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LIFE INSURANCE

A BRIEF EXPLANATION…

Life Insurance is the term given to five products- Term Life, Trauma cover, Total & Permanent Disability, Income protection and Business Expense cover.

1. TERM LIFE INSURANCE

This is death cover which provides a lump sum payout upon death or on diagnosis of a terminal illness where you’re unlikely to survive beyond 12 months. Its purpose is to provide release from debt and family protection; it pays outstanding debts, such as mortgages, and leaves a lump sum to be invested to cover the cost of future family needs such as children’s education.

2. TRAUMA INSURANCE

Also known as Living benefit, Critical Illness cover and Recovery Money provides a lump sum to assist you if you are diagnosed with any of the defined events in the policy such as Heart Attack, Stroke, Cancer to name a few.
Its purpose is to provide financial relief from hardship so you can concentrate on recovering and making any necessary lifestyle changes. The money pays debts, medical costs and a lump sum to be invested to cover lifestyle changes necessary to your recovery and getting on with life.

3. TOTAL & PERMANENT DISABLEMENT (TPD)

Total & Permanent Disablement (TPD) Insurance pays a lump sum in the event you become totally and permanently disabled and are unlikely to work again. It can provide financial assistance to help you meet rehabilitation and associated costs. It can also be used to cover living expenses.

Its purpose is to provide financial relief in the wake of being unable to work again and provides financial assistance to ensure your needs are taken care of and your family continues to maintain their existing lifestyle.

THE MAIN DEFINITIONS ARE:


 

OWN OCCUPATION

This pays out a lump sum in the event you are unlikely to ever perform the duties in the occupation that they were last engaged in immediately prior to the event giving rise to the claim.

ANY OCCUPATION

This pays out a lump sum in the event you can no longer perform the duties of your usual occupation or any that you are reasonably suited via education, training or experience.

HOME DUTIES

This pays out in the event the insured person is unlikely to ever again carry out all normal  household duties.

GENERAL COVER

Loss of independent existence, or total and permanent: loss of use of two limbs, loss of use of a limb and loss of sight in one eye, or loss of sight.

4. INCOME PROTECTION

This cover provides a regular payment, generally per month in arrears. Income Protection Insurance replaces up to 80% of your monthly income so you can continue to meet your day-to-day living expenses until you get back on your feet. Premiums paid are generally tax deductible, whilst any claim benefit received is income tax assessable.

Its purpose is to provide financial security by eliminating hardship and protect your family’s lifestyle in the event of temporary disablement due to sickness and/or injury by providing a replacement income, should an accident or sickness strike the breadwinner.

5. BUSINESS EXPENSE COVER

Business Overheads helps to keep your business running if you are unable to work due to sickness or injury. This cover provides a regular payment, generally per month in arrears. It can be used to pay 100% of eligible business expenses like electricity, gas, rates and rent.

Its purpose is to take the pressure off you whilst sick or injured so you can focus on recovering knowing that you have taken care of your day-to-day business expenses and helps protect your livelihood by giving your business the cash flow it needs to cover day-to-day expenses, so you can focus on your recovery. Premiums paid are generally tax deductible.

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The Mirus Group trading as McFarlane Orr and Co is an Authorised Representative (ASIC Corporate AR No. 262094) of Securitor Financial Group Ltd, ABN 48 009 189 495 AFSL 240687