One of the most common questions we are asked is ‘who needs what’ kind of insurance cover? This week we examine the major types of life insurance and give our opinion as to who needs to take out each form of cover.
The tax treatment of life insurance premiums can be complicated. That said, if you can make your insurances as tax effective as possible, you can save many thousands of dollars over the life of your policies.
Many people think that life insurances are limited to death cover, total and permanent disability cover and income protection cover. But there is a fourth kind of life insurance that is often overlooked - but that can be very useful in certain circumstances.
Total and permanent disability (TPD) insurance is one of the most important life insurances around. As the name implies, TPD insurance pays you a benefit if you become ill or injured and cannot continue working as you did prior to the illness or injury.
An insurer and the policyholder must be honest with each other. It is the very basis of the insurance contract. Full disclosure - or the duty of utmost good faith - is so important that it is even enshrined in legislation.
One of the most frustrating aspects of life insurance for clients is that not all policies are the same. This makes it hard for the ‘person in the street’ to ensure that the cover they take is the cover they need.
You may have heard the term underwriting in relation to your life insurance. Underwriting sounds serious. And, given why we need to take out life insurance, underwriting is relatively serious. But it is also quite straightforward. This article explains it all.