A simple guide to Life Insurance

Transcription

1 A simple guide to Life Insurance Your guide to Life, Income Protection, Trauma, and Total & Permanent Disability Insurance. Lifebroker Pty Ltd ABN

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3 Introduction Why do I need personal insurance?... 3 About Lifebroker... 3 What s in this guide?... 3 What is Life Insurance? Life Insurance... 4 Trauma Insurance... 5 Total & Permanent Disability (TPD) Insurance... 6 Income Protection... 7 Your journey with Lifebroker... 8 Benefits of an Underwritten Policy... 9 Taking the next step LIFE lifebroker.com.au

4 Introduction Why do I need personal insurance? If you currently have financial dependents, or plan to in the future, personal insurance will allow you to ensure their quality of life and financial security. Personal insurance ensures that in the event you become seriously ill, permanently disabled or pass away unexpectedly, you will still be able to provide crucial financial support to the ones who matter most. Personal insurance will help you: Cover outstanding debts such as mortgage repayments and school fees What s in this guide? This guide will provide you with a summary of everything you need to know about the four main Life Insurance products - Life, Income Protection, Trauma and Total & Permanent Disability (TPD) Insurance. It will also help answer questions, such as: What is Life Insurance? How can Life Insurance policies differ between providers? What are the benefits of comprehensive Life Insurance? How do I take the next step? Cover the costs of rehabilitation after serious injury or illness Provide ongoing assistance for everyday costs of living Secure your family s quality of life should the unexpected happen About Lifebroker Lifebroker is one of Australia s leading specialist brokers of Life Insurance. We provide a free, online comparison service, which runs in partnership with 11 of Australia s major insurance providers. Lifebroker was founded in 2002 with the vision to provide every Australian with the tools and information needed to access comprehensive personal insurance. Contact Lifebroker today to find out more about our services. Call us on 13 LIFE or visit our website Lifebroker holds an Australian Financial Services Licence issued by the Australian Securities and Investment Commission. Page 3 13 LIFE lifebroker.com.au

5 Life Insurance Term Life Insurance, otherwise referred to as Life Insurance, death cover, or life cover, provides a lump sum payment to a pre-determined beneficiary in the event of the death of a policy holder. If you have financial dependents, a comprehensive Life Insurance policy can help you ensure that their quality of life is preserved, even after you re gone. Why Life Insurance? Ensures your family remains financially secure in the event of your death You choose your beneficiary(s) A choice of life products from 11 of Australia s major insurance providers Many insurers provide the option to include Trauma and Total & Permanent Disability (TPD) insurance in your policy Your Life Insurance lump sum benefit can help your loved ones cover ongoing financial commitments such as mortgage repayments, tuition fees and the everyday cost of living. If you want to find out more about how Life Insurance can help you secure your family s financial future, contact Lifebroker today on 13 LIFE ( ) to speak to one of our trusted Life Insurance consultants. Life Insurance in a Snap Shot It pays an agreed lump sum in the event of your death or diagnosis of a terminal illness Used to cover debts and protect loved ones in the event of premature death Many policies also have a funeral advancement benefit Also known as Death Cover, Term Life Insurance, Life Cover Life Insurance is a simple policy generally the same across different insurers Fast Fact More people insure their car and house rather than their life and income. (Source: Lifebroker Pty Ltd Survey, 2012) Glossary Beneficiary - This is the individual(s) chosen to receive the lump sum benefit should you unexpectedly pass away. 13 LIFE lifebroker.com.au Page 4 Page 3

6 Trauma Insurance Trauma Insurance, sometimes referred to as critical illness insurance, crisis recovery or medical catastrophe insurance, allows you to still be able to financially provide for your loved ones should you suffer a medical trauma. The specific trauma events protected by Trauma Insurance can differ greatly between policies. More than 50 different trauma events may be covered, including diabetes, Alzheimer s disease, loss of limbs, stroke, heart attack, cancer and brain tumours. Why Trauma Insurance? Covers rehabilitation costs Helps pay outstanding debts Stay ahead of mortgage and rental payments whilst you are recovering Pay for items (wheelchairs, mobility scooters etc.) and necessary home modifications to aid your recovery Trauma Insurance is not intended to be used as a replacement for Income Protection or private health insurance, rather, Trauma Insurance benefits can help pay off debts and the costs of rehabilitation after suffering a major trauma. It s difficult to put a price on peace of mind, but Trauma Insurance will help you ensure the financial security of you and your family when it s needed most. Contact one of Lifebroker s trusted insurance consultants today on 13 LIFE ( ) to find out more about how Trauma Insurance can help you. Trauma Insurance in a Snap Shot It pays an agreed lump sum in the event you suffer a set medical condition Used to help with medical expenses and loss of income in the event of trauma More than 50 different trauma events may be covered, which can include cancer, heart attack and stroke Also known as Critical Illness Insurance Number and type of conditions covered can vary significantly Fast Fact One in five men and one in seven women will suffer a critical illness before age 64. (Source: Rice Warner Report on Underinsurance in Australia, 2011) Page 5 13 LIFE lifebroker.com.au

7 Total & Permanent Disability (TPD) Insurance Total and Permanent Disability Insurance, sometimes referred to as TPD insurance, provides a lump sum benefit payment in the event that you become totally and permanently disabled. TPD insurance will ensure that, should your acquired disability stop you from being able to work, you will still be able to meet pressing financial commitments, such as: Covering rehabilitation costs Helping to pay outstanding debts Keeping up with everyday costs of living Staying ahead of mortgage and rental payments while you are unable to earn an income TPD Insurance in a Snap Shot It pays an agreed lump sum in the event you are totally and permanently disabled Used to cover debts and provide income to cover lifestyle in the event of disablement Also known as Total & Permanent Disablement Insurance TPD policies are generally similar across most insurers It is important to note that TPD benefit payments are normally only made after the insurer has deemed that it is likely you will be a unable to return to work again based on the specific details of your policy. If you have financial dependents that rely on you to provide an income, TPD insurance will ensure that in the event you become totally and permanently disabled, it will still be possible for you to provide an income while you are adjusting to your new life. Contact Lifebroker today on 13 LIFE ( ) to speak to one of our trusted Life Insurance consultants about your Total & Permanent Disability cover options. Glossary Fast fact One in five Australian families will experience the unexpected death, accident or illness of a parent. (Source: Lifewise/ NATSEM Underinsurance Report, 2010) TPD Insurance uses the following terms to define your occupation: Any occupation - You can claim if you re unlikely to return to work in your own occupation or any other occupation for which you are reasonably suited to by training, qualification or experience. Own occupation - You can claim if you re unlikely to return to your own occupation again; your usual field of employement. 13 LIFE lifebroker.com.au Page 6 Page 3

8 Income Protection Income Protection, sometimes referred to simply as IP Insurance, provides a monthly benefit payment of up to 75% of your income in the event that you are unable to work due to illness or injury. Income Protection policies will provide much needed cash flow over a pre-determined benefit period (for example, up to 65 years of age) should you be unable to work, allowing you to meet every pressing financial commitment until you are fully recovered. Why Income Protection? Continue to meet mortgage, rental and loan repayments Allows you to focus solely on your recovery, getting you back to work faster Paid in monthly benefits directly to your nominated bank account Ensures you can still provide financially for your loved ones IP policies can be tailored to suit your budget and your required levels of insurance protection by altering the waiting period, benefit period and by taking an agreed or indemnity value policy. In addition to this, the definitions of disability, partialdisability, recurring disability, income and additional benefits may all differ between providers. To find out more information on the specific details associated with IP policies, contact one of Lifebroker s trusted Life Insurance consultants today on 13 LIFE ( ). Income Protection in a Snap Shot It pays up to 75% of your salary if, due to sickness or injury, you are unable to work Used to protect your most valuable asset - your income There is no set list of conditions in order to claim, broad coverage Also known as Income Insurance or Disability Income Insurance Policies can vary greatly from one insurer to another Premiums are tax deductible Can be tailored to your budget by altering the benefit period, waiting period and by taking an agreed or indemnity value policy Increasing Claims option is Do an products option on differ all policies across and different should insurers? be taken as standard Glossary Benefit period - The period of time that you would receive a benefit should you make a claim. Waiting period - The period of time that you are unable to work before the policy begins to pay your income. Indemnity value - With an indemnity value policy, you are insured for what you say you earn, but if you make a claim you have to verify your income. If your income has reduced since you applied for cover, your claim will be paid on the reduced amount. Agreed value - With an agreed value policy, you prove your income at the time of applying and are insured to receive a set amount. You will know what you receive regardless of your income. Fast fact The typical Australian family will lose half or more of their income following a serious illness, injury or the loss of one of parent as a result of underinsurance. (Source: Lifewise/ NATSEM Underinsurance Report, 2010) Page 7 13 LIFE lifebroker.com.au

9 Your Journey with Lifebroker Lifebroker s team of consultants will guide you through the process of applying for personal insurance. From your initial enquiry through to the claims process, we re here to help. Welcome to Lifebroker Your enquiry, whether it is made online or over the phone, will be assigned to a dedicated Lifebroker consultant who will help you through the process of applying for Life Insurance. Compare policies Based on the information you provide and the insurance requirements outlined, your dedicated consultant will present you with a quote by comparing 11 of Australia s major insurance providers on an externally developed rating system. At this stage it is important for you to review the Product Disclosure Statement(s) and consider whether the quoted policy(s) is suited to your personal needs. Apply Applications can be completed seven days a week and a Lifebroker specialist applications consultant will help you through the process. Your application can be done over the phone or, if you would prefer, your application can be completed online using our Fast Track system. Your policy will be fully underwritten, so you know exactly what you will be covered for should you need to claim. If additional medical information is requested, your applications consultant will advise and assist with any further requirements or tests, depending on your medical history. If your payment details have been submitted, you will also receive interim Accident Cover while your policy is being processed. Policy goes into force Once your application is processed and accepted by the insurer, your policy will go into force; this means that you are covered with a fully underwritten policy, providing the peace of mind that comes with knowing that you will be appropriately covered when you need it most. Ongoing support After your policy goes into force, Lifebroker provides ongoing support to ensure your policy remains competitive as the years go on; help you compare policies should your circumstances change or in the event that you need to make a claim. Page Page 38

10 Benefits of an Underwritten Policy About What this Underwriting? guide Underwriting is the process that insurance companies use to review each insurance application. There are two types of underwriting for personal insurance. Medical underwriting: This is the process of reviewing your medical history as part of the application process. The underwriter might request a medical report or further medical information or tests, depending on the responses you provide on your application. However, this is only done with your permission; all the information that is disclosed remains completely confidential and is to provide you with the most appropriate cover. Also, the costs of additional medicals test are usually covered by the insurance company. Financial underwriting: This is more commonly used when applying for Income Protection. The purpose of this process is to ensure that the cover amount that you apply for is appropriate for your financial situation. It also ensures that you don t over insure yourself and pay a higher premium unnecessarily. Benefits of underwriting Underwritten policies provide you with the peace of mind of knowing exactly what you are covered for should you need to claim. Glossary Standard rates - This is when your policy goes into force without any loadings or exclusions in place (see below for definitions). Loading(s) - Depending on you medical history, health and lifestyle, there may be a percentage increase on your premium to account for higher risk activities or health problems. Exclusion(s) - Depending on your medical history, your policy may exclude cover for a certain illness or injury. Fast facts Approximately 93% of people who go through the underwriting process will not experience any difficulty and will end up paying the standard premium rates for their Life Insurance. (Source: Lifewise.org.au, 2012) In some cases, if your policy is not underwritten, you may have been paying the premiums but not have cover when you need it most.. Page 9 13 LIFE lifebroker.com.au

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12 Taking the next step Lifebroker is one of Australia s leading specialist Life Insurance brokers. About this guide Our goal is to help every Australian make the important decisions that will secure the ongoing financial wellbeing of their loved ones. With more than 10 years experience in providing quality, comprehensive personal insurance, you have the peace of mind that you are in trusted hands when you partner with Lifebroker. General Advice The information in this brochure is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on anything in this brochure, you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Every Life Insurance Product will have a Product Disclosure Statement (PDS) which is prepared by the insurer and you should read this carefully before making a decision about that product. If you have any questions about appropriate levels or types of insurance cover, you should speak to a properly authorised adviser. For many people Life Insurance is the missing piece in their financial plan. Hopefully this guide has helped you understand the vital role Life Insurance plays, and you will be ready to take the next step toward protecting yourself and your family. Once it s in place, you can rest easy in the knowledge that your financial plans are secure should the unexpected happen. For more information Visit our website Lifebroker holds an Australian Financial Services Licence Phone 13 LIFE ( ) Page Moray Street, Southbank, VIC 3006 P. 13 LIFE F