Definitions
Income Protection (IP)
Also known as ‘income replacement’, ‘disability income’ or ‘salary continuance’.
Insurance that will pay a regular income to a person if they are disabled by a sickness or injury. The maximum benefit covered is usually 75% of current personal exertion income after business expenses but before tax.
Life Insurance:
Term life insurance pays a lump sum benefit on the death of the life insured, during the term of the insurance.
Total and Permanent Disablement (TPD):
TPD cover pays you a lump sum of money if you are never able to work in your occupation or any occupation ever again, depending on the cover taken.
Own & Any Occupation TPD:
The definitions, as extracted from the Zurich PDS, read as follows:
1. Any or similar occupation.
This criteria primarily concentrates on a policy’s standard occupational TPD definition and the benefit amount that is payable under TPD cover.
The most critical aspect of any standard occupational TPD definition involves the specification of the policy holders disability precluding them from carrying out:
a) Any occupation for which they are reasonable suitedby education, training or experience.b) Any occupation at all.
2. Own occupation definition.
A policy provides a true Own Occupation definition, which consists of:
a) 6 month qualifying period; andb) unlikely to ever again perform own occupation.
Own Occupation means occupation that the Insured was engaged in immediately prior to disablement.
Trauma Cover:
A lump sum payment for those who suffer a major health trauma.
WARNING:
Trauma policies come with basic and extended cover. The difference between the two is the number of conditions covered and how well it covers them. We would only ever recommend that you take an extended policy.
As an example Asteron cover:
Some of the benefits below may have a 90 day qualifying period.
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Business Expenses Protection (BEP)
Business overhead or business expense insurance is designed to cover the usual fixed expenses incurred in maintaining a small business in the event the life insured is unable to work due to an injury or sickness. It is normally only payable for up to 12 months and is useful for self employed persons or those operating small businesses where the business relies solely or predominantly on the revenues generated by a key person to meet those expenses.
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