Types of Life Insurance
People often get confused, because there are a number of types of life insurance available in the market. A life insurance is both a product in itself and a class of product. The following lists the all the types of life insurance available in the market.
Term Life Insurance: Provides a lump sum payment in the event of death and is designed to protect your family. Additional information can be found about:
- Term Life Insurance 101
- How Much Life Insurance Do I Need?
- How Much Will Life Insurance Cost?
- Do I Need Life Insurance?
- Tax Benefits of Life Insurance
- Life Insurance & Superannuation
- Applying for Life Insurance
- Applying as a Couple
Total and Permanent Disablement Insurance (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. Further information can be found:
- TPD 101
- How Much TPD Insurance Do I Need?
- TPD Definitions
- Bundling TPD with Life Cover
- TPD Insurance Quote
Trauma Insurance: Typically people establish between $50,000 and $200,000 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. All you need to know about trauma insurance can be found here:
- Trauma Insurance 101
- How Much Trauma Insurance Do I Need?
- Common Reasons to Claim on Trauma Insurance
- What Does Trauma Insurance Cover?
- Trauma Insurance Quote
Income Protection: Ideally everyone should establish 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.