Personal risk insurances provide a financial benefit in the event of you suffering a serious injury or illness, or death. They include term life insurance, total & permanent disablement insurance, income protection insurance, and trauma insurance.

What is life insurance?

Term life insurance pays a lump sum on the death of the insured, or if the life insured is diagnosed with a terminal illness and has usually, less than 12 months to live.

How much term life insurance do you need?

A recent survey by Rice Walker Actuaries found that only 4 out of every 100 Australians have adequate life insurance. And that 60% of families would be in financial distress just one year after the breadwinner died. * As a rough guide, the ready reckoner below will help you calculate how much life insurance you and your spouse need.

What is income protection insurance?

This insurance is designed to replace your income if you are unable to work due to sickness or injury. It provides a monthly payment of usually up to 75% of your pretax income.

You can generally choose the waiting period (this is how long you must be unable to work before the insurance begins to pay you) and the benefit period (how long the policy will pay you if you are unable to work).

Importantly, the premiums for income protection insurance are usually tax deductible. The cost of this insurance varies based on the waiting period, the benefit period, your income, and occupation.