Life and Disability Insurance

Family and lifestyle are important to most people.  We can refer you to options to consider that can protect you and your family when it matters most.

 

OPTION 1

Have a tailored tax effective insurance plan put together by one of our specialist advisers. Speak to a financial adviser directly on 03 9520 2999 or email financialplanning@abphillips.com.au

 

What type of insurance is available?

There are a range of insurance options available that can be tailored to suit your needs and personal situation. The most common types of life insurance include:

 

Income protection

In the event that you are unable to work due to illness or injury, income protection provides you with a monthly benefit. This is paid for an agreed period of time while you are unable to return to the workforce.

The premiums that you will pay for this type of policy are generally tax deductible. If you hold your insurance within super, the super fund is able to claim a tax deduction on income protection insurance premiums which can reduce the cost of the cover.

 

Life Insurance

Life insurance helps alleviate the financial burden your family may be left with after your death. Usually paid as a lump sum, your dependants may use this money to assist with medical costs, funeral expenses or help secure their financial future.

The cost depends on the amount of cover (age, gender and smoking status are also determining factors) you choose.

The level of cover you have should be reviewed regularly to ensure it remains suitable.

To make a decision on how much cover you require, you should consider the following:

  • your children’s school fees
  • services you would require if you were unable to care for your children, such as a nanny
  • how much your dependants would require to meet their day‑to‑day living expenses, and
  • current liabilities, such as your mortgage.

Life insurance forms a critical part of the financial planning process, providing financial security for you and your family. A sound financial plan will encompass both wealth creation and wealth protection.

 

Total and permanent disablement (TPD)

This is generally taken as an optional extra within a life insurance policy, but can also be arranged as a stand-alone policy. In broad terms it provides a lump sum in the event of a permanent disability that prevents you from returning to work. This lump sum can be used at your discretion to provide for your dependants, to compensate for the loss of your income, repay your debts or cover capital gains tax liabilities.

There are certain conditions that need to be met to receive a TPD benefit payment; these vary significantly between insurance providers. Before taking out TPD insurance it is important that you understand the conditions under which the insurance company will pay a claim.

 

Trauma

Trauma insurance is generally paid as a lump sum upon diagnosis of an eligible condition (eg cancer, heart disease), and the funds can be used at your discretion. You can use it to pay for additional medical care or to pay off the mortgage and relieve the financial pressure on your family.

This benefit is paid to you when you are diagnosed with an eligible condition. This will ensure that you and your family have a lump sum to cover rehabilitation, carer costs or just day‑to-day expenses when you most need it.

 

THINGS TO CONSIDER
 

Should you get your life insurance within your superannuation fund?

Many superannuation funds will provide you with the option of purchasing insurance through the fund. You can potentially benefit from tax deductions and cheaper costs when you hold insurance within a superannuation fund.

There is, however, often a wider choice of insurance cover available outside of your superannuation fund.

 

Understanding insurance definitions

It’s important to understand your cover as it may help you avoid any complications if you or your estate need to make a claim. You should read and understand the product disclosure statement along with the entire policy document. If there’s something you are unsure about, ask your financial adviser to clarify it for you.

 

How much cover do you need and what type?

You should ensure your cover is adequate and that you are not over, or under, insured. The kind of life insurance that you need depends on a number of factors such as your:

  • lifestyle needs
  • dependants, and
  • personal financial circumstances.

Your financial adviser can help you select the most appropriate life insurance option and provider, and can review your insurance cover regularly to make sure it remains appropriate to your ongoing needs.

 

Contact:

Financial Affairs on 03 9520 2999 or email financialplanning@abphillips.com.au


The information on this page is general in nature and does not constitute advice. You should obtain and consider our Financial Services Guide (FSG), relevant Product Disclosure Statement (PDS) and Statement of Advice (SOA) before making any decision to acquire a product.


OPTION 2

We have an agreement with Austbrokers Life Pty Ltd and *Suncorp (refer below) to provide referral services in relation to Austbrokers Life Solutions insurance, which has the option to provide Death Cover, Income Protection Cover, Serious Illness Cover and Kids Cover in the one policy.

We act as a mere referrer only and do not provide any advice on this insurance – you need to decide if it is right for you. See “our role” below for details.

Find out more about Austbrokers Life Solutions here.

Alternatively call the Austbrokers Life Solutions Contact Centre on 1300 161 635 to speak to a consultant, Monday to Friday, from 8am to 8pm AEST, or contact Financial Affairs to organise a call back for you.


*Austbrokers Life Solutions is issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530, AFSL 229880 (Suncorp) and is distributed by Suncorp Financial Services Pty Ltd ABN 50 010 844 621 AFSL 229885 (SFS). Suncorp is the insurer except for the redundancy benefit which is insured by AAI Limited ABN 48 005 297 807, AFSL 230859 (AAI). Suncorp, SFS and AAI are subsidiaries of Suncorp Group Limited ABN 66 145 290 124 (Suncorp Group). The different entities belonging to the Suncorp Group are not responsible for, or liable in respect of, products and services provided by other Suncorp Group entities.

Our role: We do not provide any financial services, including any financial product advice in relation to life insurance. Nothing on this page should be read as implied or expressly endorsing or recommending life insurance to you.

We refer you to SFS in relation to Austbrokers Life Solutions products under an arrangement with Austbrokers Life Pty Ltd ABN 23 614 273 915 AFSL 491816 (Austbrokers Life).

If you buy an Austbrokers Life Solutions policy, a referral fee will be payable by SFS to Austbrokers Life. This referral fee is included in your premium and will be shared between Austbrokers Life (who receive up to 20% of the referral fee) and us (we receive up to 80% of the referral fee). For Level Premium products, the referral fee will be up to 20% of the premium paid in the first year and up to 10% of the premium paid for each subsequent year. For Stepped Premium products, the referral fee will be up to 20% of the premium paid for the first year and for each subsequent year.

It is important that you read the Austbrokers Life Solutions insurance combined Product Disclosure Statement and Policy Document (PDS) and Financial Services Guide (FSG) before making any decisions regarding whether to acquire Austbrokers Life Solutions. You can also call 1300 161 635 and request a copy free of charge.