What's the difference between life assurance & life insurance?
You’re looking for protection for your family but you’re unsure of what you need. You may be unsure of the differences between life insurance and life assurance, so what’s the difference?
In Australia, Life Assurance is the same as Life Insurance and provides a lump sum payment the person insured passes away.
There are four main types of life insurance available:
- Life Insurance
- Total & Permanent Disablement (TPD) Insurance
- Trauma Insurance
- Income Protection Insurance
Life Insurance: sometimes known as death cover, life insurance pays out an agreed lump sum. This is generally in the event of your death, or when diagnosed with a terminal illness with only 12 months to live
TPD Insurance: will pay out an agreed lump sum in the event you become totally and permanently disabled and unlikely to work again
Trauma Insurance: also known as critical illness insurance will pay out an agreed lump sum in the event you suffer from a medical condition covered by your policy. The number and types of conditions covered vary between products, so it’s great to review the Product Disclosure Statement to see which ones right for you.
Income Protection Insurance: pays up to 75% of your monthly salary if you are unable to work for an extended time due to illness or injury.
In order for you to have assurance about you insurance cover it is best to speak to a qualified insurance adviser who can help make a confident decision for your life insurance needs.