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Types of Life Insurance

We do not provide you with personal advice as to the type and amount of cover that should be established; however as a guide you can consider the following:

Life Insurance: enough cover to clear all debts, pay funeral expenses. If they have children or a dependent spouse an additional lump sum to provide income for the family going forward.

TPD Cover: often people take the same level of TPD cover as life cover. However this may not always be required, especially where income protection is established.

Trauma Cover: typically people establish between $50,000 and $100,000 cover depending on their situation. This ensures that if a trauma is suffered the lump payment will meet all costs associated with the trauma and provide temporary financial relief.

Income Protection: ideally everyone establishes income protection, as it is your key asset. The variables are the waiting period and benefit period. The waiting period should be extended to as long as possible to match with your financial position, such as sick, and long service leave. Income protection should not be viewed as protection for short term illness. It should be viewed as providing cover for an extended inability to work. What would happen to your financial situation if you were unable to work for 12 months due to illness?

IMPORTANT : This information on this page is generic in nature and cannot be relied upon to determine what insurance cover you should establish. Lifebroker and National Financial Solutions bares no responsibility for whether your cover amount or type is suitable to your personal circumstances if you become a client.