Why do I need life insurance and income protection?
One of the most common questions we are asked here at Lifebroker is why do I need life insurance or income protection? There are many types of insurance, which are designed to protect you in different ways, but they have one thing in common — they exist to provide peace of mind and financial security for you and your family.
We have put together this no-nonsense guide to help you understand the benefits of each type of insurance. And of course, if you still have questions just give our specialists a call on 13 54 33.
Income protection insurance
Income protection provides you with up to 75 percent of your income if you become unable to work due to illness or injury.
Having income protection in place can offer a real lifeline if you’re sick or injured and unable to work, especially if you have monthly outgoings such as loan or mortgage repayments, bills or tuition fees.
It provides you with peace of mind, knowing that your lives can continue on after an injury or illness without the additional stress of worrying about financial consequences.
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In general terms, life insurance provides your beneficiary (the person who you have assigned to receive the benefit) with a lump sum payment in the event of your death. A lump sum payment is also is paid when you are diagnosed with a terminal illness with only 12 months to live.
When it comes to deciding if you need life insurance it’s good to think about all the things you currently pay for and who you support. If something were to happen to you how would your family cope with expenses such as mortgage repayments, car repayments or school fees in the future?
At a difficult time, life insurance can help your family cope financially. From funeral costs to unpaid debts, there will be costs that your family may not be prepared for. Life insurance can help provide financial relief and support, with some policies featuring benefits such as grief counselling and financial planning assistance.
Total & Permanent Disability insurance
Total & Permanent Disability (TPD) insurance provides financial assistance should you be permanently disabled and unlikely to ever return to work.
Becoming totally and permanently disabled through illness or injury has an enormous impact on anyone’s life, as well as those who are close to them. Along with everyday expenses, there may be a number of changes and lifestyle adjustments, which require significant financial investment such as home modifications or rehab treatments.
Having TPD insurance in place means that at such a difficult time you and your family have the help you need to cope financially.
Suffering a major trauma event such as heart attack, cancer or a stroke can have a financial impact that you and your family would have to deal with.
Trauma insurance can provide financial support for medical costs, rehabilitation treatment, and help cover bills and other expenses so you can focus on your recovery.
If you’d like to find out more about the benefits of life, trauma, TPD or income protection insurance, give our specialist consultants a call for a confidential chat on 13 54 33. We’re here to help.