Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a insure designated beneficiary a sum of money (the “benefits”) in exchange for a premium, upon the death of the person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses)are also sometimes included in the benefits.

Life insurance policies are legal contracts and the terms of the contract describe the limitations of the insured events.

Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

• Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment.A common form of this design is term insurance.

• Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms are whole life, and endowment policies in Australia. Today they are not very popular.

Total and Permanent Disablement is another form of life insurance benefit with similar qualities where a lump sum benefit is payable on the total and permanent disablement of an insured person. It may be written as a rider to a life policy or stand alone. If a rider to a life policy, it usually reduces the life insurance benefit by the amount of the claim in the event of total and permanent disablement.

Temporary Disablement usually relates to Income Protection such that an insured person receives a regular benefit(usually 75% or more of their normal salary) in the event of a temporary illness or accident that prevents the insured person from engaging in their normal occupation and may be paid for a lifetime with a variety of ancillary benefits as options.Owing to claims history and especially Mental Illness some life offices are increasing premiums to offset the higher claims being experienced today.

Trauma Insurance is similar to life insurance/TPD except that it provides a lump sum benefit upon diagnosis of a major trauma as listed in the policy document and schedules.There may be as many as 150 available benefits in this category some with restrictions on payment for a period of time.

These insurance types are best provided for by larger insurers who have strong financial health, and which we expect will be able to make payments in the event of claim arising.

Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract between an insured (insurance policy holder)and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) in exchange for a premium, upon the death, disability or total disablement of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses)are also sometimes included in the benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

• Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.

• Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms are whole of life, and endowment policies in Australia

Temporary Disablement usually relates to Income Protection such that an insured person receives a regular benefit (usually 75% or more of their normal salary) in the event of a temporary illness or accident that prevents the insured person from engaging in their normal occupation and may be for benefits a lifetime with a variety of ancillary benefits as options.

Trauma Insurance is similar to life insurance/TPD except that it provides a lump sum benefit upon diagnosis of a major trauma as listed in the policy document and schedules. There may be as many as 150 available benefits in this category some with restrictions on payment for a period of time.

These insurance types are best provided for by larger insurers who have strong financial health, and which we expect will be able to make payments in the event of a claim arising. Our experience in this market place puts us in a position of choice so we can provide the best available policy for you. We need to be confident that the life office will pay a claim, so price is not the best judge of the best policy.