Life Insurance Explained
What is life insurance?
Life insurance is more than just vital financial help for those you leave behind when you pass away. It can also provide what we call 'living benefits’, or financial support if you’re in an accident, become seriously ill and can’t pay the mortgage, or put food on the table for the family. The general term ‘life insurance’ refers to the range of insurance that include:
- Life insurance (sometimes known as death cover)
- Total permanent disability insurance
- Trauma insurance
- Income protection insurance
Common events you can choose to be covered for
Here are some of the events you can choose to be covered for under your Qantas Life Insurance policy:
- If you pass away: your family receives a lump sum payment. This is available under Life Insurance where we offer Accident, Illness and Adventure Sports Covers.
- If you’re diagnosed with a serious critical illness such as a cancer (of a specified criteria) or you suffer a severe heart attack (of specified severity): you receive a lump sum payment. This is available under Trauma Insurance where we offer Critical Injury, Critical Illness and Cancer Covers.
- If you’re permanently disabled and unable to work: you receive a lump sum payment. This is available under Total Permanent Disability Insurance (TPD) where we offer Accident, Illness and Sports Covers.
- If you’re temporarily unable to work due to illness or injury: you receive a monthly benefit of up to $12,000 and 75% of your regular income (whichever is less). This is available under Income Protection Insurance where we offer Accident, Illness and Sports Covers.
How much life insurance do I need?
Your ideal level of cover is the one that best suits you and your family’s financial needs. Things to consider are:
- If you were to pass away, how much would your family need you to leave behind to make sure that they are still financially comfortable and are able to make payments like mortgages, school fees etc?
- If you were out of action tomorrow, how much would you need for you and your family to live comfortably?
- Do you have any major debts/liabilities?
- Does your partner work?
- How many kids do you have? How old are they & how long would they need to be supported?
Adding up the amounts above can give you a feel for how much your family would need to help cover your monthly expenses if you were to pass away or were out of action and not earning your income. The most important rule of thumb is to avoid being underinsured.