Austcover recognises that in times of great need, a properly constructed personal insurance plan can provide important financial assistance and peace of mind. Austcover has an experienced team of Life and Superannuation advisers that are able to Advise, Assist and Assure with all classes of Life Insurance and related products. These include Total & Permanent Disability Insurance, Trauma Insurance and Income Protection.
Income Protection: Frequently Asked Questions
What is Income Protection?
Income Protection is an insurance policy that provides you with an income if you are unable to work because of an accident or sickness. The benefits are paid monthly for the period of incapacity or the duration of the policy, whichever comes up first.
Who needs Income Protection?
If you don’t know how you would pay your family’s or your own living expenses without your income, you should consider purchasing an Income Protection policy.
How much Income Protection do you need?
Most policies permit you to cover up to 75 per cent of your present income and whilst you can nominate a lesser amount, most people take out maximum cover.
When does Income Protection start and finish?
Income Protection would commence after your employer is no longer obliged to continue paying you whilst you are unable to work due to sickness or accident. It is essential if you are self- employed. The benefits may continue until retirement or when your income would normally have ceased – probably when you reach 65 years of age or may be limited by the terms of the policy. Payment would cease when you are determined to be fit and return to work.
Trauma Protection: Frequently Asked Questions
What is Trauma Protection?
Trauma or Critical Illness Protection is a policy that pays you a lump sum if you are diagnosed as suffering from one of many defined medical conditions. The illnesses covered vary from policy to policy, but most cover cancer, stroke, heart attack and coronary disease. Some policies also cover death and/or permanent disability.
Who needs Trauma Protection?
Intended to cover the extra costs incurred should you become seriously ill, Trauma Protection can also provide a lump sum payment sufficient to pay out mortgages and other debts, to reduce the worry of meeting regular payments during your recuperation or ongoing illness. Employees need this policy because most trauma events cannot be paid from a Superannuation Fund. It’s also ideal for people who are ineligible for Income Protection Insurance, such as home keepers, people in high-risk jobs, or when the cover available through Income Protection is insufficient.
How much Trauma Protection should you have?
As a minimum, the amount of cover should be sufficient to pay all your unexpected costs during one of the defined illnesses. Ideally it should also take into account the effects the illness has on the financial position of your continued earnings and changes in lifestyle you and your family would have to endure.
Term Life Insurance: Frequently Asked Questions
What is Term Life Insurance?
This is a policy that provides a lump sum payment on your death. Many policies provide an amount paid upon diagnosis of terminal illness or permanent disability.
What is Total & Permanent Disablement?
This is a policy benefit that provides a lump sum in the event that you become totally and permanently disabled.
Who needs Term Life Insurance?
Anyone who has insufficient funds to cover the needs of dependents or debt payments should have a life insurance policy. A Term Life policy provides one of the most cost effective measures for your personal risk protection.
How much Term Life Insurance should you have?
As a minimum you should carry enough life insurance to clear all your debts plus any expenses, and enough to avoid placing your dependants into financial difficulty.
This amount would enable your family to maintain their current lifestyle using the income generated by investing the lump sum left after paying out your debts.
