Assets
Easily converted shares, investments, or business that can provide immediate
cash for your family or partner.
Critical Condition Cover
Pays a selected percentage (usually 25%, 50%, 75% or 100%) of the Death
Sum Insured early in the event of: paralysis and dismemberment, heart
attack, open coronary artery bypass surgery, stroke, cancer, kidney failure
or major organ transplant. This can relieve financial strain when you
should be focused on recovery. This cover expires at age 65 and is available
under LifeCare.
Current Insurance Cover
The total amount of death cover that you have with any other financial
institution.
Death / Terminal Illness Cover
The amount you need to repay outstanding debt, and provide for any immediate
or ongoing income needs identified. Death and Terminal Illness provides
a lump sum payment (tax-free) should you die or are diagnosed with a terminal
illness, and are not expected to live for more than 12 months. This can
help provide for your family or partners’ basic living and other
lifestyle needs.
Debt
Such as a mortgage or personal loan. Please note this does not include
credit card or hire purchase payments.
Funeral Expenses & Legal Expenses
We suggest that $10,000 should cover most funerals and normal legal expenses.
Immediate Cover
Large, usually one-off expenses that may impact significantly on your
family if left unpaid e.g. mortgage, house improvements, new car.
LifeCare
LifeCare is a fully underwritten insurance product, which covers Death
and Terminal Illness and offers additional cover options of Critical Condition,
Temporary Disability, Permanent Disability and Redundancy.
Lifestyle Needs
Such as replacement of company car, house repairs, provision for partner’s
retirement, legacy for a niece/nephew or God child, etc.
Living Expenses
Suggestions: Children’s education ($52 per month is enough to cover
primary/secondary, $680 for private and tertiary starts at $1069 includes
living expenses). Child care ($900 per month for the first child, $1670
per month for a nanny for the first child. The costs for additional children
may be proportionately less). Housekeeper ($250 per month for 1 day per
week). Dependant Relatives ($420 per month for food, power, phone). Monthly
living (food, power, phone) – estimate your current expenditure.
Monthly Repayment Amount
This is the monthly repayment amount that may be covered in the event
that you are unable to work due to disability, illness or redundancy.
Ongoing income needs
Regular expenses your family or partner will need to pay such as living
expenses, education, etc.
Outstanding debt amount
The total amount owing on your loan – such as a mortgage or personal
loan. The monthly benefit applied for Temporary and Redundancy monthly
payments can be no more than 1.5% of this outstanding amount.
Permanent Disability Cover
Pays the lump sum amount specified in the schedule if you are permanently
disabled and unable to ever again engage in employment. If your policy
has a Temporary Disability cover the Permanent Disability will be assessed
when the Temporary Disability benefit has continued for 24 months. If
your policy does not include a Temporary Disability cover the Permanent
Disability will be assessed after 6 months from the date of the disablement
Permanent paid employment
Describes the average number of hours per week that a person works. Permanent
employment includes part-time work (as long as it is permanent), but does
not include temporary or seasonal work.
Policy Fee
A Policy fee of $50 is included in your LifeCare premium to cover Administration
costs.
Premium Term
Death and Critical Condition – 10 yearly, 5 yearly and yearly renewable
premium terms are available for these benefits. Permanent and Temporary
Disability and Redundancy – yearly renewable premium terms only
are available for these benefits.
Redundancy Cover
This is the monthly amount that may be covered, for up to 6 months should
you be made redundant. Redundancy cover is paid after an initial stand
down period of 30 days.
Replace existing life insurance
Ensure that an “Advice of Policy Replacement” form is completed.
Only cancel your existing cover when your new policy has been issued and
you are happy with the terms it was issued under.
Temporary Disability Cover
The Temporary Disability Benefit will cover your monthly debt repayments
for up to two years if you are unable to work as a result of illness or
injury. If your repayment amount changes, you will need to adjust your
cover to reflect this. This benefit is available under LifeCare.
Total Living Expenses
This figure calculates a lump sum based on the information you give us
that will provide the desired monthly income for a specified period of
years. When the insured person dies, a lump sum (e.g. $230,000) is deposited
into a bank account. Out of which, we assume, the sum of the nominated
Monthly Amounts (e.g. $2,000) are withdrawn each month. The sum remaining
in the account after each monthly withdrawal in the meantime will earn
interest. This is why the Needs Analysis calculates a lower present value
than you might think - because the ongoing interest earning ability of
the lump sum means you don't have to allow for quite so much in order
to provide the desired monthly amount. |