As people steadily approach the twilight of their lives, thoughts are directed towards retirement – perhaps taking a couple of cruises on the Caribbean. Often in tandem with this is the thought that old age will most certainly lead to death at one point or another. This is where the importance of a life insurance policy comes in.

There are mainly two types of life insurance: Temporary Insurance and Permanent Insurance. However, due to the growing needs of modern living, some subtypes have evolved. They are: term, universal, whole life, variable, variable universal and endowment life insurance. Term life insurance, more commonly known as Life Insurance, pays a lump sum upon the death of the insured. According to www.xlife.com.au, “There is no savings component to term life insurance, therefore, the insurance itself is typically more cost-effective than a savings type of insurance and are rarely offered in Australia today. Term life insurance is a policy that will pay a specified sum of money to the estate of the insured upon the death of the insured. In exchange, the insured person agrees to make regular payments of premiums (monthly, half yearly or yearly) to the insurance company.”

Permanent Life Insurance

Permanent Life Insurance

Permanent life insurance is a type of insurance that will remain in full force throughout the life of the insured. This acts just like KBC helmets protecting motorcycle riders all throughout their journey. When the policy matures or when the owner fails to pay the premium due, then that is the only time this insurance can be cancelled. There are three types: whole life, universal life and endowment. Whole life insurance means a table of cash value is provided by the company and also gives a level premium. Universal Life, on the other hand, aims to give greater flexibility in the payment of premium with the possibility of higher internal rate of return. Endowments according to wikipedia.org, “are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age.”

Total and Permanent Disablement Insurance (TPD):

There are many factors to consider when choosing the right savings account. For one, you have to think about when you want to receive the interest and how you want to access your money.



If you want to get the best deal in high-interest savings, one of the things that you can do is to compare different providers and find one that offers the package that suits your needs.

When you browse through a financial website, you can get useful tips on individuals savings accounts and learn about the different companies that offer ISA products.


Total and Permanent Disability Insurance (TPD) is commonly taken as an extra feature with term life cover, or on a stand-alone basis. TPD cover provides a lump sum payment in the event of total and permanent disablement. Most disability insurance policies are very similar. In order to file a claim, the insured should be unable to work for 6 months, and it is likely that he will never return to work again.

There are two types of TPD cover. Own occupation refers to making a payment when you are unable to perform your occupation (this is important for specialist occupations). The other, more common type is known as any occupation definition, wherein you can file a claim if you are unable to perform any occupation that you are suited to by education, training, or experience. The number of TPD claims being filed is rather small, if finances are a problem you could consider dropping this insurance.

In summary, the value of getting a life insurance policy lies in the security that an insured gets from the knowledge that his family will have something to rely on, in the event of his demise. This gives him the confidence to cruise through life knowing that his loved ones will have a good future.