The insurance risk
- An estimated 106,000 new cases of cancer are diagnosed in Australia each year. (1)
- 1 in 2 men and 1 in 3 women will be diagnosed with cancer before age 85. (1)
- Cancer is the leading cause of death in Australia – more than 39,000 people are estimated to die from cancer each year. (1)
- More than 60% of cancer patients will survive more than five years after diagnosis. (1)
- Cardiovascular disease kills one Australian every 10 minutes. (2)
- Cardiovascular disease prevents 1.4 million people from living a full life because of a disability caused by the disease. (2)
- Around one in six Australian men suffer from depression at any given time. (3)
- From puberty onwards, women are twice more likely to experience depression than men. (3)
- The Cancer Council of Australia – www.cancer.org.au/aboutcancer/FactsFigures - January 2008
- The Hear Foundation – www.heartfoundation.org.au/heart_information/statistics.htm - January 2008
- beyondblue – www.beyondblue.org.au– January 2008
- Centrelink – www.centrelink.gov.au – January 2008
A brief summary of the main risk insurance products currently in the marketplace
Life Cover
This type of insurance provides a lump sum payment to a beneficiary, third party or an Estate in the event of your death. It would also be normal for all or part of the benefit to be paid should you be diagnosed as terminally ill.
Total & Permanent Disablement
This type of insurance provides a lump sum payment if you become totally & permanently disabled. The meaning of total & permanent disability is defined in each policy document. Some occupations have an option as to which meaning of total & permanent disability can be insured. The benefit is normally provided as an advance payment of a death benefit or on a stand-alone basis.
Trauma
This type of insurance provides a lump sum payment in the event of you being diagnosed with one of a specified range of critical illness or injuries. The list of conditions covered is often optional, and varies between companies, as do the definitions of those conditions. The benefit can be provided as either an advance payment of a death benefit or on a stand-alone basis.
Income Protection
This type of insurance provides you with a regular source of income should you be unable to work for a period due to sickness or injury. You can generally insure for up to 75% of your normal income and there are a number of options available relating to waiting periods and benefit periods.
Business Overheads
This is a specialised form of risk insurance designed for people who are self employed or in a partnership. It provides for a regular payment to cover the fixed costs of running the business should you be unable to work for a period due to sickness or injury.
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