Risk Insurances (Personal Life, Sickness, Trauma)

What is life insurance?
Term life insurance pays a lump sum on the death of the insured, or if the life insured is diagnosed with a terminal illness and has usually less than 12 months to live.

Life insurance, how much do you think you need?
Some interesting statistics to consider;

  • 4 out of every 100 Australians, according to a Rice Walker Actuaries survey, have adequate life insurance
  • After the sole income earner of the family dies, in just one year, 60% of Australian families would experience financial distress.

Income Protection Insurance
For those who are unable to work, Income Protection Insurance will act as your steady income for a period of time, allowing you to receive payments from up to 75% of your income before tax. With the ability to determine the waiting and benefit period, the premiums for Income Protection Insurance are usually tax deductible with the cost of the insurance indicative of your income and profession.

Income protection, how much do you think you need?
Some interesting statistics to consider;

  • One in three working Australians will be exposed to the misfortune of becoming disabled for a period of more than three months prior to the age of 65
  • Most serious accidents, in fact more than half of serious accidents occur outside of work where workers’ compensation is not applicable
  • It is recommended that you and your partner should insure the maximum of 75% of your pre-tax income up to the age of 65
  • The waiting period can be extended until after your sick leave and long service leave and any other entitlements will be exhausted.

Basic income protection can be taken out through your employer however, this only pays a benefit for a period of just two years which means that after two years you could be faced without an income.

Personal Risk Insurance
In the instance that you suffer an injury, illness or death, a financial benefit can be provided in the form of  Personal Risk Insurance. The options include life insurance, total and permanent disablement insurance, income protection insurance and trauma insurance.

Trauma Insurance
Helps to protect your savings in the event of a major health problem.
Trauma Insurance covers a number of specified non-pre-existing illness or injury, including heart attack, stroke, cancer and paraplegia. You are able to choose from trauma insurances as a stand alone policy or attached to a life insurance policy.

Trauma Insurance, how much do you think you need?
The chances of suffering a trauma are, unfortunately quite high.
For example:

  • For a 45 year old, the risk of having a stroke before 85 is 1 in 4 for men and 1 in 5 for women
  • It is expected that 1 in 3 men and 1 in 4 women will be diagnosed with a cancer before age 75
  • For a 40 year old, the risk of coronary heart disease at some time in the future is 1 in 2 for men and 1 in 3 for women.

To see how an Oculus advisor can assist you choose the right type of insurance Protection required, contact us on 07 5536 3755.