Life, loan and income protection basics

There are many different types of insurance available. Policies can be created to offer a combination of benefits to best suit your specific needs and budget. That’s why it’s important to make sure you understand what each one does, to make sure it’s right for you.


Life insurance

Life insurance is probably one of the first types of personal insurance most of us think about. Although there may be variations, the main reason for having it is to provide your loved ones with an appropriate level of financial cover when you pass away. It gives you the peace of mind that those close to you can be cared for after you’ve passed away.

  • You decide the amount of insurance that you require. Whether it’s a smaller amount to cover basic funeral expenses or a larger lump sum payment so that your family can pay off debts and maintain their current lifestyle.
  • Often life cover policies can be paid early if you are diagnosed with an illness that is likely to result in you passing away within 12 months.


Income protection insurance

If you become unable to work through sickness or injury, income protection insurance can provide you with a steady stream of monthly income. You can also choose to add on cover for redundancy.


Critical conditions insurance

Critical conditions insurance can provide much-needed financial help for you and your family, at a time when you may need it most. If you suffer a serious medical condition in accordance with your policy, you can receive a lump sum to help cover things like:

  • Replacing loss of your income
  • Reducing financial commitments, such as your mortgage
  • Medical expenses
  • Private nursing care
  • Loss of income if a family member needs to stop working


Total Permanent Disablement insurance

Total Permanent Disablement cover provides a lump sum payment in the event that you become totally and permanently disabled and are unable to engage in either your 'own' or 'any' occupation, depending which type of cover you have. Having cover would help relieve some of the financial stress and worry for you and your family, in having to cope with a major impact to your life and lifestyle. The money can be helpful in covering the many additional expenses that can be incurred including:

  • Private nursing care
  • A replacement income if a family member has to give up work to care for you
  • To cover costs involved in renovating and setting up your home to fit your changing needs

Don't forget:

As your life changes, your insurance needs can too.

Review your insurance cover regularly, to make sure that you have the right level of protection. One of our ASB Insurance Managers can help you in selecting the right level of cover that you need. 

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Life and income protection insurance Life, loan and income protection basics