Insurance plays an essential role in safeguarding your assets and also your current investment strategies. To ensure that should the unexpected happen financial goals can still be met you should make sure that your current insurance requirements are up to date and applicable to your requirements.
Be prepared for life’s emergencies

Imagine what your family’s life would be like if you or your partner died or became seriously ill and couldn’t work. Would you be able to survive financially?

Not being able to work as a result of an accident or ill-health could expose you or your family to financial difficulty. Insurance can provide the money you or your family need in these critical times.

It is a good idea to review your cover regularly, especially if something has changed in your life, for example, if you have taken out a home loan, are having kids or starting a business.

Types of life insurance

There are different types of cover that fall under the broad heading of life insurance. Depending on your circumstances you may need one or more of the following:

Life cover – also known as ‘term life insurance’ or ‘death cover’, pays a set amount of money when you die.  The money will go to the people you nominate as beneficiaries on your policy.

Total and permanent disability (TPD) cover – pays a lump sum to assist with rehabilitation and living costs if you are totally and permanently disabled. TPD is often bundled with life cover.

Trauma cover – provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on your life, such as cancer or a stroke. It is sometimes called ‘critical illness cover’ or ‘recovery insurance’.

Income protection – replaces the income lost through your inability to work due to injury or sickness.

Your APOS Financial Adviser can assist you with determining your required levels of insurance, arrange for an optimised policy and determine what strategy would best suit you and your family.

Step 1

Understand Your Insurance Requirements



Understanding Stepped Premiums

Your insurance premium will increase each year as you get older but is usually cheaper in the beginning.

If you’re thinking about this option, it is worth looking at what the premiums will be over the next 5 years, or however long you intend to hold the insurance for, to make sure you can afford the premiums.


Understanding Levelled Premiums

Your insurance premium does not change due to your age but is generally more expensive than a stepped premium in the beginning.

Level premiums may increase over time due to inflation adjustments or changes to the insurer’s fees.



Insurance Through Superannuation

Most super funds offer life insurance for their members. APOS Financial Planning can assist you to review your current life insurance policies, check what cover you currently have through your super fund, so you can compare it with other options.

In some cases, you may need to consider the effects of holding insurance inside the superannuation environment. Your APOS Adviser will guide you through the process and assist you to determine the best structure.

Step 5


After you and your APOS Adviser have agreed on the best structure for your insurance requirements, you are required to undergo underwriting.

Underwriting is a term used by life insurers to describe the process of assessing risk, ensuring that the cost of the cover is proportionate to the risks faced by the insurer. 

Approximately 93% of all applicants will not experience any difficulty with underwriting and will pay the standard premium rates for their life insurance.


Application Approved

Once underwriting has been completed, you will either receive a letter of modified terms or a letter of success.

If you receive notification that the terms have been modified, the insurance provider and your Adviser will explain why and at what expenses the insured can get coverage.

In some instances, this may come from an exclusion on your policy for a pre-existing condition or an increase in the premium.