Personal & family protection
There are two main types of life insurance.
The one most people need is ‘term’ insurance. This pays out if the policyholder dies within a stated period – the ‘term’.
The other type – ‘whole of life’ insurance – pays out on your death, whenever that occurs. This is more of an investment vehicle than a financial protection plan and is typically used for estate planning.
Serious and critical illness insurance
Serious illness and critical illness insurance plans pay out a tax-free lump sum on the diagnosis of a range of serious (but not fatal) conditions.
It often comes as an optional addition to a life insurance policy, but can also be purchased on its own.
Income protection policies provide a monthly payment to help replace your income if you are unable to work because of an accident or illness.
Short-term income protection policies will pay out for a fixed amount of time, whereas long-term income protection policies are designed to replace your income for a longer time like until retirement.
Accident protection or accident and injury cover pay a fixed amount of money for specific injuries, depending on the level of cover