Insurance Glossary

A few insurance related terms you should know…

Advisor (Insurance) – What they do.

A qualified financial adviser will guide, assist and educate you on the most suitable insurance options from a range of companies to suit your needs the needs of your family and your business. Qualified advisers can also assist you with your investments and superannuation.

Insurance – What is it?

Insurance involves the transfer of risk in exchange for a consideration (or premium). By paying premiums to an insurance company, you transfer the risk of losses from specific events from yourself to the insurer. The “insurance contract” (or policy document), specifies the events you are covered (insured) for and can claim on.

Income Protection – What does it do?

If you are unable to work as a result of an accidental injury or an illness, income protection insurance provides you with a monthly payment during the period you are unable to work. Read more about Income Protection Insurance.

Life Insurance – What does it do?

Life insurance offers financial protection for your family and other dependents in the event of your death. Typically in the event of your death, your dependents (or nominee) receive a lump sum payment to help them continue to pay for living expenses and pay off debts. to pay a lump sum of money on death to provide for your family and/or dependants. Read more about Life Insurance. 

Total and Permanent Disability (TPD) Insurance – What does it do?

Total and permanent disability (TPD) insurance provides a lump sum payment if you are totally and permanently disabled before retirement and can’t work again.

Trauma Insurance

Trauma insurance (or critical illness insurance) pays you a lump sum if you’re diagnosed with one of a number of specified major illnesses or injuries, such as cancer or heart attack.

Read more about Trauma and TPD insurance

Want to know more?

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The information contained in this outline is of a general nature only. It has been prepared without taking into account any individual's objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness having regard to your own objectives, financial situation and needs.