Different Types of 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 that help you in difficult situations. If you want more protection it will cost you more. Each type of insurance provides a certain benefit payment to help you after events such as disability, death, critical illness, or serious injury.

Also read: How Much Life Insurance Do You Need? 

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, contact 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.

Related Posts:
– Can you buy Life Insurance for a family member?
Is It Legal To Have Multiple Life Insurance Policies In 2021?
– Learn all about Life Insurance in Australia

Greg Maguire

Greg Maguire

Greg is an experienced Insurance Broker in Perth, WA, with an Advanced Diploma of Financial Planning from Deakin University and a Bachelors Degree from Edith Cowan University. He is a member of the Chamber of Commerce & Industry WA and Baldivis Rotary, as well as Vice President of the local high school's Parents & Citizens Association. Greg provides personalised and dedicated services to his clients that bigger firms are unable to match.