Life Insurance Add-ons
While a life insurance policy is designed to make provision for remaining family members in the event of your death, if a severe accident or a serious illness should occur, it could also have a devastating impact on the family and the finances. A loss of your income and unexpected medical expenses can spell disaster for the unprepared. And while a typical Whole Life policy is designed to offer benefits upon death, there is now a range of “add-on” cover offered by many insurers, and these are designed to provide benefits in other serious circumstances.
Accidental Death Insurance
One commonly opted for insurance add-on is the Accidental Death Insurance benefit. This benefit provides your beneficiaries with an additional sum in the event of accidental death. However, these policies often have very specific fine-print regarding when and under what circumstances death is deemed accidental.
Total and Permanent Disability Insurance
Total and Permanent Disability Insurance, also known as TPD Insurance, covers you in the event that you become permanently disabled and are prevented from working. This add-on may provide benefits such as medical expenses cover, funds to subsidize the cost of carers while compensating you and your family for wages lost. The provisions of this type of insurance add-on can vary quite widely, so it’s important to do your research beforehand.
Trauma Cover is a potentially valuable add-on that protects you financially in the event of a sudden injury or serious illness. Trauma Cover can help cover the gaps not covered by your existing life insurance or health insurance policies by protecting you from financial exposure. Trauma Cover can help cover your medical costs, expenses such as equipment and carers, and loss of income. Trauma Cover is paid out in a lump sum, helping to ensure that you have the money at hand when you need it.
Income Protection Insurance covers you and your family in the event that you become seriously ill or injured and therefore unable to work. It can be a vital add-on if you are the sole or major breadwinner in the home and if your family couldn’t get by without your salary. Where other policies may cover your medical treatment, Income Protection benefits are designed to help you stay on top of those regular costs such as mortgage repayments and utility bills.
To ensure that you and your family are thoroughly protected, consider some of the available add-ons when looking at life insurance policies. The majority of providers, including AIA, Allianz, Macquarie, and AMP offer add-ons, so don’t be afraid to ask about expanding your policy to a level that offers complete security for your family.