Life Insurance can be a godsend for families of the deceased in the event of death. If you want to leave a lasting legacy to your family you should consider a Life Insurance policy to assure they are taken care of financially if you die unexpectedly.

A Life Insurance lump sum payment is generally not tax deductible. It is payable to your beneficiaries, or your estate. The money paid can be used for any purpose the beneficiary chooses.

Life Insurance covers liabilities for capital gains tax, and helps to cover the financial loss experienced by the dependants of the deceased. Life Insurance premiums are only tax deductible if they re linked to a Superannuation Fund.

Who Should Consider a Life Insurance Premium?

• Parents with dependants
• The main income provider of the family
• Business people

Total & Permanent Disability (TPD)

A TPD Insurance cover protects you in the event of an accident or illness that leaves you unfit to earn an income the future. This type of insurance cover will pay out a lump sum to help relieve financial pressures.

Total & Permanent Disability Insurance can also be a viable solution for people who are unable to take out Income Protection Insurance, or those not in the active workforce. Many Life Insurance policies offer this type of insurance as an added optional extra.

Own occupation is payable by reason of accident or injury as to render you likely never again to be engaged in your own occupation.

Any occupation is payable by reason of accident or injury as to render you likely never again to be engaged in any gainful business, profession or occupation for which you are reasonably suited by your education, training or experience.

Total and Permanent Disablement can help with:

• Mortgage and general debt payments
• Protecting a business against the loss of sales and profits
• Maintaining business lines of credit
• Providing an income stream
• Providing funds for home modifications

These premiums are generally not tax deductible unless they are held in conjunction with a Superannuation Fund, or have been taken out as key person (revenue) insurance (benefits may be accessible).