Life and Death: Protecting You and your Loved Ones with Life Insurance



Health combined with your ability to work and earn money is the most valuable asset most of us will ever have. Without the ability to generate an income, it is very difficult to financially sustain your existence – a fact of life that job seekers will be all too aware of. Being healthy and able-bodied enough to work is something that can easily be taken for granted.

After we die, our financial responsibilities may live on, leaving loved ones who depend on our income with our debts, mortgages and other expenses. Unexpected death can leave our loved ones left in dire financial situations if we do not plan ahead. There are, however, safeguards that we can put in place to help support us and anyone that relies on our income, in case of serious illness, disability or death.

Life Insurance is available in Australia and is an investment intended to take care of the financial responsibilities (mortgage, debts and other expenses, such as a funeral) if we die or become incapable of working. Taking out a Life Insurance policy does not just benefit those who depend on us in case we die prematurely or unexpectedly – serious illness and disability that may also be covered, depending on the plan.

There are several different types of policy that fall under the classification of Life Insurance, which provide cover for different scenarios and situations;

Life Insurance

Claims paid out in lump sums upon death or diagnosis of terminal illness.

Trauma Insurance

Claims paid out in lump sums upon diagnosis of specific serious illnesses such as cancer, heart attacks or strokes. Trauma insurance allows policy holders to focus on their recovery and for treatment, care and supports you and anyone depending on your income if your working hours are reduced or you need to cease working altogether.

Total and Permanent Disability Insurance

Claims paid out in lump sum in case of disability that prevents you from ever working again.

Business Expenses Insurance

Also referred to as Key Person Insurance, this covers self-employed people to help manage business expenses if policy holders suffer illness, serious injury or die. Claims paid as a lump sum.

Income Protection Insurance

A subcategory of Life Insurance, Income Protection Insurance may also be known as Disability Income Insurance, Income Replacement Insurance or Salary Continuance Insurance. Rather than the lump sum payment typical of traditional life insurance claim payouts, Income Protection Insurance pays a regular replacement, or partial replacement of the income earned during the policy holder’s working life until retirement age.

It pays to know unforeseen circumstances can diminish or entirely prevent our ability to earn an income, but that our financial commitments may remain long after we die. Different policies are designed to cover people in various financial and living situations, and it is important to compare plans for the most appropriate policy. iSelect can make it simple to find the best value and most appropriate plan.