Life & Total & Permanent Disability
We’ve got you covered.
As a general rule of thumb if you allow for clearing all debts and a further amount of 10 times your annual salary this should provide a level of security for your dependants. (this amount will vary depending on your individual circumstances)
If you are self employed or a director of your own company, the life policy could be structured in a way that allows you a tax deduction on premiums (call or email for details)
Life insurance can also be used to provide funding for business partners or directors to purchase the shares of co directors or partners on their death. You can also use life insurance to insure key people in you business who’s death would have a detrimental financial effect on the company.
If you own a DIY superannuation fund you may also benefit from having your life insurance owned by your DIY super fund. Do not fall into the trap of transferring your existing life policy into your DIY fund as this “in specie” transfer will render your fund non-compliant.
Total & Permanent Disability
TPD insurance pays a lump sum benefit on the event of a person becoming totally and permanently disabled. It is designed to provide a lump sum to pay off loans and provide funding for medical expenses and any home modifications that you might require as a result of total & permanent disability.
This type of insurance is normally taken in combination with life insurance and has either an “own occupation” disability definition or “any occupation”. If this cover is taken as part of a superannuation policy it can only have “any occupation” definition and this means you will only receive a benefit if your are unable to work in your usual occupation, or at any other occupation which you are reasonably suited to by way of education, experience or training and these circumstances have existed for at least 3 months continuously.
Features, benefits and price of insurance have gone through considerable change in recent years .There Are also tax and legislative changes that make a regular insurance review even more important Contact us to see how you could benefit from an obligation free review.