Life insurance is a term used broadly for a range of insurance products, many of which can actually pay out whilst the insured individual is still alive.
Life insurance
Also known as death cover, this type of insurance typically provides a lump sum payout to a beneficiary upon the policyholder's death.
Trauma insurance
This covers certain medical conditions such as strokes, heart attacks and cancer, and is usually paid out in a lump sum to the policy holder to assist with medical and other living costs.
Total Permanent Disability insurance
You may also hear it referred to as TPD cover. This usually covers specific life altering injuries or illnesses that can see you totally and permanently disabled, and is usually paid out in a lump sum to the policy holder to assist with medical and other living costs.
Income protection insurance
Often referred to as IP, it can assist with lost income due to a range of reasons, depending on the terms and conditions of the policy. It's usually a set percentage of your regular income, which may be paid out in regular for the benefit period outlined on your policy - for example, a year, 2 years, or in some cases, until age 65 - or until you're well enough to return to work. It's designed to help you manage your regular living expenses while you get back on your feet.
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Working with a life insurance broker can help you to find which coverage could best fit your needs. We go into more detail here.
Disclaimer:
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