Each family differs, but it’s fair to say there is usually one common similarity, the wish for financial protection. Protecting your loved ones if you were to pass away or to suffer a serious disability or illness can be an important consideration when planning for your family’s financial security. Unfortunately, many Australian families are underinsured, or not insured at all. For many of us, this may leave our loved ones in a difficult position if the worst were to happen.
So, what Life Insurance products are available?
There are a range of covers which can help provide peace of mind. You may consider one, or a combination of cover types to help protect you and your family.
Life cover (also known as term life insurance, or life insurance cover) provides financial protection for a defined level of cover, with a lump sum payment available in the event of the death of the life insured. Many life cover products will pay your claim upon diagnosis of a terminal illness, instead of upon death.
Total and Permanent Disability (TPD) cover
With TPD cover, you receive a lump sum payment if you are unable to ever work again because of sickness or injury occurring after the cover starts. The proceeds of a claim may help you do things like modifying your home, replacing lost income, or reducing or clearing debts (such as a mortgage).
Trauma cover is sometimes available as an option with Life cover, or it can be taken on a standalone basis. The cover responds by making a lump sum payment if the insured person suffers a serious medical condition listed in the terms of the cover – such as Cancer, Stroke, Heart Attack, or Coronary Artery Disease.
It’s important that you check the terms of the cover (these are in the Product Disclosure Statement) for the actual names of the conditions covered and the descriptions of the conditions – these tend to differ from insurer to insurer (see note below). You can use the funds to help you pay any excess treatment expenses in addition to any health insurance cover you may have in place or to adjust your lifestyle to provide a financial buffer while you focus on your health and aim to get back on your feet.
- With NobleOak’s trauma insurance cover, these four conditions are listed in the PDS as Cancers – excluding specified early-stage cancers, Stroke – in the brain resulting in specified permanent impairment, Heart Attack – with evidence of severe heart muscle damage, and Three Vessel Coronary Artery Disease – requiring specific treatment.
Income Protection Insurance
Income Protection cover (also known as disability income cover) pays a monthly benefit during your selected benefit period while you cannot work due to sickness or injury, helping you support yourself, your family and cover essential living expenses. The monthly benefit is calculated as a portion of the income you were earning before you became unable to work.
With Income Protection cover, you may also be entitled to:
- A Partial Disablement Benefit, which is a reduced benefit if you return to work in a reduced capacity.
- A Rehabilitation Expenses Benefit for additional expenses (recommended by your doctor) to help you to return to gainful employment, such as special equipment and workplace modification.
Always check the terms of cover to see what benefits may be payable.
When should I consider Life Insurance?
Your needs and those of your family may depend on the life stage you are in. You may be starting out as a young adult, have a family to support or be downsizing or approaching retirement. Consider the following when thinking about obtaining cover to help prepare for an unexpected serious illness or injury or if you were to pass away:
- Families with young children: having the financial means to maintain the lifestyle the children are accustomed to.
- Families with older children and young adults: helping fund school fees, university education, and other living costs.
- Those with a mortgage and other debt; ensuring the mortgage repayments can be made and other financial commitments are looked after.
- Seniors: from your 50s right through and beyond your retirement age, you can continue to help protect the lifestyle you’ve worked hard for.
How do I start?
To find out more or get a quote, you may wish to consider NobleOak, an Australian-based Life Insurer with a 145-year heritage. NobleOak has a rich history built on a desire to help Australians and their families in their time of need, guided by the values of integrity and benevolence. You can have a chat about NobleOak’s product features with one of NobleOak’s friendly representatives on 1300 014 494.
If you decide to get cover, mention ‘Eternity News’ and you will get your first month free – details on site. You can also click here for an online quote.
This article is a sponsored content piece from NobleOak Life Limited. Please note, cover available to Australian residents only. The Target Market Determination for NobleOak’s Premium Life Direct insurance is available here.
NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 issues the products. This information is of a general nature only and does not take into consideration your objectives, financial situation or needs. Always consider the Product Disclosure Statement (PDS) to see if the product is right for you.