A Quick Guide to Insurance Options

Income Protection

Trauma

(Critical Illness)

Life Cover

Total & Permanent Disability (TPD)

What is it?

Payable if your client is unable to work at full capacity or at all, due to sickness or injury

Payable if your client suffers a specified medical condition (Children's Trauma is also available and costs as little as $4 per month)

Payable on your client's death/terminal illness

Payable where your client is unable to ever work again due to sickness or injury

Payment type?

Monthly replacement income

Lump Sum

Lump Sum

Lump Sum

When does your client need it?

If they would find it difficult to maintain their lifestyle without their regular income

If they would like the security of a payment in the event they suffer from a debilitating medical condition

If they have any debts and/or dependants

If they have any debts and/or dependants

Owned by Super Fund

Premiums:

Deductible

Proceeds:

Not assessable to the Fund  (Assessable to life insured)

Premiums:

N/A

Proceeds:

N/A

Cannot usually be held via Super because it may contravene the Sole Purpose Test

Premiums: Deductible

Proceeds:

Not assessable to the Fund

Premiums:

Deductible only for 'Any Occupation' definition TPD from 1 July 2011#

Proceeds:

Not assessable to the Fund

Owned by Individual

Premiums:

Deductible

Proceeds:

Assessable

Premiums:

Not deductible

Proceeds:

Not assessable

Premiums:

Not deductible

Proceeds:

Not assessable*

Premiums:

Not deductible

Proceeds: 

Generally not assessable^

Common Causes for Claim

Accidents & Injuries, Mental Disorders, Cancers, Diseases (i.e. Heart, Musculoskeletal, Nervous System, Digestive System)

Cancers, Stroke, Heart Attack, Accidents

Cancers, Heart Disease, Accidents, Respiratory, Diseases

Diseases of the Nervous System, Blindness, Loss of Hearing, Loss of Speech, Mental Disorders, Chronic Lung Disease, Severe Rheumatoid Arthritis, Accidents (i.e. Major Head Trauma)