This advertorial has been written by our third-party product provider NobleOak Life Limited
Life insurance, Income Protection, Trauma insurance, and Total and Permanent Disability (TPD) insurance are all different type of insurance products. They are all designed to provide financial protection, but in different circumstances. The key features of each of these products are summarised below.
Purpose: Life insurance provides a lump sum payment (death benefit) to your beneficiaries or estate in the event of your death. Life insurance may be important if you have financial dependents and want to protect their financial wellbeing if you pass away. The funds may be used to cover funeral expenses, replace lost income, pay off debts (e.g. mortgages), and provide for your dependents.
Pay out details: There is usually a funeral advance benefit, which is an advance of $15,000 of the life cover amount to assist with funeral expenses. Life insurance payouts will also be advanced if you are diagnosed with a terminal illness condition and have less than 24 months to live.
Purpose: Income protection insurance provides a replacement income if you become unable to work due to illness or injury. Income protection can be valuable if you rely on your income to maintain your standard of living or don’t have sufficient savings or sick leave to cover extended periods of disability.
It covers a portion of your lost income, typically up to 70% of your pre-disability income for a designated period. With most policies, you will be able to choose the period for which you will be entitled to claim benefits. For example, with NobleOak’s FlexiCover Income Protection product (called Individual Disability Income), you can choose to receive payments for either up to two years, five years or up to 65 years of age.
Pay out details: Benefits are generally paid as regular monthly payments, often with a waiting period before the payments start.
Purpose: Trauma insurance provides a lump sum payment if you are diagnosed with a specified critical illness or medical condition (e.g., cancer, heart attack). These will be specified in the Product Disclosure Statement. For example, with NobleOak’s FlexiCover Trauma Insurance, 37 serious medical conditions are covered. Trauma insurance can be beneficial if you need financial support in dealing with medical expenses and lifestyle changes following a critical illness diagnosis.
The lump sum payment can help cover medical expenses, treatment costs, and lifestyle adjustments during recovery.
Pay out details: The benefit is paid upon diagnosis, and you do not have to be permanently disabled or pass away to receive it.
Purpose: TPD insurance provides a lump sum payment if you become totally and permanently disabled due to an illness or injury, preventing you from ever working again. It can be used to cover medical expenses, rehabilitation, and lifestyle adjustments due to disability. TPD insurance may be helpful if you want financial security in the event of a severe disability that leaves you unable to work.
It typically covers disabilities that render you unable to perform work in your occupation or any occupation.
Pay out details: The benefit is paid when you meet the policy’s definition of total and permanent disablement. This definition may vary between policies.
Some people may take out all available insurance products and some may only take out one or two. It really depends on your personal circumstances and what is most important to you. Factors to consider when doing your research may include your current financial obligations, savings, number of dependents and the funds you would need to maintain the lifestyle you're accustomed to if life took a turn for the worse. The premium you pay will be based on the insurance products and amount of cover you attain, your age, health and lifestyle.
Reasons to consider NobleOak’s FlexiCover Life Insurance
General advice in this material is from NobleOak Life Ltd AFSL 247302
This material is a promotion for NobleOak. Qudos Bank does not provide any financial advice in connection with life insurance – it is not licensed to do so. General financial advice in this material is provided by NobleOak and does not take into consideration your individual circumstances, objectives, financial situation, or needs. You should carefully consider the PDS and the target market determination to decide if NobleOak life insurance is right for you.
*First month free offer - if you apply for cover and cover is issued you will not start paying premium until one month after the commencement date of the cover. This offer is available once only per new customer and may not be used in conjunction with any other offer.
^NobleOak awards information found at https://www.nobleoak.com.au/award-winning-life-insurance/
FlexiCover is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 (‘NobleOak’). Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 55 AFSL/Australian Credit Licence 238 305 (‘Qudos Bank’) is not responsible for the FlexiCover product. Qudos Bank promotes the FlexiCover product under a marketing arrangement with NobleOak but does not provide any financial advice regarding the product. NobleOak Services Limited (wholly-owned by NobleOak) pays Qudos Bank an ongoing commission of 16.5% of premium when products are acquired as a result of the marketing arrangement. This commission is at no additional cost to customers. Further information can be found in the NobleOak Financial Services Guide (FSG) available at www.nobleoak.com.au.
Cover is available to Australian residents only and is subject to acceptance of the application and the terms and conditions set out in the FlexiCover Product Disclosure Statement (PDS). This information is of a general nature only and does not take into consideration your individual circumstances, objectives, financial situation or needs. Before you purchase an Insurance product, you should carefully consider the PDS to decide if it is right for you. The PDS is available by calling NobleOak on 1300 108 490 or from www.flexicoverlife.com.au/qudos.
The Target Market Determination for NobleOak’s FlexiCover insurance is available at www.nobleoak.com.au/target-market-determination.
Clients should not cancel any existing Life Insurance policy until they have been informed in writing that their replacement cover is in place. NobleOak cannot provide you with personal advice, but our staff may provide general information about NobleOak Life Insurance. By supplying your contact details, you are consenting to be contacted by NobleOak, in accordance with NobleOak’s Privacy Policy.
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