Risk Insurance Australia

Risk insurance is a group of personal insurance products designed to protect you and your family financially if something unexpected happens. The main types are income protection, life insurance, total and permanent disability (TPD) insurance and trauma cover. Each does a different job, and which ones suit you depends on your income, debts and family situation.

Life insurance pays a lump sum if you pass away or are diagnosed with a terminal illness. TPD pays a lump sum if you can never return to work. Trauma cover pays a lump sum if you’re diagnosed with a listed serious condition. Income protection pays a regular monthly benefit if you can’t work due to illness or injury. PFGA explains how they fit together, so you can see where your gaps might be.

Generally, income protection can pay up to 70% of your regular income for a specified period, called the benefit period. The waiting period, which is how long you wait before payments begin, also affects your premium. The details vary by policy, so we’ll compare them with you.

Often, yes, but it depends. Premiums for income protection held outside superannuation are generally tax deductible. Policies that pay a lump sum, such as life, TPD and trauma, are generally not tax deductible. Income protection benefits are usually taxable. Tax treatment depends on your circumstances, so speak with your accountant.

Possibly. More than 70% of life insurance policies in Australia are held inside superannuation funds. Cover through super can be useful, but the amount, definitions and conditions may not suit your needs. PFGA helps you check what you have, so you can decide whether it’s enough.

It depends on your debts, income, living costs, family and future plans. A good starting point is to think about what would need to be covered if your income stopped, such as your mortgage, your family’s daily costs and any business obligations. PFGA works through this with you and shows you the options at different levels of cover.

Possibly, but it depends on the insurer and your health history. Insurers may accept your application as is, add an exclusion or a higher premium, or decline cover. It’s important to answer all medical and lifestyle questions honestly and completely, because mistakes can affect a future claim. PFGA guides you through the application and the questions insurers ask.

It might not. A new property, a refinance, a growing family or a change of job can all change the cover you need. We recommend reviewing your cover whenever your loan or circumstances change, so you’re not paying for too much or too little.

PFGA explains how we’re paid, and any fees that may apply, before you proceed, so there are no surprises. To talk through your situation, call us on 1800 574 055 or book an appointment.