Types of Cover Life Insurance Can Offer
Taking out life insurance can be one of the most important decisions that you will make regarding the well being of your family. It is sometimes a morbid topic to think about, but anyone with a family can recognise the importance of their well being well after you are gone. It is important to know that there all kinds of life insurance available on the market today. We most commonly think of life insurance as something that relates to the death of an insured person. This is not entirely true as there are many important events in one’s life that may hinder them from providing for his or her family. In this case, it is essential to learn more about the types of life insurance coverage that you can purchase below that will protect your family from financial ruin:
• General Life Insurance – The most common form of insurance is life insurance which pays out a lump sum upon your death. This money can be used to take care of funeral arrangements, mortgage payments, debt, your children’s education and to maintain your family’s comfortable lifestyle.
• Income Protection Insurance – Your income is extremely important as it is the means to support your family. With this type of insurance, you can cover up to 75 percent of your current income in the case that you are injured, ill or deemed unfit to continue working. This type of insurance is also referred to as salary continuance insurance, income replacement insurance and disability income insurance. Payments can be made up until the age of 65 in certain cases.
• Business Expenses Insurance – this type of insurance protects your business if you are unable to continue working due to an illness or injury. It is normally used for self employed business people.
• Key Person Insurance – this insurance police covers any losses of a business due to an illness, death or injury of a person who is key in the success of your business.
• Total and Permanent Disability Insurance – This type of insurance pays off a lump sum to a person who becomes disabled permanently to the point where he or she is unable to ever work again. This money can be used towards medical bills, home renovations, nursing care, daily expenses, to pay off debt and earn an annual income to continue your lifestyle arrangements.
• Trauma Illness Insurance – This type of insurance policy offers a lump sum of money upon the diagnosis of a disease, illness or trauma that is listed in the policy holder’s insurance contract. Such illnesses include head trauma, cancer, strokes and heart attacks.
If any of these types of insurances seem beneficial to your situation, then you should learn more about them in depth. With this type of insurance you will be able to provide for your family, regardless of what happens to you.
Medibank Private is Australia’s largest private health insurer and now offers flexible life insurance that can be tailored to your needs.
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