Understanding Income Protection Insurance

Income Protection

Australians are often confused about life insurance policies. People typically find it hard to see the wood for the trees. Consequently, lots of us do not fully understand the advantages offered by these policies.

Income Protection Cover in Focus

Income protection cover will pay you as much as seventy-five percent of your income each month (before tax) if you are not able to work because of sickness or injury. Claimants will have to undergo a benefit period and a waiting period. Furthermore, you are allowed to add benefits for rehabilitation, which are intended to get you back into work quickly.

Based on your insurance company and policy, you can have full control over choosing your income protection insurance. You can decide how much of your salary you will receive, up to a specified limit. Also, you can choose the period of waiting prior to receiving your money, and the time period over which you will be paid — all based on your chosen policy.

Calculating your core financial obligations will allow you to determine how much of your salary you need to become financially independent. Income protection cover will allow you to maintain your income at this basic level. As a result, your monthly expenses can be paid as usual, while you concentrate on recovering so you can get back to work.

Income Protection
Sustain your existing lifestyle. Income protection cover is ideal for people who worry that they will need to dramatically alter their lifestyle and daily routine if they get injured or sick.

The Advantages of Income Protection

Carry on repaying your mortgage. Here are the ‘motivators’ that caused Australians to purchase income protection cover:

Mortgaging their house (forty-six percent of those surveyed)
Having children (thirty-five percent of those surveyed)
Ageing (twenty-nine percent of those surveyed)

Once they sign their home loan contract, new homeowners are taking on a large debt. Lots of these loans take years, or decades, to repay. If you fell ill and couldn’t work any longer, could you still make these repayments?

Don’t drown in debt, even if you lose your regular income. If you fall ill, you’re other debts and expenses don’t go away. Actually, you may go further into debt, because of cost recovery.

You can manage these expenses easier with income protection. Absolute Insurance is here to help you protect and make the most of your wealth and health.

Concentrate on recovering. Financial worries are not nice when you are recuperating from injury or sickness. Actually, any stress could hinder your recovery. Surely, things would be easier if you could focus solely on regaining your health?

Sustain your existing lifestyle. Income protection cover is ideal for people who worry that they will need to dramatically alter their lifestyle and daily routine if they get injured or sick. Based on your medical condition, this could be unavoidable. Nonetheless, your circumstances will seem less problematic if you can minimise any financial disruption.

If you haven’t taken out workers’ compensation, your illness or injury might qualify you for this. That is fine; however, the money you receive from income protection will be reduced, to take into account your workers’ compensation payout. Notwithstanding, income protection is a useful backup plan, if you cannot claim workers compensation.

An Insight Into Personal Insurance

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What is Personal Insurance?

Personal insurance is a special kind of cover that is tailor-made to offer security to an individual and their family when risks arise. Such risks include illnesses, disability, and even death. With an insurance cover, one can absorb the financial strain caused by the risks and sort out their daily expenses.

Different kinds of insurance covers are available to clients today. Insurance covers are particular when it comes to the risks they cover and the enforcement policy. Understanding how the various policies works are, therefore, essential before taking up any insurance cover.

Life Insurance

This is one of the oldest types of insurance covers. The primary goal of the policy is to cover life. Once an individual takes up the cover, beneficiaries receive a lump sum amount upon the death of the policyholder.

The policy offers a guarantee of financial security to beneficiaries in the event of death. The policy also incorporates a savings clause. The savings element is very beneficial to the policyholder. It enables them to purchase and negotiates better terms of their pension arrangement to enjoy more financial benefits in the future.

Total and permanent disability (TPD) insurance

This is a policy that is disability oriented in the sense that, the policyholder receives a lump sum amount as compensation if they become permanently disabled. The policy offers protection from injuries that are as a result of accidents or even illnesses that hinder a person’s full working capacity. For the policyholder and beneficiaries, it offers financial relief for the family when misfortunes arise and the policyholder is rendered disabled.

tpd insurance claims
Protect your income so you and your loved ones can enjoy financial security. Get in touch with Absolute Insurance today to know more about Personal Insurance.

Critical illness or trauma

Medical illnesses can be devastating both psychologically and financially. The critical illness insurance policy pays a policyholder a lump sum amount of money if they are diagnosed with a traumatic medical condition. Such conditions include cancer diagnosis, heart disease or even stroke.

Compensation from the policy offers a vital source of funding that helps the policyholder foot their medical and other financial bills as they seek treatment for their ailments. The good thing with taking up the cover is that you enjoy the benefits while you are still alive.

Income protection insurance

This is a very strategic cover which most people tend to overlook. The cover offers financial security to the policyholder in the event of temporary unemployment. Temporary unemployment may arise due to misfortunes such as injury or even illness that can leave one unable to work temporarily.

During periods of unemployment, financial obligations can quickly end up overwhelming an individual. One may be forced to even result in using their savings to cover for their day to day expenses. Such spending may leave one broke and with no form of financial security.

An income protection policy offers an individual the much needed financial backup during such trivial times. Emotional and financial stress is relieved, and one can weather the storm before getting back to the employment bandwagon. You never know when unemployment will strike. Taking up such a cover is, therefore a decision which any employed person should take seriously.

In the event that you need to find out more about Personal Insurance, get in touch with us today. We are happy to meet you anywhere in Perth and talk about how our insurance solutions can help you.

Superannuation Advice For All Ages

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Superannuation Advice

Your super is probably one of the most valuable things that you will ever own, but most Australians don’t pay that much attention to it until it is too late. A survey recently revealed that a whopping 50 per cent of Australians have never consulted a financial planner or taken any other step towards securing their financial future. That’s too high!

Thankfully, there are practical steps you can take to secure your super throughout your working life and beyond. Consider the following superannuation advice:

1. Consolidate Your Super

Many 20 and 30-somethings bounce around from job to job until they discover where their true passions lie. Each job involves its own super account, meaning that you could have multiple accounts charging you multiple fees without any real benefit to you. If you merge all of these accounts into one, you can save on fees while pursuing a more streamlined investment strategy.

That said, there are certain scenarios where consolidation does not make sense. If you would be assessed a substantial exit charge, you may be better off leaving your money where it is. Likewise, some super accounts provide affordable insurance that it would be a shame to just give up.

2. Choose Your Investment Strategy

Many Australians never specify how they want their super money invested, a course of action that usually results in a balanced strategy no matter what your financial needs may be. When you’re young, it can be beneficial to choose an aggressive option that takes on greater risk for the possibility of higher returns. If the investment goes south, you still have time to recover.

You should also change your super strategy as your needs change. For example, older individuals may want a more conservative approach to avoid the total loss of their nest egg.

superannuation advice
Take the steps today to build your superannuation so you have more freedom tomorrow.

3. Look Into Government Support

Australia’s tax code allows for some creative bookkeeping when you contribute to your super that may help you save money on your tax bill. There are income requirements, partial payouts, and other restrictions, so it’s probably a good idea to consult with a professional to see if you can get some bonus money in your account.

4. Increase Your Contributions

If possible, you may wish to voluntarily donate to your super above the 9.5 percent of your income automatically contributed by your employer. This is best done in your 40s and 50s when the kids are heading off on their own and your earning potential is still high.

If you left the workforce to raise a family, spousal contributions allow your spouse to contribute to your super to make sure that you have enough money for your golden years. There may be some tax benefits in it for you as well.


If you’re looking for more specific advice, Absolute Insurance is a Perth owned family business who specialise in offering a range of insurance services from Perth to Mandurah. Contact them today for more information!

TPD Insurance Claims

tpd insurance claims

TPD Insurance Claims

Frequently Asked Questions

Typically, TPD coverage offers financial advantages to people who cannot work in their normal occupation any more, or any other job role that they are qualified for because of poor health, or physical or mental disability.

People who are injured severely, or who did not have a job when they became disabled, might be subject to different rules. In these situations, people are normally defined as being unable to care for themselves, or unable to perform basic living tasks like walking, cooking, bathing or dressing.

Am I Eligible for TPD (Total and Permanent Disability)?

To receive TPD payments, you will have to demonstrate that your illness or injury prevents you from holding down a job, and that you cannot carry on doing your regular job or any other role that matches your education, expertise or training.

In contrast to other injury claims, if you claim for TPD it is not necessary to show that the illness or injury was someone else’s fault, or that you became disabled at work.

For instance, if you are a cancer sufferer, or have a mental health problem like schizophrenia and cannot work, you can still get benefits. You simply have to prove that the illness or injury is notable and has prevented you from earning a salary, or has significantly affected your ability to perform day to day activities.

How Much Money Will I Receive?

As long as you satisfy the appropriate criteria, you can get your insurance benefits and gain early Superannuation access. Such payments might come in one go, or in frequent installments.

As far as the amount of money that might be paid, this is based on the kind of insurance policy you have, and the amount you are covered for. Normally, these details are mentioned in the small print of your statements or policy.

Most of the time, these payments are offered alongside Centrelink payments and other compensation you might receive for the illness or injury.

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What Proof do I Require for TPD Insurance Claims?

All claims need supporting medical documents, demonstrating that you satisfy the conditions for TPD. Physicians will have to be comprehensively briefed about the associated definitions and how they should be interpreted. Nonetheless, medical issues are only one aspect of qualifying for TPD.

Every aspect of your training, education and job history needs to be examined and proof shown as to why it is not possible for you to do job that may be classed as suitable.

Although you might be medically cleared to work in an office job, you might lack the expertise, aptitude and knowledge required to land a role that suits you. Are jobs being advertised near to your home address? What additional obstacles stand in your way of becoming employed?

Getting hired is great, however keeping that job over the long term might be more difficult, due to the illness or injury. If you can get a job but not sustain it, you might still qualify for TPD benefits.

Absolute Insurance can help you

Absolute Insurance is a Perth owned family business who specialise in offering a range of insurance services from Perth to Mandurah. As an insurance broker, we make sure you are getting quality insurance that suits your needs and situation.

What Is Trauma Insurance?

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Insurance is available in all forms. Among the most popular insurance options are life and income insurance. These insurance options play a vital role in ensuring one’s well-being and ability to ‘bounce back’ or recover should there be an unfortunate event. One type of insurance that is hardly ever considered, however, is that of trauma insurance.

What is Trauma Insurance?

Trauma insurance is insurance that will provide you with a lump sum insurance payout in the eventuality that you are diagnosed with what is considered a traumatic medical condition. Such traumatic medical conditions include heart attack, stroke, or cancer to name a few. Below, we take a closer look at how having trauma insurance will work for you, your family, and your loved ones.

Why Do I Need Trauma Insurance?

If you are a perfectly healthy and fairly young adult, you may be wondering why you would need trauma insurance. You may be surprised to know that many young people make use of trauma insurance in Perth. Unexpected health conditions can affect you even while you are young.

What is Trauma Insurance
Here at Absolute Insurance, we identify the best, most comprehensive, and affordable trauma coverage for you.

Some of the common medical conditions covered by most trauma insurance policies include:

Heart attack
Multiple Sclerosis
Coronary artery bypass surgery
Sight, hearing, or speech loss
Parkinson’s Disease
HIV, Hepatitis B or C acquired occupationally
Severe rheumatoid arthritis

In addition to being traumatic, many of the illnesses listed above are life-threatening. For all these reasons, obtaining a trauma insurance quote will prove to be beneficial.

How Trauma Insurance Coverage Works

As beneficial as trauma insurance is, however, surveys show that approximately 93% of Australians would have no coverage in the event of a critical illness diagnosis. Trauma insurance was developed out of the realisation that certain trauma conditions have an up to 80% survival rate.

However, treatments after survival often continue throughout the life of the survivor – thereby increasing their daily living expenses. Trauma coverage was developed to address this rise in living costs and allow for some relief to those suffering from the trauma by covering the medical expenses and funding any other medical care.

Importantly, any given Trauma Insurance policy can cover up to 30 trauma conditions or as few as 10 or 15. As such, policies should be studied carefully. Here at Absolute Insurance, we identify the best, most comprehensive, and affordable trauma coverage for you.

What Is Life Insurance?

life Insurance

Life Insurance

Life insurance is the lump sum paid to your family in case of your death or a terminal illness. The benefit of life insurance is the financial security provided to your family after you pass away.

What are the different kinds of life insurance?

There are many kinds of life insurance which help you in difficult situations. If you want more protection it will cost you more. Each type of insurance provide a certain benefit payment to help you after events such as disability, death, critical illness, or serious injury.

Here is a quick look of each of these products which can be extremely useful as a financial safeguard.

Term Life Insurance

Term life insurance provides a lump sum payment to you or your beneficiaries when you die or are diagnosed with a terminal illness which will result in death within a specified period which is usually 12 or 24 months. If you have not nominated any beneficiaries, the proceeds will be distributed in accordance to your will.

Term life insurance can help your dependents pay out your debts and can also provide for the future needs of your children. The money can also be invested and used for gaining an income.

life Insurance

Total and Permanent Disability (TPD) Cover

TPD cover pays you a good sum if you become totally and permanently disabled.

TPD essentially means that you are disabled to the extent that you will may be unable to work again. It can be defined as unable to work in your own current job, or unable to work in any job again.

Trauma Insurance

Trauma insurance can pay you a lump sum of money to meet medical expenses and clear the debts when you suffer a medical trauma.

Medical traumas are defined as a list of specified illnesses and injuries and will vary between policies. Some of the more commonly defined events are cancer, stroke, and heart attack.

Income Protection Insurance

Income protection insurance pays you a monthly benefit if you are not able to work for a certain period of time due to illness or injury.

Policies will insure you for a set percentage of your current regular income and for a certain length of time.  You can make a claim and your income protection insurance will start after a certain waiting period mentioned in the policy. The policy will pay you the agreed amount till you to return to work or for the agreed period of time.

Some companies will insure 75% of your total package including your superannuation contributions. Others may cover 75% of your salary and pay 100% of the usual super contributions to your super fund.

How can I get a Policy?

If you are thinking about getting life insurance, speak to Absolute Insurance today.

We can help you compare policies to see the level of cover they offer, exclusions and value to find a policy that is suited to your situation.

Is Life Insurance Worth the Cost?

Life insurance is a grudge purchase for many people. We all know that insurance plans are an important part of financial planning, but it’s morbid to think about our mortality. That’s the reason many Perth residents put off taking out term life policies as long as possible.

Some other common reasons for putting things off include:

  • It’s too pricey.
  • No dependents.
  • Too young.

These arguments do make sense on the surface. On closer inspection, they carry no water.


  • If you think that life insurance is expensive now, wait ten years and be shocked.
  • Will you never have a family? What about a cause that you’d like to support?
  • The younger you are when you take out your insurance the better. Lock in the price sooner rather than later. This early action provides protection if you develop a chronic ailment or become overweight later on.

Reasons Why Life Insurance is Important

When you’re young and single, you feel invincible. You’ve got no dependents, and so you don’t see any point in buying life cover. Your reluctance is understandable, but it’s time to overcome it.

If the recent Covid-19 crisis taught us anything, it’s that life’s unpredictable. You could die in the prime of your life on any given day.

You need life insurance now for several reasons:

  • The longer you delay, the more expensive premiums become. You’ll pay more over ten years as a result than the person who took their policy out young and paid for thirty years.
  • Lenders usually expect you to have life insurance when making big purchases. They’ll even offer you a policy. These policies are costly for what you’re getting. If you have your own insurance, you can cede that instead.
  • You might not have dependents, but someone is going to have to pay for your funeral costs. Do you want your family burdened with that?
  • If you do have a family, have you considered what the effect of your death will have on them? Will they be able to afford to stay in their home? Is there enough money in the estate for them after the executor pays the debts?

Ask Greg a Question About Life Insurance

Still confused? Don’t feel alone – insurance can be a very complex issue. How much is enough? Should you choose a whole life or term life plan? Are there any gaps in the cover? 

For the answers to all these questions and more, speak to Greg. He’s standing by to help you secure your family’s financial future and give you peace of mind.