Life insurance is something that nobody wants to pay for, but everybody wants the benefits of. When considering the cost vs benefit of life insurance, consider your loved ones that will be bearing the brunt of your unfortunate demise….
There are 4 types of personal insurances
- Life Insurance
- Total and Permanent Disability
- Trauma Insurance/Critical Illness
- Income Protection
Life/Death insurance is a lump sum paid in the even of your death. When calculating your amount insured, consider the following needs.
- Mortgages
- Personal Debt
- Investment Debt
- Dependents
- School/Higher Education Fees
- Loss of income
- Final medical costs
Life insurance premiums are not tax deductible, and therefore payouts are tax free.
TPD is paid as a lump sum payment, and you cannot be covered/insured for more than the life insurance cover you have purchased.
TPD insurance premiums are not tax deductible, and therefore payouts are tax free.
This insurance is paid as a lump sum in the event of you being diagnosed with a defined critical illness.
Trauma insurance premiums are not tax deductible, and therefore payouts are tax free.
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What happens if you’re unable to work for 6 months or more due to illness or accident? Most policies will cover you for 75% of you income for either a set time period, or to age 65. Although income protection won’t provide you with a lump sum benefit, it will assist you in meeting regular costs and expense during your recovery and rehabilitation period. |
