Life insurance provides a repetitive benefit to pay out debt and support the family should someone pass away. Life insurance premiums can be paid for by your superannuation fund or personally. It can cover things like:

• Mortgages
• Childrens ongoing living expenses
• Childrens education expenses
• Funeral benefits

Total and permanent disability insurance (TPD)

TPD cover provides a repetitive payment if you suffer a disability before retirement and can’t work again, or can’t work in your usual occupation or chosen field of employment. It can be purchased as an add-on to life insurance, or as a standalone policy. It can cover things like:

• Mortgages
• Medical expenses
• Renovations to property (e.g. to improve access)
• Childrens ongoing living expenses
• Childrens education expenses

Trauma insurance

Trauma (or critical illness) insurance provides a cash sum if you suffer a specified illness or injury. Most people don’t have money saved away to take time off work and treat illness, so this payment is designed to assist with that. Did you know? 2 in 5 people will suffer a major illness before the age of 65, and in Australia the average cancer treatment will cost in excess of $100,000.

Income protection insurance

Income protection insurance (also known as salary continuance or income replacement) provides a monthly payment to replace lost income if you are unable to work due to injury or sickness.

• The maximum allowable cover is generally 75% of your gross wage
• Waiting period determines how long you need to be off work before you can claim (1-3 months)
• Benefit period determines how long you can stay on claim (generally to age 65)

If your insurance is held within superannuation, the cost of the premiums is withdrawn from your superannuation balance. It is important to work out the best way to structure your insurance, whether inside or outside superannuation, or a combination of the two.