Personal Insurance

Understanding Life & Disability Cover

In determining your insurance needs we need to establish the potential loss that could result from various risks. We need to decide what risks can be retained, what risks can be avoided and what risks must be transferred.

Insurance cover is about transferring your losses to someone else (the insurance company) for a price.

Sometimes there is a trade-off between retaining a part of a risk, such as being willing and able to cover the cost of an excess, and paying the cost of cover.

Therefore we not only have to address the potential risks, but also the cost of obtaining cover. Not only do you need to insure your possessions such as your home and your car, but you also need to protect your most valuable financial asset – yourself.

Other people such as your family &/or your business partners need to be protected if they will suffer a financial loss in the event of your premature death. And you need to protect your own income if you happen to suffer a disability and are unable to work.

Term Life Cover

Provides your surviving beneficiaries with a lump sum to help them meet their financial needs and objectives. This type of insurance provides a lump sum payment to a beneficiary, third party or an estate in event of your death. It would be normal for all or part of the benefit to be paid should you be diagnosed as terminally ill. You should be aware that suicide is not covered in the first 13 months of a new policy.

Total and Permanent Disability (TPD) Cover

Provides a lump sum payment if you become Totally & Permanent Disabled. The meaning of Total & Permanent Disability is defined in each policy document. Some occupations have an option as to which meaning of Total & Permanent Disability can be insured. The benefit is normally provided as an advance payment of a death benefit or on a stand-alone basis.

Trauma Cover

Provides a lump sum payment in the event of you being diagnosed with one of a specified range of critical illnesses or injuries. The list of conditions covered is often optional and varies between companies, as do the definitions of those conditions. Some trauma benefits are subject to a 90 day qualifying period. The benefit can be provided as either an advance payment of a death benefit or on a stand-alone basis.

Income Protection

Provides you with a regular source of income should you be unable to work for a period of time due to sickness or injury. You can generally insure for up to 75% of your earned income. There are a number of options available relating to waiting periods and benefit periods. You can also have an Agreed Value or Indemnity policy.


Trelaughney Pty Ltd
ACN 120 196 858, Corporate Authorised Representative (No 344068) of Aon Hewitt Financial Advice Limited
ABN 13 091 225 642, AFSL 239183
Registered Address: 85 – 87 Fitzmaurice St Wagga Wagga NSW 2650

Aon Hewitt Financial Advice Limited is a financial planning arm of Aon in Australia. Aon Hewitt Financial Advice Limited is not owned or influenced by a bank, insurance company or financial institution. This means that our advice is comprehensive, objective and based purely on your needs.