This page provides a brief outline of common types of Life Insurance that can cover many of your life risk insurance needs, both personally and for your business. Click on one of the Life Insurance types listed below to see the outline of the risk cover provided.

• Life Cover
  
• Income Protection
  
• Trauma Cover
  
• Key Person Insurance
  
• Group Risk Protection
• Group Life Cover
  
• Group Income Protection
• Group Trauma Cover

Life Cover

There are two kinds of Life Insurance Cover, Term Life Insurance and Whole of Life Insurance.

Term Life cover is usually provided under a regular premium insurance policy which provides a lump sum benefit upon your death. For an additional premium you may be able to obtain Terminal Illness Cover which provides a lump sum benefit if you are diagnosed as being Terminally Ill. Typically the regular premium for Term Life cover will increase as you get older, as the risk of you dying or contracting a terminal illness increases. However, some policies provide a "level" premium which remains fixed until you reach a specified age, say 65, after which the premiums rise increase annually.

Term Life policies are not savings plans. The terms and conditions applied to Term Life policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs.

Whole of Life cover is provided under a regular premium insurance policy, which upon your death provides a benefit comprising a sum assured plus "bonuses" earned during the life of the policy. Typically the premiums for Whole of Life cover do not increase as you get older. A Whole of Life policy may be "surrendered", in which case you may receive the cash value for the policy, or may be "paid up", in which case you pay no further premiums and the death cover ceases, but the policy continues to earn income until it is surrendered. Other features may also be available under the policy, such as waiver of premium in the event of permanent disablement or incapacity, or the ability to borrow against the cash or surrender value of the policy.

The terms and conditions applied to Term Life policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs.

Income Protection

Income Protection insurance provides a regular, usually monthly, benefit if you are off work due to sickness or injury. This benefit is typically up to a percentage, say 75%, of your pre-disability income (net of business expenses but before tax) at the time of making a claim. If the insurance policy is terminated at any time the policy does not have a cash value and you will not get anything back.

Additional benefits that can be available under an Income Protection policy include:

•    Total Disability Benefit
•    Attempted Return to Work
•    Partial Disability Benefit
•    Rehabilitation Expense Benefit
•    Indexation of Cover
•    Waiver of Premium
•    Recurring Disablement
•    Leave Without Pay Benefit
•    Unemployment Benefit
•    Right to Automatically Upgrade
•    24 Hour Cover
•    Claims Escalation
•    Accident Lump Sum
•    Premium Pause

Exclusions or limitations may apply to the benefits you receive under an Income Protection policy. For example the policy may not cover pre-existing illnesses or injuries and may exclude injuries caused by pregnancy of childbirth, or by you personally or in other specified situations.

Income Protection policies are not savings plans. The terms and conditions applied to Income Protection Policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs.

Trauma Cover

Trauma Cover pays your chosen sum insured on:

•    death,
•    diagnosis of terminal illness,
     total and permanent disablement, or
•    the occurrence of one of a specified set of medical conditions or procedures.

Typically a Trauma Cover policy will cover you 24 hours a day worldwide. You can take out a policy on your own life, or insure the life of another person such as a family member or business partner.

Different insurance companies cover different events, medical conditions and procedures.
Examples of these events are:

Note that some events, conditions and procedures may be excluded for a specified period after the commencement of cover. Trauma Cover policies are not savings plans. The terms and conditions applied to Income Protection policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to your needs.

Key Person Insurance

Key Person Insurance policies can provide capital or revenue to help cover the costs of replacing a specific person in a specific role in the event of that person's death, disability or illness.

The terms and conditions applied to Key Person policies will vary between insurance companies so you should ensure that any policy offered to you is appropriate to the needs of your business.

Group Risk Protection

Employers have the ability to provide benefits to attract and retain valuable staff through the use of Group Life, Group Salary Continuance, Group Crisis Care and Group Income Protection Insurance. Employers can add value by incorporating insurance cover as part of a comprehensive employee package. These forms of insurance can effectively cover all areas relating to death, disability and long term sick leave shortfalls.

Group Life Cover

This form of insurance generally covers Death and/or Total and Permanent Disability (TPD). There is a limitation on the minimum number of lives per policy that varies between insurers. Takeover terms apply in most cases where a policy can be moved between insurers on terms no less favourable than the previous insurer offered. Some insurers offer additional benefits such as additional cover, spouse cover and more favourable definitions relating to TPD.

Group Income Protection

This form of insurance offers a monthly income disability benefits of up to 75% of salary. There are a number of options relating to waiting periods. They can range from 30, 60, 90, 180, 360 and 720 days. Benefit payment periods range from 2 years, 5 years or even up to age 65. These vary between insurance providers. Takeover terms are also offered in relation to existing policies with other insurers. Many additional benefits are provided and vary between insurers.

Group Trauma Cover

This form of insurance pays a lump sum upon admittance of a claim for certain prescribed medical conditions. Some of the conditions that are covered are as follows heart attack, paralysis, severe burns, blindness to name but a few. These conditions vary between insurance providers under their policies. Again certain additional benefits such as optional death cover can be attached to certain policies.

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