Life Insurance

Do You Need Personal Insurance Cover?

15 March 2022

The 4 Different Types of Life Insurance and How They Can Protect You and Your Family.

The right personal insurance cover can ensure that you and your family are best protected no matter what life throws your way.

So many people work incredibly hard to grow their wealth – through their career, through saving and through investments. But many of these same people have very little (or nothing) in place to protect their wealth.

To help you choose the most appropriate asset protection plan for yourself, consider using life insurance cover.

The 4 types of life insurance are:

  1.     Life Cover/Death Cover
  2.     Income Protection Insurance
  3.     Total and Permanent Disability (TPD) Insurance
  4.     Trauma Insurance

Not everybody will need all types. The best life insurance policy for you will depend on your personal circumstances.

Keep reading to find out more about how each type of insurance works and who they are designed to protect.


1. Life Cover/Death Cover  

Life cover provides a one-off payment (lump sum) when the individual with life cover passes away. 

This money will be given to those you have nominated as your beneficiaries – loved ones, your spouse, or your children. 

Who is Life Cover for?

Life cover is designed for those who want to ensure financial support is available for their family or loved ones should they pass away. If you have people who depend on your income, you may like to explore life cover.

An unexpected death is always unfortunate and emotional. However, with added financial stress, it can make it almost unbearable for the family left behind. Personal life cover is designed to ease some of this financial burden at a trying time. 


2. Income Protection Insurance

Income Protection (IP) Insurance provides you with temporary income if you are temporarily unable to work due to illness or injury.

IP can provide up to 70% of your normal pre-tax salary for a certain amount of time until you are healthy and fit to return to work again. The total coverage and timeline of payments will depend on your policy and will usually influence how much your premiums are on a month-to-month basis.

Read more about income protection benefits, costs and who IP is for.


3. Total and Permanent Disability (TPD) Insurance

TPD Insurance is a crucial benefit for yourself and your loved ones in the event you suffer from a permanent injury or illness, making it impossible to return to work. 

TPD insurance will provide you with a financial safety net to help support you and your family, allowing you to pay for medical and rehabilitation costs and any ongoing living expenses.

TPD insurance is similar to income protection; the difference is TPD insurance will cover you in the event you are never able to return to work while income protection helps support you until you are better. 

Who is TPD Insurance For?

While you can never predict when an accident or illness will happen, TPD insurance is designed for those who want to ensure if they were to become permanently disabled or ill, they would have sufficient income for themselves and their family.  

When deciding if TPD insurance is right for you, it’s wise to consider your living expenses and your current savings. TPD Insurance is especially important for those who have large ongoing living costs to consider such as a mortgage or other debts. Trauma Insurance


4. Trauma Insurance

Similar to TPD insurance, Trauma Insurance can help support you and your family if you happen to suffer from a critical illness or a serious injury or accident. Trauma insurance provides you with a lump sum amount and usually covers the following:

  • Cancer
  • Heart condition
  • Major head injury
  • Stroke

Who is Trauma Insurance For?

To decide if you need trauma insurance – and how much coverage you need – it’s important to assess what protection you have already. Consider the following:

  • How much income you and your family would need if you were unable to work for an extended period of time
  • If you have TPD insurance or income protection that may be able to provide financial support in the same circumstance
  • The potential expenses of a serious medical condition (and if you have private health cover to help)


Each life insurance cover offers unique benefits for various unexpected situations.

At Cambio Group, our financial planners offer personalised life insurance advice.

Whether you have no insurance or some cover in place, our insurance team can help you:

  1. Identify if you have adequate protection in place
  2. Discover ways to help you save on fees or pay lower premiums
  3. Put the right wealth protection plan in place to protect the financial future of you and your family

Get in touch with our team today to book your complimentary personal insurance review meeting. Book here.



Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

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