5 Camp St, Kangaroo Flat 3555 03 5447 2899

Risk Insurance

Protecting your financial security

What would you and your family do if you unexpectedly became ill or injured and were unable to earn an income indefinitely?

  • Would you be able to maintain your lifestyle?
  • Would you be able to repay debts?
  • If you have a business, would it survive?
  • Or worse, if you died, would your family cope financially?

If you’re unsure, personal insurance might be worth considering – in fact it’s considered an essential part of any financial plan.

Personal insurance cover can help protect you and your family by providing a financial benefit should something unexpected happen such as illness, injury or death.

Who should consider personal insurance?

Personal insurance is appropriate for anyone who relies on their income to support themselves and/or their family. It’s particularly important if you:

  • have new or existing debt
  • don’t have adequate savings
  • are a single income household
  • have a family or dependents
  • are a business owner.

What types of personal insurance cover are available?

Different types of insurance can help in varying situations. Some of these can be combined together in one policy.


Income protection

Purpose: To cover the essential costs of daily living if you become unable to work

This provides a benefit of up to 75% of your income if you become ill or unable to work due to accident or injury. Depending on the situation, benefits can continue to be paid until age 65. Premiums are generally tax-deductible if cover is held outside of super.


Income protection replaces your income if you cannot work due to sickness or injury. It is important because your income is what funds your life today and your plans for tomorrow.

When you think about what life would be like without your regular income, your earning capacity becomes possibly your greatest asset. Chances are, you’ve based the achievement of your goals and ambitions on having a regular cash flow. If you became ill and were unable to work and maintain that cash flow, your goals may no longer be achievable.

Income protection insurance pays you a monthly benefit and generally covers up to 75% of your pre-tax salary or taxable income (net of expenses) and can be owned individually or inside of superannuation. The premium is tax deductible.

The premium for an income protection policy depends on many factors as follows:

  • Occupational duties
  • Monthly benefit amount
  • Age
  • Sex
  • Smoker/Non-Smoker
  • Health/Pastimes
  • Policy Structure (see below)

An income protection policy is available in a standard or comprehensive version, with the comprehensive policy providing a greater range of features and benefits.

The policy will also provide the option of structuring your benefit as “agreed value”’ or “‘indemnity’.  Agreed value provides you with a certainty of future benefits, whereas the indemnity benefit is not guaranteed. The indemnity benefit provides a premium discount and is generally suited for those persons with a stable income (e.g. regular salary earners). Please note that where an income protection policy is owned within ‘superannuation’, then indemnity is the only option available.

You will also have the choice of paying a “stepped premium”, where the cost of the cover will increase yearly with age, or structuring as a “level premium”. You will pay more initially for the level premium option; however the benefit will generally be a lower overall premium if the policy is held for the long term.

All income protection policies have a waiting and benefit period and these can be structured to suit your individual needs and budget.  Longer waiting periods can be suitable where sick-leave entitlements or other ongoing income is payable in the shorter term. A longer benefit period provides greater protection.

The range of waiting and benefit periods are generally as follows:

Waiting Periods: 14-days, 30-days, 60-days, 90-days, 180-days, 1-year & 2-years.

Benefit Periods: 2-years, 5-years, Age-55, Age-60, Age-65 and Age-70.

Note: Not all of the above waiting and benefit periods are available with every company and we would be happy to discuss your personal situation and provide you with a recommendation.

Life (Death)

Purpose: To provide your family enough to pay debts, meet immediate expenses and maintain their standard of living if you die

This provides a one-off payment to your beneficiaries if you die. This can help your family repay debts, pay for funeral expenses and medical bills and maintain their lifestyle.

What is life insurance?

Life insurance (death cover) provides you with a lump sum benefit in the event of the death of the life insured. A life insurance benefit can help your family continue to live the life you have planned together by providing benefits to meet the following circumstances:

  • focus on living life without worrying about finances
  • payout the mortgage on the family home, or fund a new home if renting
  • keep the kids at their school and make future education plans
  • provide ongoing day to day living expenses

Death insurance can be owned either outside or within a superannuation fund, however if the benefit is held within a superannuation fund, your individual situation may lead to taxation of the benefits.  We would be please to discuss this with you further and provide a recommendation to meet your current circumstances.


Total and Permanent Disability (TPD)

Purpose: To help maintain your standard of living if you become seriously disabled

Provides a one-off payment if you become seriously disabled. This can help provide for immediate and ongoing medical needs, any home modifications and to pay any remaining debts.

What is TPD?

Total and Permanent Disability (TPD) is your financial back-up plan. It provides you with a lump sum in the event of permanent disability, buy providing a one-off payment that can help you:

  • fund lifestyle changes and home modifications
  • cover the cost of long term medical expenses
  • pay off and debts
  • fund ongoing income for your family

The level of cover will depend on your own personal circumstances and we would be pleased to assist you in determining the most suitable level of cover. TPD insurance can be included in a policy with your death cover, or as a standalone policy, either in or outside of superannuation.

Please note however, if the TPD is included in a superannuation policy, it is subject to the same preservation rules as your super fund and may also be taxed if the funds are withdrawn prior to age-60.


Purpose: To help you keep on top of things if you suddenly become seriously ill

Provides a one-off payment in the case of a serious illness such as cancer or heart attack. This can help pay for medical costs associated with treatment, repay any debts and unexpected expenses.

What is trauma insurance?

Trauma (or critical illness) insurance pays you a one-off lump sum if you have a serious medical condition (e.g. cancer, stroke or heart disease). Trauma cover is designed to fill the gap which neither income/disability cover nor private health cover would provide.

At times like this, you and your family could experience serious financial trouble. With trauma insurance you would have access to benefit payments upon confirmation of any of these illnesses.

Trauma insurance payments can be used for whatever purpose you choose, whether it be specialist medical attention, covering the cost of home modifications, repaying debts or travel for recuperation.

How can I obtain insurance cover?

For a no obligation assessment of your current situation, then please contact our office. STB Advisory Pty Ltd has access to a wide range of leading insurance providers and our comprehensive service considers all of these options when providing a recommendation to you.