Have you checked up on the levels of cover of your life and TPD insurance?

Will your policy provide your family with enough funds to manage financially if you should pass away suddenly or become permanently disabled? 

Furthermore, there are two types of TPD cover. One covers you if you are deemed to be unable to work in your “own occupation” and the other covers you if you are deemed to be unable to work in “any occupation”. Most TPD insurance offered through a superannuation fund is on an “any occupation” basis. Furthermore there are circumstances where a superannuation Trustee may not be able to pass on the benefit of such insurance when it is required.

Do you know which situation you are covered for?

The Australian Bureau of Statistics recorded that in 2006, two-thirds of all registered deaths were caused by cancer or heart disease. Could your finances cope with the expenses incurred from cancer treatment or recovering from major heart surgery? Families of cancer patients have been known to remortgage their homes in order to obtain the health treatment their loved one requires at a time when they are already coping with grief and emotional stress. Trauma cover can assist with these expenses. 

Don’t forget to protect your income!

While life, TPD and trauma cover all pay a lump sum benefit in dramatic circumstances, those temporary injuries and illnesses that take longer than the amount of sick leave available to you can also affect your income. 

All personal insurance policies differ between insurance companies as does the level of cover they provide. It is important to review your insurance requirements with your Avenue adviser.

April 2009