What different types of insurance are available?

There are many insurance policies available to sufferers of chronic or serious illnesses covering a variety of contingencies. These policies can be obtained through insurance brokers direct from the insurer or through your superannuation fund. Not all superannuation funds offer the same variety of insurance products, if any at all.

The most common types of insurance policies include:

• Life insurance: where a lump sum is usually paid out to your beneficiaries in the event of your death.
• Income protection insurance: pays a percentage of your income (usually 75%) if you become disabled and are unable to work.
• Trauma insurance: pays a lump sum once you are diagnosed certain conditions, e.g. cancer, or if you suffer a heart attack or a stroke.
• Total and Permanent Disability (TPD) Insurance: A lump sum benefit is paid if you are sick or injured and unable to work.

When taking out any insurance policy, the obvious yet critical rule is to carefully read the policy documents! Some policies have a very narrow definition of “disability” or “illness”, and you may not be adequately covered when you want to make a claim.

Be careful to disclose all the facts which are requested by the insurer when you take out a policy even if you don’t think they are relevant. If you haven’t disclosed all of the required information to an insurer, your claim may be refused.

The Australian Health Insurance Commission

administers health programs on behalf of the Commonwealth Government such as Medicare, Organ Donation, the PBS and Childhood Immunisation.
www.hic.gov.au

The Insurance Council of Australia

represents the Australian general insurance industry
www.insurancecouncil.com.au

business.gov.au

is a Commonwealth government initiative with links and information on a range of insurance options.
www.business.gov.au