What is Life Insurance?
There are a number of different types of life insurance cover available including:
- Term Life Insurance which provides a lump sum payment if you die due to either sickness or an accident or if you suffer from a terminal illness.
- Total & Permanent Disability Insurance (TPD) which provides a lump sum payment in the event that you suffer an injury or illness that is serious enough to result in you being unable to ever return to work.
- Trauma Insurance which provides a lump sum payment should you suffer any one of a number of specified serious injuries or illnesses, such as heart attack, cancer or stroke.
Your application for these types of insurance will usually be subject to underwriting which means you will need to answer a series of questions to the satisfaction of the Insurer in order to have your application accepted. These questions will often relate not only to your health but also your lifestyle and occupation. Alternatively, the cover may be offered without the requirement for any medicals or health questions and instead a pre-existing medical condition (or ‘PEC’) exclusion will apply.
Why might you need Life Insurance?
When it comes to deciding if you need life insurance, it’s good to think about how you and your family would cope with expenses such as mortgage repayments, household running costs and medical bills if something was to happen to you. Choosing the cover that is right for both you and your family’s needs can provide a real lifeline should you suffer a critical or serious illness or injury.