Also known as Term Life Insurance, Life Cover or Death Cover pays an agreed lump sum of money in the event of your death* or terminal illness (ie an illness from which you are expected to die within 12 months, according to a medical practitioner, thereby allowing for an advance payment).

This can be used to:

• Pay off all debts
• Provide a lump sum of money for your family to live off

Some Loss of Licence policies may also provide a level of Life Insurance cover, but this may be limited to 'accidental' death only meaning that it may not pay a benefit in the event of an illnesses such as cancer or heart attacks! Even if full cover is included, you should check if this will be enough to meet your individual needs.

*Exclusions apply such as death due to suicide in the first 13 months

TPD Cover provides a lump sum payment if you’re totally and permanently disabled.

TPD Insurance can be used to help cover:

• Rehabilitation costs
• Repayment of any outstanding debts such as your home and / or investments
• The ongoing cost of living for you and your dependants
• Any possible lifestyle changes you may need to make such as modifications to your home or the purchase of special equipment to aid with the change to your lifestyle

*Restrictions for TPD apply to Pilots

Also known as Critical Illness Insurance, Medical Catastrophe Insurance and Crisis Recovery insurance, pays a lump sum in the event that you suffer a medical trauma event. Most insurers cover a specific list of ‘trauma’ events which may include diabetes, Alzheimer’s disease, loss of limbs, stroke, heart attack, cancer, and brain tumours.

In the event of being diagnosed with a trauma condition, you and your family can use the lump sum benefit payment to:

• Pay off debts
• Pay for lifestyle changes such as special medical equipment or to modify your home (if required) 
• Pay for the cost of rehabilitation or medical bills such as specialists and treatments such as chemotherapy which can be very expensive

Trauma insurance is not a replacement for income protection insurance or private health insurance. It can be used to complement these insurance by providing a lump sum for peace of mind (ie repaying your home) or to cover potentially large expenses associated with the trauma event.

Income Protection will generally cover up to 75 percent of your salary for a period if you’re temporarily unable to work because of sickness or injury. This type of policy is generally tax deductable and the benefit payments made to you would be subject to taxation at your marginal tax rate.

It is important to note that income protection is NOT designed to cover a scenario whereby you become unemployed due to unforseen circumstances such as liquidation of your company or redundancy.

When establishing Income Protection you need to consider:

• Your current sick or long service leave entitlements
• Any Loss of Licence insurance you may already have
• Whether you intend to work part time, take maternity/paternity leave or leave without pay in the forseeable future

Income protection provides cover in the event of an extended inability to work due to illness or injury once you have used up your sick and holiday leave. You may receive up to 75 per cent of your income until you return to work or to the end of the benefit period. This benefit period can be two years, five years or up to the age of 60 for pilots. Cabin crew can only choose from a two or five year benefit period. All policies for pilots and cabin crew expire at the age of 60 irrespective of the benefit term.

Loss of Licence Insurance (LoL) is especially designed to offer an additional level of cover for Pilots if you loose your licence due to illness or injury. This is usually a combination of short term income protection (also known as temporary loss of licence cover) and a lump sum if you are still unable to resume flying after a specified period. Temporary Loss of Licence cover can in some cases provide you with up to 95% of your monthly salary to enable you to regain your health to a point where you can continue flying. Should you be unable to regain your health to allow you to fly, a total and permanent loss of licence scenario will apply whereby you may then be eligible for a lump sum payment. We can help you determine how these covers fit with a long term income protection plan as well as any other life or disability insurances.

There are a number of Loss of Licence covers available to Pilots (mostly direct with your union or airline)providing a range of cover and different benefit amounts in the event of a permanent loss of licence. It is therefore essential to ensure you read the relevant Product Disclosure Statement (PDS) carefully.

For all of the above insurance types, please make sure you read the insurer’s product disclosure document (PDS) carefully to see what conditions are included and excluded.