Types of Personal Risk Insurances, What Do I Need and Why

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					     Types of Personal Risk Insurances,
     What Do I Need and Why

     A simple guide to Personal Risk Insurances
     This guide provides you with simple and easy-to-read information about Personal Risk Insurance, helping you to
     make informed choices about cover you may need.

WHAT IS LIFE                                   WHAT IS INCOME                                WHY DO I NEED TOTAL
INSURANCE?                                     PROTECTION?                                   AND PERMANENT
Life Insurance is a type of personal           Income Protection Insurance goes to
                                                                                             DISABILITY INSURANCE?
insurance that pays a lump sum benefit         work for you by providing much needed         TPD provides you with a lump sum
to a nominated beneficiary upon the            funds if you are sick or incapacitated        payment if you are permanently
death of the person insured. Some              and unable to work. By putting food on        incapacitated and unable to work.
policies may also include extra cover for      the table, petrol in the tank, stopping the
things such as: • Total and Permanent          bank from foreclosing on your mortgage
Disability (TPD) • Critical Illness, also      and keeping school fees paid, Income
                                                                                             WHAT IS CRITICAL
known as Trauma Cover or Crisis                Protection Insurance can help you             ILLNESS INSURANCE?
Insurance Life Insurance works in a            maintain a reasonable standard of living
similar way to car and home insurance          when you’re not well enough to go to          Critical Illness Insurance (also known as
in using a ‘pay as you go’ approach. As        work. Income Protection Insurance is          Crisis Insurance or Trauma Cover)
long as you continue to pay your               similar to your home insurance in             protects you financially in the event of
premiums you continue to be covered.           working on a ‘pay as you go’ scheme;          major illness or accident. Critical Illness
Life Insurance benefits are paid out in        offering you cover for as long as you         Insurance, paid to you as a lump sum,
one lump sum to your nominated                 continue paying your premiums.                can be used to support you when
beneficiary in the event of your death.                                                      adapting to a changed lifestyle, leaving
                                               WHY DO I NEED INCOME                          you free to concentrate on your
WHY DO I NEED LIFE                                                                           recovery. You could perhaps consider it
                                               PROTECTION                                    as a way of insuring your lifestyle.
INSURANCE?                                     INSURANCE?
Life Insurance offers financial security
                                                                                             WHY DO I NEED CRITICAL
                                               When you consider how vulnerable we
to those directly affected by the              are to an injury or illness that may make
                                                                                             ILLNESS INSURANCE?
premature death of a family member.            it difficult or impossible to work, taking
To help you understand the potential                                                         Major illness or accidents affect people
                                               precautions to protect your income            everyday and may strike at any time,
financial impact of the loss of a family       makes complete sense. Consider how
member consider how much you earn                                                            even to those we are close to. Though
                                               much you earn, multiply that by how           you can take steps to improve your
and multiply it by the number of years         many years you have until retirement,
until your retirement then add inflation                                                     general health and be more careful
                                               and then consider inflation and pay           when crossing roads this alone is not
and other income increases. The total          increases. It doesn’t take a
amount will probably surprise you. Life                                                      enough to provide you with a safety net
                                               mathematician to work out that some           against trauma. However, by taking out
insurance is more than just a lump sum         people may be risking hundreds of
payment; it puts food on the table,                                                          Critical Illness Insurance you can create
                                               thousands, if not millions of dollars if      your own safety net, financially
provides a comfortable home, a reliable        they were suddenly unable to work.
car and gives you the ability to choose                                                      speaking of course, giving you the
the right school for your children – in                                                      opportunity to concentrate on getting
short, everything that makes up your
                                               WHAT IS TOTAL AND                             better.
lifestyle. The alternatives to properly        PERMANENT DISABILITY                          Information in this guide is for general
insuring your life are not very practical.     INSURANCE?                                    information only and does not constitute
Saving an emergency nest egg for                                                             financial advice, taxation advice or
instance may not accumulate enough             Many Life Insurance policies will offer       recommendation, nor should it be relied on
funds in time and social security              Total and Permanent Disability (TPD)          as such. This guide does not consider your
benefits may not allow your family to          Insurance as an optional benefit, which       personal circumstances, individual
maintain their current lifestyle.              pays a lump sum benefit if you become         objectives, financial situation and particular
                                               permanently disabled and are unable to        needs. Before making a decision to acquire
                                                                                             a financial product you should obtain a
                                               work again.                                   Product Disclosure Statement (PDS) for that
                                                                                             product and read that PDS

                                  I-Protect Insurance is a registered business name of I-Plan Financial
                                  Planning Pty Ltd, a wholly-owned subsidiary of the I-Financial Group.
                                     I-Protect General Advice is a general advice service provided by
                                  accredited representatives of Wright Global Investments Pty Limited
                                                    ABN 82 097 478 487 AFSL 225058

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