Should an illness or accident occur, how long can your loved ones carry on without you being in the picture? How would they maintain the family home & pay for everyday bills?
What is Life Insurance?
Life Insurance pays a nominated lump sum benefit in the event of your death due to illness, accident or natural cause – assisting you to secure your family’s way of life & financial future. Life Insurance is necessary for families with financial commitments.
In Australia, every 3 minutes and 36 seconds, one death is recorded.i
33% of women and 25% of men will be diagnosed with a malignant cancer during their lifetime.ii
Over 1,600 people die on Australian roads every year with the majority aged between 26 to 59 years.iii
Close to 50,000 deaths per year occur due to cardiovascular disease which represents 1/3 of all deaths in Australia.iv
Life Insurance secures your loved ones future financial position in case the unfavourable happens. They can benefit from a lump sum payment that you have nominated for them. Yet, so many Australians do not seek protection because of some common misconceptions regarding life insurance;
“I have enough savings”
60% of families with children under the age of 18 will go through their savings within a year of the main income earners death.v
"My Life Cover in my default super fund will suffice”Life Insurance within a super fund is only 20% of the cover that is actually needed.vi
“It doesn’t matter; I’m not the main income earner”
Child care and home help provided by a ‘stay-at-home’ spouse could be worth more than $75,000 per year.vii
What do the payments protect?
Having the correct cover ensures your family could maintain their lifestyle if you were no longer around.
A lump sum payment is critical to help meet the following expenses.
Home maintenance costs.
Day-to-day expenses: Everyday bills can really stack up. Without been able to earn an income, a lump sum payment can help cover everyday living expenses such as food, utility payments, clothing and schooling.
Children’s future: The cost of a growing family is not cheap. Life Insurance will help and secure your children’s future schooling and provide comfortable up bringing that you want them to have if you are no longer around.
Retirement protection: A lump sum payment helps your family protect their retirement so they don’t have to jeopardise their savings.
Funeral costs: Funeral costs can be very expansive. With Life Insurance your loved ones can afford these costs.
What are the cover features?
Below are just a few features you can expect to have with your Life Insurance.
If you’re diagnosed as terminally ill, more than likely you be unable to work which means less household income. You may therefore be eligible for an early payment.
Potential access to an advanced payment to cover funeral costs.
Additional benefits, the Guaranteed Future Insurability benefit lets you increase your benefit without having to provide extra medical evidence.
What are the cover options?
Below are just a few of the options you can expect with your Life Cover:
Inside or outside super: You may be able to structure your Life Cover inside super and pay premiums using pre-tax dollars. There are often restrictions with this structure, so it’s important you talk to one of our financial advisers.
Choice of premium options: ‘Stepped’ premiums increase on a yearly basis in line with your age, while ‘Level’ premiums remain the same until age 65 (at this point, they convert to Stepped).
Causes Of Claim
How do I get protected?
One of our financial advisers can help tailor the right level of cover for your needs.
Save yourself one less worry and contact one of our agents today or request a quote from us.
i ABS (2011) Population Clock, www.abs.gov.au/ausstats/abs, viewed 12 March 2012
ii AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra
iii Australian Government (August 2008) Road Deaths Australia: 2007 Statistical Summary, Road safety report no.1,
Department of Infrastructure, Transport, Regional Development and Local Government, Canberra
iv AIHW (2011) Cardiovascular disease: Australian facts 2011, Cardiovascular disease series no. 35, Cat. no. CVD 53, Canberra
v IFSA (2005) A Nation Exposed: Investigating the Issue of Underinsurance in Australia, Research study commissioned by
IFSA and conducted by Rice Walker Actuaries and TNS Australia, Sydney
vi IFSA (2005) A Nation Exposed: Investigating the Issue of Underinsurance in Australia, Research study commissioned by IFSA
and conducted by Rice Walker Actuaries and TNS Australia, Sydney
vii IFSA (5 October 2005) Australian mothers – undervalued and underinsured, Media release, Sydney