It’s too expensive and complicated
Ensuring you have sufficient cover to protect you and your family could cost less than you think. The cost of insurance for you will depend on your individual circumstances and insurance needs, so speak with your adviser for more information.
The examples in the table below show that for around $4.40 a day, a 45 year old non-smoking male could take out $750,000 worth of Life cover, as well as TPD cover1.
| Type of insurance | What it does | What it costs |
| Term Life | Term Life Insurance pays a lump sum amount if you die or are diagnosed with a terminal illness. | Around $2.50 a day for $750,000 cover1. |
| Total and Permanent Disablement (TPD) | Total and Permanent Disablement (TPD) Insurance pays a lump sum benefit if you are unlikely to work again due to a permanent disability. | Around $4.40 a day for $750,000 Life and TPD cover. |
| Living Insurance | Living Insurance (sometimes referred to as trauma insurance or critical illness) pays a lump sum benefit if you suffer from one of a range of specific medical conditions such as cancer, a heart condition or loss of a limb. | From around $6 a day for $500,000 Living Insurance. |
| Income Protection | Income Protection Insurance replaces up to 75% of your income (and 100% of compulsory superannuation contributions) while you are unable to work due to sickness or injury. | From around $1.30 a day to provide Income Protection of $3,000 per month, and the premium may be tax deductible. |
| Business Overheads | Business Overheads Insurance pays as monthly benefit if you are unable to work in your business due to sickness or injury. | From around $1 a day to provide Income Protection of $3,000 per month, and the premium may be tax deductible. |
1Based on rates for BTPP Term Life policy issued by an Independent Financial Adviser current as at 21 February, 2011. Lower rates are available for policies paid through a BT Wrap account.
Learn more about Myths
- She’ll be right
- Insurance never pays
- It’s too expensive and too complicated
- Savings, medicare, health insurance, investments will protect me
Did you know?
Insurance is considered by many financial experts to be a fundamental part of any sound financial plan. Insuring yourself properly adequately will mean you can cope financially if the unexpected happens to you.
Taking out insurance through super can be cheaper and tax-effective.
