Insurance Types

There are four different types of insurance.

Each of these can help you cope financially with events that may affect your financial future.

Three are paid as lump sums and the other as a regular income. While you can purchase all separately, they are designed to work best in combination with each other.

Life Insurance

Insures against which event?

Death.

Life Insurance can help your dependants cope financially, after you die.

You might use the benefit to...

  • pay off the mortgage or any other debts
  • reimburse funeral costs
  • pay for child care
  • provide income

Total and Permanent Disablement

Insures against which event?

A total and permanent disablement where you are no longer able to work due to accident or illness.

You might use the benefit to...

  • pay for disability related costs including rehabilitation
  • pay for changes to your lifestyle, for example, refitting your home
  • enable your partner to reduce their working hours to look after you, or alternatively get a carer or pay off debts
  • provide an income for you and your dependants
  • pay off debts

Trauma

Insures against which event?

Traumatic medical conditions (including cancer, heart attack, stroke, coronary artery bypass surgery and angioplasty).

You might use the benefit to...

  • pay for recovery costs including rehabilitation
  • pay for changes to your lifestyle, for example, refitting your home
  • enable your partner to reduce their working hours to look after you, or alternatively to get a carer
  • pay off debts
  • provide a reserve to use as an income

Income Protection

Insures against which event?

The inability to work due to sickness or injury, after a specific waiting period and for a defined benefit period.

You might use the benefit to...

  • Maintain your basic household lifestyle
  • pay for food, and other day-to-day expenses
  • pay for rent or home maintenance costs
  • help you meet mortgage or other debt repayments
  • pay for any transport costs you may have