Protecting You & Your Income.
Total & Permanent Disability
At Financial Aspects we are here to help you with the right insurance at the most appropriate time of your life. We can review your current insurance cover and guide you if you need to update or change your personal insurances.
Life insurance pays a lump sum to beneficiaries upon the death or terminal illness of the insured. The sum insured is made up from adding together debts, future income requirements of a spouse, future education expenses for children, funeral costs and those types of things. As life progresses, generally the sum insured should fall commensurate with debt being repaid, children progressing through school, and spouses requiring replacement income for a lesser time frame.
Total & Permanent Disability (TPD)
TPD pays out a lump sum should someone suffer a serious injury. The definition of disability can differ between products, and options within products, but generally in order to be able to make a successful claim you must be unlikely to ever again be able to work in an occupation that you are suited to by way of education, training, or experience. To calculate a sum insured, a very similar method to life insurance is employed, but an allowance for possible medical expenses/home modifications can be added in. Frequently Life and TPD are bundled together in the same policy to access some premium discounts.
Seriously anyone with a job, and who has debts or a family should have some type of income protection. Income protection pays an ongoing income stream up to 75% of the insured’s pre-disability (either injury or sickness) income for the duration of the benefit period selected by the insured. There is generally a waiting period selected as well, which must expire before any payments will be made by the insurance company. If you think about it, this makes sense, because an insurance company doesn’t want to be paying claims for people who are off work for two weeks with the flu.
Also called critical illness, crisis recovery, or some other description, this type of insurance pays a lump sum should the insured suffer one of the specified medical conditions defined within the individual policy. These policies can differ markedly from one another, and it is vitally important to have one that covers a broad range of conditions, whilst also being up-to-date with advancing medical technology. This means that should the wider medical profession update their definition of a heart attack for example, the insurance company adjusts the policy definitions in line with that.