Insurance Advice

Finding the right insurance policy in the Australian market can be confusing. To simplify matters, here is a brief guide to the different types of insurance cover available in Australia:

  • Life Insurance

    Life insurance is one of the most popular forms of protection insurance in Australia. It provides a lump sum payment to your family in the event of your death or to you if you are diagnosed with a terminal illness. Australian life insurance is known as term life insurance. This means that it has a limited term, usually ending once the policy holder turns 99.

    Group life insurance is a way that employers can provide extra benefits to their employees by offering a group life insurance plan, often at a substantially lower price than a private life insurance policy.

    If you choose a private life insurance policy there are usually three different ways to arrange your premiums. Policyholders can choose premiums which increase with age (stepped life insurance), premiums which stay the same but with a decreasing death benefit (decreasing life insurance) or level life insurance where you take on most of the cost in the earlier years of your policy.

    When selecting a life insurance policy it is important to get the best possible advice from an experienced insurance professional such as those at Western Advisory. We can help you find the life insurance policy most suited to your needs at the best possible price.

  • Trauma or Critical Illness Insurance

    Trauma insurance is also known as Critical Illness insurance, Recovery Money insurance and Trauma Cover. It is a type of personal insurance designed to give people who are diagnosed with a serious illness a lump sum to help with treatment and recovery costs.

    Most trauma products have a waiting period of around 90 days for certain health problems but some illnesses and the majority of accidents are claimable from the beginning of the policy.

    Rates for trauma insurance can vary depending on risk factors such as age, gender, previous medical history and lifestyle, as well as any hazardous occupations or hobbies that you may partake in.

    Trauma insurance is often purchased in conjunction with life insurance and doing this can be a sensible way to reduce your costs. It is best to speak with your broker before purchasing a trauma policy as they will have the most up to date advice on the policies and packages available.

  • Income Protection Insurance

    Income protection insurance is an extremely valuable form of insurance that can replace up to 75% of your income should you suffer from an illness or accident that prevents you from working for an extended period of time.

    There are a number of extra benefits available when you purchase income protection insurance, including rehabilitation benefits, transportation benefits and bed confinement cover. Benefits, waiting periods and length of benefit times can vary significantly between policies and insurers making it possible to tailor your policy very specifically to your individual needs.

    The cost of income protection insurance varies according to the number of benefits you choose and the length of your benefit payments. Your premiums will be more expensive if you smoke, have a history of medical problems or have a high risk occupation.

    Income protection insurance is a very complex field so it is important to seek professional advice before purchasing a policy. There are a number of ways to structure your income protection policy and each has implications for your premiums and often your tax arrangements.

  • Disability Insurance (TPD)

    Disability insurance is also known as Total and Permanent Disability (TPD) insurance. If you become disabled it can create a huge financial strain on your household. Disability insurance is designed to help ease this burden by providing you with a lump sum payment in the event you become permanently disabled.

    Disability insurance can be purchased as a stand alone policy or as part of a life insurance policy. If purchased under a life insurance policy it may be possible to fund your disability insurance through your superannuation fund and save money on the premiums.

    The exact definition of what constitutes a disability varies between insurance providers so it is important to seek professional advice before committing to a policy as sometime cheaper policies may not give comprehensive coverage to the situations most likely to affect you.

  • Other

    Other forms of risk management include:

    • Keyman Life Insurance
    • Business Expenses Insurance
    • Mortgage Protection Insurance
    • Accident & Sickness Insurance