In today’s uncertain world, life insurance stands as a stalwart shield, offering both you and your cherished ones financial security against unforeseen circumstances.
Life insurance serves a multifaceted purpose, tailored to address various potential scenarios:
- Life Cover: Providing a lump sum payout in the event of your passing.
- Total and Permanent Disability (TPD) Insurance: Extending financial aid through a lump sum to assist with rehabilitation and living expenses in cases of permanent disability.
- Trauma Insurance: Offering coverage upon diagnosis of severe illnesses, alleviating the financial strain during challenging times.
- Income Protection Insurance: Acting as a safety net by substituting a portion of your income if incapacitated due to illness or injury.
For those who were clients of Freedom Insurance between 2010 and 2018, there may be compensation entitlements awaiting.
Before delving into life insurance, it’s imperative to scrutinize the finer details. By law, insurers are mandated to furnish a Product Disclosure Statement (PDS), outlining critical aspects such as:
- Coverage inclusions and exclusions.
- Information requisites for the insurer.
- Insight into premium structures and potential fluctuations.
- Waiting periods preceding claim submissions.
- Guidelines for initiating and escalating complaints regarding claims procedures or outcomes.
Additionally, it’s prudent to ascertain whether life insurance coverage is already embedded within your superannuation. Avoid redundancy and ensure optimal utilization of resources by averting duplicative insurance expenses.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Wealth, with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at www.hippowealth.com.au.
