Life is full of uncertainties and sometimes unfortunate accidents can happen.
What happens if I die?
What happens if I have a serious accident?
What happens if I’m diagnosed with a terminal illness?
How will my family cope?
Answering these questions is tough. Not answering them is worse. AWS can analyse your insurance needs, ensuring that adequate insurance policies are in place, reducing the financial burden on your family in the unfortunate event of a serious accident occurring.
Insurance is a contract which compensates a client when a defined event takes place. People make regular payments (known as premiums) to an insurance company that will pay them an agreed amount if some particular event occurs. A person called an actuary works out how much a person should normally pay for insurance. Each specific application for insurance is assessed and the final premium is based on the likelihood of an event occurring.
AWS has access to more than 10 insurance providers to source the best package to protect you and your family.
A life insurance policy provides a lump sum in the event of your death.
Life insurance is necessary for the majority of people as it provides funds to:
- Cover costs such as funeral expenses, legal fees associated with the implementation of your Will and government charges (the government has first claim on your estate for unpaid income tax)
- Repay debts such as your home mortgage and personal loans
- Provide a lump sum to replace your income and provide security for your family
- Cater for the ongoing need to provide housekeeping and child minding for your family in the event of your premature death.
Total & Permanent Disablement (TPD) Insurance
TPD provides a lump sum benefit in the event that you become totally and permanently disabled.
You may need TPD to:
Cover your mortgage or pay other debts
- Create a regular income for you and your dependants
- Meet medical costs
- Meet the costs of a modified lifestyle due to being disable, for example, a nurse or home modification
There are two types of TPD policies from which to select:
- Own occupation TPD – covers you if you are incapacitated to the extent that you are unable to work again in your own occupation.
- Any occupation TPD – covers you if you are incapacitated to the extent that you will never return to work in any occupation that you are suited to by education, training or experience.
TPD policies require you to be totally unable to work for a period of time before the insurance company is persuaded that you will be totally unable to work ever again based on the definition within the policy. However, depending on the particular disability suffered and the report from the medical professionals, a payment of a TPD benefit may potentially be received a lot earlier than waiting periods described in the policy.
Income Protection Insurance
An Income Protection Policy replaces a portion of your income if you are unable to work due to accident or illness. Unable to work can be defined as:
- Being unable to perform at least one important income producing duty of your regular occupation
- Not currently working in any gainful occupation
- Being under the care of a medical practitioner
The maximum amount of Income Protection allowable is 75 per cent of your earned income.
Why do you need Income Protection?
For most people, their most valuable asset is their ability to earn an income. Having Income Protection Insurance in place effectively allows you to protect your most valuable asset. It will enable you to pay for regular living expenses while you are unable to work.
A waiting period will apply before payments will commence and can be between two weeks and two years in duration. This in turn will affect the premium payable and will be determined on an individual basis.
Trauma cover is designed to provide a lump sum payment if you suffer a specified medical condition or serious injury for the first time (eg. serious heart attack, stroke, cancers, paraplegia etc). Trauma cover can cover death, however definitions vary greatly between policies.
Why do you need Trauma Insurance?
An example is best used to illustrate the effectiveness of having Trauma Insurance in place.
Fred has both TPD and Trauma policies. He had a serious heart attack and is ill but is able to return to work after two months. Fred did not receive a TPD pay out, as he was not considered to be totally and permanently disabled. By having trauma insurance, Fred had access to a lump sum of money to supplement his income protection policy. This enabled Fred to take a stress free holiday and pay off his debts.
Trauma cover pays out on the actual occurrence of the incident. This will ensure that you have the funds available to seek the medical treatment that require and hopefully return to good health.