Life and TPD Insurance
Life Insurance can provide a lump sum payment3 in the event of your death, or diagnosed as terminally ill with less than 12 months to live. This money could be used to:
- Clear your debts;
- Enable your family to meet their ongoing living expenses and maintain their lifestyle;
- Cover other expenses such as childcare and housekeeping; and
- Treat your beneficiaries equitably.
Being unable to ever work again due to total and permanent disability would have a serious emotional and financial impact on you and your family. Having adequate cover in place for such an event can help secure your financial future and give you peace of mind.
TPD Cover will provide you with a lump sum benefit of up to $5,000,000 in the event of total and permanent disability as a result of sickness or injury. The benefit payment could be used to pay off your mortgage and other outstanding debts, cover the costs associated with a long term disability such as full time care or modifications to your home or cover the shortfall of income protection cover which generally only allows you to protect up to 75% of your income.
1 TNS Research, “Investigating the Issue of Underinsurance in Australia”, August 2005.
2 Institute of Actuaries of Australia, 2007.
3 If the insurance is held within a super fund, the benefit may also be paid in the form of an income stream.