Income and Life Insurance

Life insurance and income protection form part of your risk management plan which is designed to keep you on track if something unforeseen occurs.

There are four basic types of life insurances: life (death) insurance; income protection insurance; trauma insurance; and total & permanent disability insurance.

Life (Death) Insurance

Life insurance will pay your beneficiaries a lump sum if you die. Most beneficiaries use the lump sum payment to pay your liabilities, such as your mortgage. When considering how much you want to insure for, think about the following expenses and debts:

Income Protection

Income protection insurance will pay you a regular income if you become temporarily disabled from sickness or an accident. Most insurance companies only insure you up to 75% of your income. The payment is taxable, and is intended to help you pay regular expenses, such as:

Income protection premiums are tax deductible.

Trauma (Recovery) Insurance

Trauma insurance, also known as recovery insurance, will pay you a lump sum if you suffer from a serious medical condition. The lump sum is intended to pay related medical costs, extended rehabilitation fees, and provide you with breathing space from your commitments while you fully recover. A lump sum trauma payment can help you pay:

Total & Permanent Disability Insurance

Total and Permanent Disability (TPD) will pay you a lump sum if you become totally and permanently disabled. The lump sum is intended to pay your liabilities and replace your income. When considering how much you want to insure for, think about covering the following:


McKinnon Financial Planning Pty Ltd ABN 74 155 233 784 Australian Financial Services Licence 417488 | McKinnon Financial Services Pty Ltd ABN 82 056 817 648 Australian Credit Licence 392173 | General Advice Warning: Information contained in the pages of this website is of a general nature only and has not taken into account your particular circumstances. You should consider whether any strategies and or investments mentioned in this website are suitable for you and seek personal advice from a licenced investment adviser before making any investment decision.
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