include:
Exclusions or limitations may apply to the benefits you receive under an Income Protection policy. For example the policy may not cover pre-existing illnesses or injuries and may exclude injuries caused by pregnancy of childbirth, or by you personally or in other specified situations. Income Protection policies are not savings plans. The terms and conditions applied to Income Protection Policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs. Trauma Cover pays your chosen sum insured on the occurrence of one of a specified set of medical conditions or procedures. Typically a Trauma Cover policy will cover you 24 hours a day worldwide. You can take out a policy on your own life, or insure the life of another person such as a family member or business partner. Different insurance companies cover different events, medical conditions and procedures.
Note that some events, conditions and procedures may be excluded for a specified period after the commencement of cover. Trauma Cover policies are not savings plans. The terms and conditions applied to Income Protection policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs. Key Person Insurance policies can provide capital or revenue to help cover the costs of replacing a specific person in a specific role in the event of that person's death, disability or illness. The terms and conditions applied to Key Person policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to the needs of your business. Employers have the ability to provide benefits to attract and retain valuable staff through the use of Group Life, Group Salary Continuance, Group Crisis Care and Group Income Protection Insurance. Employers can add value by incorporating insurance cover as part of a comprehensive employee package. These forms of insurance can effectively cover all areas relating to death, disability and long term sick leave shortfalls. This form of insurance generally covers Death and/or Total and Permanent Disability (TPD). There is a limitation on the minimum number of lives per policy that varies between insurers. Takeover terms apply in most cases where a policy can be moved between insurers on terms no less favourable than the previous insurer offered. Some insurers offer additional benefits such as additional cover, spouse cover and more favourable definitions relating to TPD. This form of insurance offers a monthly income disability benefits of up to 75% of salary. There are a number of options relating to waiting periods. They can range from 30, 60, 90, 180, 360 and 720 days. Benefit payment periods range from 2 years, 5 years or even up to age 65. These vary between insurance providers. Takeover terms are also offered in relation to existing policies with other insurers. Many additional benefits are provided and vary between insurers. Group Trauma Cover |
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