Types of Risk Insurance

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The implementation of these risk insurances will minimise or negate potential exposures that an individual, family or business may have. Below we have provided an overview and explanation of what each type of insurance is and potential condierations that should be addressed.

 Types of risk insurance

What is it?


Life Insurance

Life Insurance offers protection to your family and assets from the negative financial impact of premature death.

It is critical that you have sufficient life insurance coverage in place to cover all large debts and to be comfortable that your family’s lifestyle is protected.

Conditions may apply.

Total and permanent disablement (TPD)

TPD is where you become permanently disabled so that you cannot work again (in your usual profession or any profession of a similar type).

Usually paid as a lump sum.

Ensure that you have sufficient cover to allow you to live out the rest of your life on the claim paid.

Waiting periods apply.

Income protection (salary continuance insurance)

Income protection largely replaces regular income in the event of a temporary or permanent disablement due to sickness or accident, and ensures that expenses can continue to be paid during the period of absence from work.

Income protection premiums are tax deductible for most tax payers.

Income protection cover can only be provided up to a maximum of 75% of a person’s income. The premiums are tax deductible; however, if a claim is made, the income is taxable at marginal rates.

Waiting periods apply.


Trauma insurance (crisis insurance)

Trauma insurance, also known as crisis insurance, provides a lump sum designed to help people recover from a trauma or crisis.

This lump sum may be used to cover debts, loss of income whilst off work and medical expenses not covered elsewhere. This type of cover provides a tax-free lump sum payment should you be diagnosed with a terminal illness or specified condition.

In determining an adequate amount of cover, you should ensure that there are sufficient funds available to maintain current liabilities, fund education, provide ongoing financial support to your partner and pay for extended leave from employment.

Conditions may apply.

Business overheads expense insurance

This type of insurance reimburses business overheads generally for a period of up to 12 months. This type of benefit is paid monthly to insured persons while they are unable to manage their business due to sickness or injury.

Business overheads expense insurance may be used to cover recurring expenses such as rent or mortgage payments, electricity, heating and water costs, cleaning and laundry costs.

Waiting periods may apply.