You never want to see your loved ones or family struggle. You’d like to keep an eye on them at all times, but unfortunately you just can’t. Thankfully, you can take out a life insurance policy to provide a financially secure future for them and minimise their stress at a difficult time.
What is ‘life insurance’?
‘Life insurance’ is both a type of cover (death cover) and an umbrella term for insurance that will support you or your family if you become seriously injured, ill or pass away.
While there are a few kinds of life insurance, two policies – called ‘death cover’ and ‘total and permanent disability’ insurance – can help support your family if you were unable to due to death or disability.
What is ‘death cover’ and ‘total and permanent disability (TPD)’
The cover or benefit amount you want to be insured for should help cover:
- The cost of any debts you have, like your mortgage
- Care and education costs of your children (if you have them)
- Your income to help your family with day–to-day costs after losing you
Death cover can also help pay for funeral expenses as many life cover products include an Advanced Funeral Benefit for this purpose, rather than having an additional policy in place.
Total and permanent disability (TPD) insurance covers you – and those who financially rely on you such as family – if you become ill or injured and unable to work again. TPD insurance should cover:
- Day-to-day expenses for you and your family
- Any outstanding debts you may have, like your mortgage
- The costs of rehabilitation, home modifications and medical costs.
There are different definitions for a permanent disability, so it’s important to understand your options when purchasing cover.
Why should I think about insurance?
Life insurance can help support you and your family if the worst was to occur. Life insurance policies offer a range of features as well as the benefit, which are paid out to your loved ones if you become terminally ill or pass away. These benefits can include support such as grief counselling and financial planning support to help your family manage the claim they receive. The benefits included in each policy vary, to learn more, compare your cover options or take a look at the relevant product disclosure statement.
Where can I find policy options for my family?
Having a life insurance policy with total and permanent disability insurance and/or death cover will give you peace of mind when it comes to your family’s future.
When looking for an insurance policy, consider the insurance options open to you and the amount of cover you’ll need. For example, you may need to cover childcare, education or income for your family, loved ones or partner.
You can use Lifebroker to compare life insurance products and prices, and work out what options are suited to your needs. So you can have the peace of mind that comes with providing your family with a secure future.