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HOME SUPER CHOICE SUPERANNUATION SMSF FIND LOST SUPER FAQ PENSIONS FAQ ACTUARY FINANCIAL LITERACY INVESTMENT SECTORS INVESTMENT MODEL FINANCIAL PLANNING SHARE TRADING WHAT BANK ACCOUNT LIFE INSURANCE BOOKS & TOOLS PORTFOLIO SYSTEM ABOUT US WHY SUPEREASY SMSF BENEFITS SUPERMAIL SERVICES OVERVIEW FEES SMSF SET UP SMSF ADMIN SPECIAL OFFERS CONTACT |
Life Insurance One of the benefits of having superannuation is that superannuation fund, depending on the type of policy, can claim a deduction related to the cost of providing insurance. Do I really need life insurance? Life insurance and disability insurance should be part of any financial planning strategy, because they act as a risk management and protection measure, not only for the insured party but also for dependants. We recommend that you seek professional advice before making any decision regarding your particular need for insurance. What is Term life insurance? Term life insurance is actually insurance against death. The primary purpose of this product is to provide a benefit in the event of death, terminal illness or total and permanent disability, if selected. What is a Whole of life policy? Whole of life policy is a term life insurance policy that includes an investment component. With this policy you receive a lump sum payment, the return on the investment portion of your premium, at policy maturity. What is an Endowment policy? Endowment is a very similar policy to the Whole of life policy that includes an investment component. With this policy you receive a lump sum payment, the return on the investment portion of your premium, at policy maturity or attaining an age specified in the policy. What is a Total and Permanent Disability (TPD) Option? This option provides you with a payment if sickness or injury prevents you permanently from being able to work. What is Waiver of Premium Option? Some term life insurance policies offer Waiver of Premium Option. This is an alternative to taking out TPD cover. Under the waiver of premium option, when you have been absent from your occupation for six months due to injury or illness, and you meet the definition of total and permanent disability, the insurance company will waive all your future premiums. This benefit will expire on your death in which case your life cover sum insured will be paid, or when you reach your first annual renewal date after your 65th birthday, whichever comes first. Check the option details with your insurer. What is Guaranteed Benefit Increase Option (GBIO)? This option allows you to increase your life cover sum insured at specified times, following the occurrence of certain events, without needing to satisfy any additional medical requirements. Check the option details with your insurer. How much do I need to insure for? This will depend on your particular circumstances, but the amount should be sufficient to:
What are policy benefits? The policy benefits will define your life cover conditions if you die or are diagnosed as terminally ill, while the insurance cover is current. For the details about your policy benefits check your plan benefits details. What is a policy premium? The premium is an amount you need to pay depending on your age, sex, smoking status, the amount of cover and options you require from your policy. What is Guaranteed Renewal? Regardless of any deterioration in your health, some insurance companies guarantee to renew your insurance cover each year. What are the types of premiums? Some life insurance companies provide their clients with two types of premiums, Variable and Guaranteed premium. Variable Premium is a premium where the premium rate can change at your next annual renewal date. Guaranteed Premium means that as long as your insurance remains in force, the premium will remain unchanged. Insurance companies will charge you an additional fee if you want to lock in the future premium rates and secure guaranteed premium. What is a premium freeze? Some life insurance companies provide their clients with the option for freeze of premium payments, with adjustment of your policy cover. This means your premium will not increase, but your cover will decrease. What are payment options? Usually you can choose to pay your premiums monthly, half yearly or yearly. Explain non-payment of premiums? That is the time period within which you must pay your premium to maintain your insurance cover. The insurance companies will usually give you 30 days to renew your policy. Your policy will be cancelled if you do not pay your premium within this period. What are the taxation aspects of life insurance? You should seek advice from a suitably qualified professional in relation to your particular circumstances relating to the taxation issues relating to payment of benefits and premiums. What is a cooling off period? That is the time period within which you can cancel the insurance. Please check with your insurance company for details. |
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SuperEasy Pty Ltd is not licensed to provide advice on investments, or legalities of the types of investments that you can have. SuperEasy® strongly recommends that you seek professional advice before making any investment choice or decision! |
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