FAQ's

What is Life Insurance? 

What is TPD (Total & Permanent Disablement) cover? 

What is Trauma Insurance?

What is Income Protection? 

Income protection insurance provides a regular income if the insured is unable to work due to illness or injury. It ensures financial stability during periods of temporary disability. Income Protection does not provide a monthly benefit to your beneficiaries in the event of your death. 

What is the Waiting Period in Income Protection? 

The waiting period is the initial period you need to support yourself before the policy will beginning paying after the insured becomes unable to work due to illness or injury. During this time, no income protection benefits are paid. Common waiting periods include 30, 60, 90 days, 1 Year & 2 Years. 

What is the Benefit Period in Income Protection?

The benefit period is the duration benefits are paid for income protection. It can range from 1 month to several years and is dependent on the severity of the claim. If totally and permanently and unable to work for example, you would receive your benefits for the duration of the benefit period typically, 2 years, 5 years, or up to age 65.

What is Any Occupation definition in TPD?

Any occupation TPD defines disability as being unable to work in the insured's specific occupation. If the insured cannot perform their usual job, they receive the TPD benefit. You should always refer to your Insurers Product Disclosure Statement (PDS) for their specific definition, terms and clauses.

What is Own Occupation definition in TPD?

Own occupation TPD defines disability as being unable to ever work again in any job suited to your education, training or experience. If the insured cannot perform their usual job, they receive the TPD benefit. You should always refer to your Insurers Product Disclosure Statement (PDS) for their specific definition, terms and clauses.

What is Term Life as Superannuation?

Enables Life, TPD and Income Protection Cover to be held within a superannuation fund (super). It can be more cost-effective due to tax advantages and assist with cash flow as the premiums come from your super fund however the payments are subject to the Superannuation Industry (Supervision) ACT, SIS Act for Short and will also reduce your balance available to you to fund your retirement.

What is Stepped Premiums?

Stepped premiums start out cheaper when you’re young and are recalculated annually based on your age at the policy anniversary. While they are affordable initially, they become more expensive as you age because they increase each year to reflect your increasing mortality risk.

What is Level Premiums?

Level premiums are typically higher than stepped premiums at the outset as they can remain constant and do not increase with your age. They can be more cost-effective in the long term because they don’t rise as you age allowing you to maintain coverage for a longer duration. Level Premiums can still rise due to indexation (CPI Increases) or if an insurer adjust the premium rates applicable to the age your Level Premium rates apply. Level premiums will revert back to Stepped Premiums at the end of a fixed period, typically at Age 65 or 70.

What is a Statement of Advice (SOA)?

An SOA is a document prepared and provided by Safety Net Life Insurance Advice which details the personalised advice, research, life insurance quotes, recommendations and the rationale used to achieve the clients goals and objectives. It helps clients make informed choices and documents them in the Authority to Proceed (ATP).

What is Policy Ownership?

Policy ownership is in reference to who should own and subsequently pay the policy premiums. The options for policy ownership include, self-owned, cross ownership (own a policy on someone else’s life), owned in super including your own Self Managed Super Fund (SMSF) or owned by a Company. It is important to seek advice on the correct ownership structure of the policy as tax could apply to the benefits at claim time such as Capital Gains Tax (CGT) or Debt Forgiveness. Safety Net Life Insurance Advice can advise you in this regard or you can seek advice from your accountant or tax adviser.

What is General Advice?

General advice is financial product advice or information that is not tailored to an individual’s personal situation as it does not consider individual factors like your income, expenses, assets, liabilities, goals and objectives. Under General Advice, you are accepting the responsibility to determine if the product as well as the  types and levels of cover are appropriate for your needs rather than receiving personalised advice what to do.

What is Personal Protection Advice?

Personal Protection Advice is where Safety Net Life Insurance Advice will consider your question, How much life insurance do I need? Part of any wealth protection strategy is the identification and management of key risks, incapacity, illness or death. We do this by conducting a Financial Needs Analysis to assist in calculating what is needed to clear debts, remove a mortgage, cover children’s education and private school fee’s, medical expenses by providing a lump sum payout.

What is Business Protection Advice?

Business Protection Advice is where Safety Net Life Insurance Advice will consider your question, How much life insurance does my business need? The key objective been to ensure you have appropriate business insurance coverage to overcome times of uncertainty and removing the long-term impact of unforeseen events on your wealth, family and business. We do this by conducting a Financial Needs Analysis to assist in calculating what is needed to clear business debts that may be using your home as security, replacing a key person or people in your business to protect revenue and finally consider the involuntary succession plan of the business, how will the shares in the business be treated in the event of death or injury to an owner via a buy/sell agreement.

What is Wealth Advice?

A Financial Adviser with a focus on wealth creation, retirement planning, investment and superannuation  advice  will provide investment advice including buying/selling shares on the Australian Stock Exchange (ASX), Exchange Traded Funds (ETF’s), term deposits and managed funds to prepare financial advice to ensure you can retire comfortably. Safety Net Life Insurance Advice works with your Wealth Adviser to protect you, your family and your business if an injury, illness or death, derails your retirement and investment plans.

What is Estate Planning?

Estate Planning involves getting advice from your Lawyer / Solicitor to make arrangements for what will happen to your children (if minors), business, assets and debts in a situation where you are unable to act for yourself. Getting your affairs in order via a written Will, Enduring Power of Attorney (POA & EPOA), Advanced Care Directive and Testamentary Trust. Your Lawyer / Solicitor can also advise on Superannuation Beneficiary options.

Why have my premiums gone up so much?

This question gets asked on the anniversary of the policy after receiving your annual renewal from your insurer which usually includes your policy documents, policy schedule or a certificate of currency showing your cover and premiums for the next 12 months. Ultimately, this question can be answered by referring you to the questions above in relation to Stepped vs Level Premiums. In conducting a review of your wealth protection plan, Safety Net Life Insurance Advice will always market test insurers to ensure your premiums are comparable with other insurance companies to provide you with peace of mind or alternative pricing options.