Life Insurance... Am I Still Covered?


Life Insurance... Am I Still Covered?

COVID-19 is proving to have disastrous affects for certain demographics, and this can cause concern. We are here to help alleviate that concern. Our financial planning division is here to provide professional and supportive guidance in the face of times like these. 


Why is life insurance so important? 

Life insurance at its very core is about protecting your family and yourself. It is designed to provide support during times of financial hardship and the unexpected. As we have already seen in the constantly unfolding COVID-19 pandemic, we can’t anticipate what is around the corner. Unforeseen tragedies such as illness, injury, permanent disability, and even death, unfortunately can occur at any time. As we all live through this unprecedented time, having life insurance in place simply means one less thing you need to worry about. By setting up the right policy for you and your family, your financial stress can be reduced, and you can focus on rebuilding in the face of change. In addition, this insurance can form part of what you leave behind as a result of death, securing the financial future for your loved ones. 


What is life insurance? 

Life insurance can come in four types of cover: 

  • Life insurance: provides a lump sum payment in the event of death and is designed to protect your family. 
  • Total and Permanent Disablement (TPD) Insurance: provides a lump sum payment if you become totally and permanently disabled. It is designed to help cover rehabilitation costs, repayment of debts, and the cost of living for you and your family. 
  • Trauma Insurance: provides a lump sum payment in the event you suffer a medical trauma that impacts your life and lifestyle. This might include things like a stroke, heart attack, loss of limbs etc. 
  • Income Protection (IP) Insurance: provides a payment up to 75% of your salary for a period if you’re temporarily unable to work due to sickness or injury. 


What if I have or contract COVID-19? 

Simply contracting COVID-19 doesn’t justify claiming, it is like any other temporary illness. However, if having the virus lead to your death or permanent complications, this would give rise to making a claim. Depending on your cover and given circumstances, you may be able to claim across TPD, Trauma and IP insurance. It is important to note that you must have cover in place prior to contracting the virus if you were eligible to make a claim. 

Are our approved insurers financially strong and able to pay claims in market volatility and even a recession? 

The Australian Prudential Regulatory Authority (APRA) requires that insurers have capital in place to pay claims that can support a 1 in 250-year event. All of our approved insurers have capital at between 150%-250% of these mandated levels by APRA, giving us great confidence in the capacity of our insurers to pay claims both now and over the longer term. This in turn should give you greater piece of mind. 


If you are considering taking out life insurance of any kind, start the conversation with our knowledgeable professionals who can guide you to the appropriate product for the support and cover you are trying to achieve. We are here to answer your questions and support you through these ever-evolving times. 


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