How much Life Insurance do you need?

What better way is there to prepare for the future than to get life insurance? However, getting a life insurance policy is one thing. Figuring out how much coverage you and your family need is another.

So, the question is: How would you be able to compute just how much life insurance you need?

Below, I’ve written up simple guidelines that will help answer the question above.

Computing how much Life Insurance You Need

1. Keep an annual planner.

Insurance coverage is context-dependent. In other words, just how much you need to cover for your expenses depends on your circumstances. Keeping an annual planner will give you a clue on the exact figures of how much you really need.

Take into account all expenses that you incur such as loans, car and house mortgage, payment for utility bills, food, and others.

2. Obtain some help from life insurance calculators.

How much coverage you need would also depend on the balance between your expenditures and your income. The more bills you’re paying off, the higher coverage you might need.

Our insurance calculators can help you figure this out.

  • Life insurance needs

In the unfortunate event that you are unable to work (either from death trauma or illness), this will give you an approximate amount of how much insurance you need to cover for your expenses.

If you can’t work due to a debilitating condition, this will give you an estimate on how much coverage you’re eligible.

Financial adviser explaining life insurance coverage to clients


Wrapping up, though a higher coverage might mean you have to pay for a higher premium, this isn’t always the case. Your financial adviser can give you the best options on the right personal insurance packages for you that’s within your budget.

How much TPD Insurance do I need?

TPD Insurance is one of the most important covers you can have, primarily if you work in a high-risk occupation or deal with heavy, life-threatening machinery. Let’s take a quick look at everything you need to know about this highly-convenient insurance cover.

What is TPD Insurance?

TPD stands for total and permanent disability and is a cover that pays you a lump sum in the event of total or permanent disability. The definition of TPD varies from one life insurance company to another, meaning you must go through the terms before agreeing to receive a specific level of cover from one insurer.

How much TPD Insurance do I Need?

The amount of TPD cover depends on your financial situation. While your income protection policy will take care of your continuous earnings once disabled, your TPD claim will help you tackle medical needs and other debts that you might be unable to settle because of the disability.

Your TPD policy can provide a lump sum to help you cater for immediate and follow up medical costs. A TPD cover can also pay off your personal debts that you were committed to repaying before the injury, and it can also help offset your mortgage payments. 

TPD insurance acts as your super fund that helps you to take care of costs such as home renovations to allow for increased mobility by making your house wheelchair accessible through ramps and other modifications.

Other Considerations

Always check the definition of TPD from your preferred insurance agency as the description normally differs. Make sure you understand what the policy caters for and the limits. Having such an understanding will help to avoid complications in the event of disability

It would be best if you also considered purchasing TPD as part of a life insurance cover as opposed to buying it as a stand-alone product. Combining it with a life cover will be more cost-effective in the long run.

What does an Insurance Broker do?

An insurance broker is someone who specialises in risk management and insurance. A qualified broker has in-depth knowledge of all aspects related to risk management. These aspects include risk management, the insurance market, and the insurance policies that are available to their clients. 

Brokers act on behalf of their clients and consult with them to identify the personal or business risks they face. Then, they help their clients manage their risks and protect their assets through insurance or other ways. 

In some cases, a broker acts as an agent of an insurer. A broker may also specialise in a specific type of insurance, for example, property insurance or life insurance. 

Ideally, a broker should know the benefits, exclusions, and terms and conditions of competing policies so they can help their clients find the best one for their needs. If their clients want to file a claim, a broker will also assist them with the procedure and technical advice. 

How to Choose a Broker 

Unlike an insurance agency, an insurance broker represents you and your interests. A broker will negotiate the insurance price for you. The advantages of choosing the right broker are that you will have sufficient coverage for your property, and you will not end up with a hefty repair bill when disaster strikes. 

To choose the best broker, start by determining the coverage you need. Use the National Insurance Brokers Association (NIBA) Need-a-Broker service to find a broker in your area with a license and a NIBA membership. Make sure that the broker you appoint has the necessary know-how to help you with your insurance requirements. 


The insurance broker you choose in Australia should have an Australian Financial Services (AFS) license. A broker can also be an authorised representative of an AFS license holder.

Additionally, all brokers should meet the Corporations Act 2001 (Cth) (Corporations Act) standards. In terms of their AFS license, brokers also have to be members of an authorised external dispute-resolution scheme. The Australian Financial Complaints Authority (AFCA) resolves matters between brokers and their clients, and brokers have to adhere to this organisation’s decisions.

How is Trauma Insurance different from Total Permanent Disability Insurance?

What is Trauma Insurance?

Trauma insurance provides cover for a predetermined range of diseases, which includes events like heart attacks and cancer. These short-term life insurance products are designed to tide you over while you recover.

If you have an insurable incident, the provider will assist you with money to cover your current expenses. They also usually cover rehabilitation and medical treatment costs that your medical aid excludes.

It’s essential to speak to your financial adviser and find out precisely what illnesses the policy covers. The cover amount may differ depending on the disease diagnosed. 

The plan will come into effect as soon as you are diagnosed.

What is Total Permanent Disability Insurance?

The total cover provides an income or lump sum payment for when you become permanently disabled. It is designed to assist you with meeting your expenses if you are unable to work. It’s essential to check when your payouts are likely to come into effect.

There is sometimes an obligatory waiting period after the accident. In the interim, you’ll need to cover your expenses.

Disability policies offering job-specific coverage costs more, but the upside is that you’re covered if you can’t operate in the field.

Other policies only cover you if you’re unable to do any form of work. If you’re a surgeon and lose one hand, nothing stops you from becoming a janitor.

From this perspective, costlier job-specific policies are more secure.

What is the Difference?

The primary difference is at the policy payout.

Trauma insurance doesn’t need disability to claim, but not all illnesses qualify. The cover is there to help you while you’re recovering from treatment.

Disability insurance needs you to prove that you cannot work—either in your own or all professions, depending on your policy terms. The type of illness or injury doesn’t matter if you can no longer work.

For example, if you return to work after a massive heart attack, then it doesn’t count as a disability. It’s the reason many people purchase both types of cover simultaneously.

Feel free to contact us for a professional consultation if you have any further questions.

What is Key Person Insurance?

key person insurance

What Is Key Person Insurance?

The most crucial asset of your business is its people. Talent keeps the operation moving forward. Specific employees are so vital the business would be crippled without them.

It can be a frightening scenario when key staff can’t perform their duties due to illness or death. It happens suddenly, and the business is left unprepared.

Protecting yourself from this situation is sound financial planning. Key Person Insurance is invaluable since it protects against the sudden loss of key personnel, such as a founder or director.

How Does it Work?

Key Person Insurance works similarly to regular life insurance, but with one primary difference: it is owned by the business, not by an individual policyholder. The company pays the monthly premium, and their contributions make them the direct beneficiaries of this type of insurance.

If a key employee dies or physically can’t work, the business receives the insurance benefits. The added funds can then be used by the company for capital or revenue purposes to counteract the loss of key staff.

The insurance coverage also includes paying for the cost of recruiting and training new talent to replace the business’s losses.

key person insurance

What Can It Cover?

The insurance coverage is typically taken out on key personnel. These are the people whose skills and expertise are invaluable to the success of the organization.

The insurance covers any natural condition that renders the person unable to perform their duties for the company. It can include death, complete or partial disability due to trauma, or a severe medical condition.

Key Person Insurance FAQs

Is Key Person Insurance taxable?

According to the Australian Tax Office, it depends on whether the benefit is used as revenue or capital.

Revenue is tax-deductible as an insurance premium. When claimed, it becomes taxable.

Insurance proceeds used for capital purposes are not tax-deductible.

How much is the monthly cost?

It depends on many factors, such as age, occupation, term length, and other aspects.

Things you should know about high risk Life Insurance

high risk life insurance

The concept of life insurance in Perth is not different from what you get in other parts of the world. You have a job or you run a thriving business. You also have a family and you want to ensure that you provide for your beneficiaries in case the unexpected happens. The smart move here is to take out a life insurance policy. 

Understanding High Risk Life Insurance

Insurance companies are not in business to lose money. Before any insurer will offer you a life insurance policy, you need to undergo a few tests. These tests will determine if you are a relatively healthy person. In addition, your profession and your personal habits matter. If you work in a dangerous industry, you might fall under the high risk life insurance category. The same thing applies if you smoke cigarettes or cigars. 

What Happens to High Risk Clients

In extreme cases, insurance companies might deny you life insurance if you fall under the extremely high risk category. However, in most cases, you will qualify for high risk life insurance if you meet certain conditions. Below are ways potentially high risk clients can get life insurance policies.

high risk insurance client

Change of Lifestyle

If you smoke two packs of cigarettes daily and you want to purchase a life insurance policy you are definitely a high risk client. Your insurer will insist on a test to ensure that there is no damage to your lungs or other vital organs. If your vital organs are still in good shape, you can get an insurance policy if you give up smoking or cut down on the number of cigarettes you smoke. 

Health Issues

Some medical conditions can be controlled or even reversed with the right diet and regular exercise. For instance, if you are denied life insurance because your cholesterol level is too high, you can do something about it. Just embrace the right diet and your cholesterol level will crash. Now, apply again for the same insurance policy and you will definitely get it. 

Risky Professions

If you are a pilot, a soldier or a commercial driver, you definitely fall under the high risk life insurance category. Now, you cannot give up your job in order to purchase life insurance. Your insurer will insist on a high premium because you are a high risk candidate.

high risk profession

Final Word

You can get a life insurance policy from reputable firms like Absolute Insurance. Just log on to for more information. You can also call us and we will be happy to serve you.

What are the benefits of having Business Expense Insurance?

Income Protection

There are lots of things to consider, when running a business, and although the rewards can justify the risks, you are never too far away from a new obstacle. Many entrepreneurs do not think about what would happen to their businesses if they became ill and were unable to work for several months. Business expense insurance, sometimes called business overhead insurance, will safeguard the company you have put your heart and soul into. 

While the precise cover provided differs depending on the insurer, business expense insurance usually offers the benefits below:

Partial Disablement

These benefits are paid if you can only do a small quantity of your usual work, due to a partial disability. The payments will start after a waiting period, and you will keep receiving them until you recover.

Complete Disablement 

You receive this benefit if you can not work at all, due to total or partial disability.

tpd insurance claims

Additional Benefits

Numerous business expenses insurance plans feature particular injury benefits, which guarantee specific benefit payments for a predetermined time period after you are injured in a certain way. Crisis benefits might be included too, which offer guaranteed payments if you are diagnosed with a range of severe medical problems.

Business expense insurance will pay benefits for as long as a year. This affords you the freedom and time to recuperate, and choose whether you wish to resume your venture or put your business on the market. Another key advantage of this type of insurance is that it can allow you to resume working every week, for a specified number of hours (normally ten) – without your benefits being affected.

The majority of business expense plans are provided with reimbursement clauses, which ensure that you will get money each month to cover your business overheads, as you incur them. Other plans only cover a company’s fixed costs, which include loan repayments and ongoing office expenses.

Of course, you could manage without business expense insurance if you have the capital to keep your company running, while you recover from an injury. Nonetheless, there are many small business owners, sole traders, partnerships with five or fewer members, and consultants who depend on services delivered to generate income, who do not have this luxury. 

Better still, while receiving your monthly payments, you will not be charged for your business expense cover. This way, rather than fretting over your company’s financial health, you can concentrate on improving your own health at your own pace. Contact Absolute Insurance today for more information and professional assistance.

How to find the right insurance broker for you

Tips on How to Find an Insurance Broker

Life is full of uncertainties and death is the only guarantee you get after you are born. Can you imagine the financial situation of your family members if you are the sole breadwinner and die suddenly? You can prevent them from facing a financial crunch by purchasing a suitable life insurance plan.

What is life insurance?

Life insurance provides a cover for your life. If you suffer from a serious accident and become disabled or if you die prematurely, then you can depend on a life insurance policy to help you out. The insured amount along with applicable bonuses can help to pay your medical expenses or compensate your lost income in case you are no longer able to work. In case of your death, the money is provided to your nominee or your dependant.

Different types of life insurances

There are several types of insurances including:

• Standard (also referred to as “term life insurance”)

• Total & permanent disablement

• Income protection insurance

• Trauma insurance

Which one should I opt for?

The common person might face problems determining the type of insurance suitable for them. A slight mistake in selecting insurance can result in disaster. In such a scenario, your best option is to find an insurance broker of repute.

Income Protection

Advantages of discussing with an Insurance Broker

Such professionals have access to competitive policies from a diverse range of insurance companies and can often get hold of policies, which are unavailable to the general public. These professionals act as your personal advisor on insurance related matters. Instead of working for the insurance company, they work for you to ensure that your business, your possessions, and your family are protected properly. In case of your untimely demise, the broker will help your family members by guiding them through the claim process, ensuring that that they receive a fair and swift settlement by your insurance company.

Your friend in need

Brokers provide expert advice on your individual insurance needs. For them, your interest comes first, unlike other providers who just want to sell you a policy. It is this emphasis on the needs of their customer rather than their own, which sets brokers apart from other insurance options.


These professionals have a wealth of knowledge on all aspects related to insurance. They will try to get you all the discounts available on the insurance you purchase. Reputable insurance brokers such as Absolute Insurance know everything about risk assessment as well as how to safeguard the interest of your family with respect to business, home, personal, and auto coverage. Contact Absolute Insurance today for all your life insurance requirements.

Can you buy Life Insurance for a family member?

Family Life Insurance

Family Life Insurance

Everyone should have life insurance. If you pass away, and you don’t have a life insurance policy, your family members will be responsible for the cost of your funeral. It will also give them the extra money that they need to pay off your debts. If your loved one doesn’t have an insurance policy because they cannot afford it or they aren’t old enough to have their own policy, you can take one out for them. If this is something that you are considering, there are a few things that you should understand.

Do I Need To Tell My Loved One That I’m Taking Out a Policy?

If you are taking out a life insurance policy on a loved one, they need to know. First, the individual is going to need to give the insurer a detailed list of their risk-factors such as their health, family medical history, their age, and occupation. Your loved one might also need a medical examination and a blood test before the policy is finalised.

Who Can I Purchase a Life Insurance Policy For?

You can buy an insurance policy for your spouse or your children; however, there are other people outside of your immediate family who insurers will allow you to buy a policy for.

• Your Parents: If your parents don’t have life insurance, you could end up paying for their funeral when they pass away. Taking out a policy will save you money in the long run. If you are thinking about buying a policy for your parents, you should do it soon. The older they are, the more expensive your premiums will be.

• Your Partner: You don’t have to be married to someone to buy an insurance policy for them. If you are with someone but not married, you can still buy a policy for them. In cases like this, you would need to choose between an individual policy and a joint policy. Joint policies are cheaper; however, they pay out just once. These policies are only available to couples with similar risk profiles. An individual policy would pay out for both people, and they can be purchased regardless of your risk profiles.

• Business Partners: Taking out a life insurance policy on your business partner will protect your business if they should die.

• Key Employees: Taking out an insurance policy on a key employee whose knowledge or contributions to the company are uniquely valuable to the company can protect the business.

• Additional People: If you can prove that the death of another person will cause you to suffer on a personal or financial level, some insurers will allow you to buy these policies on a case by case basis.

If you are living in Australia and you are worried about the financial ramifications when someone dies, you should consider buying them a life insurance policy. Absolute Insurance understands the importance of family. Contact them today to get the policy for your loved one.

Buying life insurance for a family member or someone else is the responsible thing to do. If the worst happens, you will be happy that you did.

What is Key Person Insurance?

Income Protection

What is Key Person Insurance

One of the most important types of business insurance is known as key person insurance. Although not talked about that much, losing a person who does a lot for a small business suddenly can cause a lot of issues. This is when this type of insurance can kick in and protect a business.

Why Have Key Person Insurance?

When a business only has a smaller amount of employees, chances are the business owner, and a least a couple of the employees, are extremely important. They are relied on so much that if something were to happen to one of them, it could cause the business to fail. Key person insurance is designed to protect those businesses if something bad happens to one of those key individuals.

Most policies are going to allow up to three people to be protected. A business owner is almost always going to include themselves unless they are extremely passive when it comes to the success of the company. After that, employees who are either at the executive level or those who have a specific skill set that is nearly impossible to replace, are usually listed on the policy.

Like a lot of insurance policies, one of the major benefits of this coverage is to have peace of mind as a small business owner. Even successful businesses that have a small number of employees are just one disaster away from potentially failing. This is an important policy to have to protect against that. These insurance policies can be tailored quite a bit to fit specific needs for business owners as well.

What Does Key Person Insurance Cover?

Benefits for key person insurance include total disability, elective surgery, death and more. Basically, anything that could keep a key person out for at least 30 days (with some policies, 90 days) will be covered with this type of insurance.

Once the insurance kicks in, KPI can provide a lot of benefits for the business itself. It does a good job of keeping things going to business as usual, as much as possible. Also, the insurance policy can be combined many times with other insurance policies to reduce costs associated with it. Upgrades are given after a set amount of time too, which is perfect for a policy like this that is really designed to cover for a specific type of disaster.

Key Person Insurance in Perth

Most businesses hopefully never have to use this policy. If something bad happens though, this could be one of the most important types of insurance to have. It protects the most important people of the business, keeping small businesses from turning south in a hurry. Consult Absolute Insurance today. They provide a client-focused solution to a range of insurance services for businesses in Perth.