Life Insurance:

Life insurance is an extremely important part of your financial planning process and offers protection for you, your family and your business.

What is it?
In a similar vein to Income Protection, Life and Trauma Insurance gives you additional protection. In the unfortunate event that one of the bread winning partners or individuals dies or suffers a major medical crisis, e.g: heart attack, stroke, cancer, or some other ailment, your insurance cushions the loss.

Life and Trauma insurance provides a lump sum payment which will enable you to pay the outstanding component of the mortgage and to meet the unforeseen costs of medical treatment, rehabilitation, funeral cost etc. This will allow you to recover without the pressure of needing to return to work prematurely so as to meet cash flow requirements.

Term Life Insurance is an affordable means of peace of mind for you and your family in the event of an unexpected death of a loved one. Term Life Insurance can also be used for protecting yourself or a business partner in the event of death.

How is it paid?
It will pay a lump sum of money upon death, or upon diagnosis of a terminal illness with 12 months or less to live, or Total & Permanent Disability (if selected).

Term Life Insurance will pay the full lump sum benefit on the event of death from any cause (ie, sickness or accident), with the only exclusion by some insurers being death by suicide or war within 13 months of commencing or re-instating a Term Life Insurance policy.

The Terminal Illness benefit will pay a lump sum benefit when the life insured has been diagnosed as having 12 months or less to live. This benefit will depend on the particular insurance company’s policy conditions.

A Total & Permanent Disability (T.P.D.) full lump sum benefit is payable if the life insured meets specific criteria established by each individual insurer.

If you are self-employed, or are a director of your own company, and with no other employer paying superannuation on your behalf, Term Life Insurance (and T.P.D, if selected) can be structured as superannuation with an ‘insured benefit only’ payable. You would then qualify for a 100% tax deduction on the premium paid.

Who can be a beneficiary?
With a Term Life Insurance policy you also have the facility to Nominate Beneficiaries. This means that you can decide who receives the benefit, and what proportion of the benefit they receive. It also avoids any delays that may be incurred in the settlement of probate, and funds are available immediately, at a time when they are needed most.

All information included on this site is Life Insurance Advisory Service of Australia’s interpretation only, and for exact definitions, the individual insurance companies customer information brochure should be referred to at all times.

How can we help you?
We can provide you with information about the life insurance options available to you.  Contact us today for a free no obligation appointment.

Prepared by John Hehir Financial Advisers Australia (FAA)