Sometimes it can be tricky to understand the different types of insurance out there and the situations they cover you for. One way it can be explained is through a concept called the 'Disablement Process'.
In general, it’s rare for people to pass away suddenly (such as in a car accident). Usually a person goes through a process of steadily declining health called the 'Disablement Process'.
Each stage of this process brings its own financial challenges, from continuing to pay normal household expenses, to covering financial liabilities like a mortgage or providing the basics to those who depend on you.
To cope with each stage of the ‘Disablement Process’ there is a type of insurance which provides financial assistance.
Health Insurance
Health Insurance provides the funding to enable you to have private medical treatment whenever you require more immediate access or a broader range of treatment options than are available to you through the public health system. It can also help pay for things like trips to the GP and Physio, prescription medicine and glasses/contact lenses.
Income Protection
Income Cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to earn your regular income. The monthly benefit is designed to replace a significant portion of lost income to help maintain your usual lifestyle during treatment and recovery.
Trauma Cover
Trauma Cover provides a lump sum payment should you suffer one of the Covered Conditions listed by your provider. These could range from Cancer, Strokes, Heart Attacks, through to Dementia.
Total Permanent Disablement (TPD) Cover
TPD Cover provides a lump sum payment should you completely lose your ability to ever work again (or carry on your normal tasks, if you are not employed), as a result of illness or injury. TPD Cover is designed to help alleviate the significant financial impact that losing an income forever would likely cause.
Covered Conditions are by nature serious and potentially life threatening and, as a result, can have a significant financial impact. Trauma Cover is designed to help alleviate this financial impact.
Life Insurance
Life Insurance provides your family with a lump sum of money in the case of your death in order to protect them against the financial hardship that might otherwise follow.
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