Optional benefits you can add to your family life cover

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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Take a moment and think about what would happen to your loved ones should you fall critically ill or pass away? Do you a financially sound future lying ahead for them? Family life cover is created to help protect and provide your loved ones with a financially sound future that does not seem them struggling financially. It is an affordable cover that can give you and them peace of mind knowing that they will be taken care of when you are no longer around. There are a few optional benefits that you can consider adding to your family cover to get the most out of your policy.

Children’s insurance

Children are the number one thing that anyone would want to protect. In their day to day interaction with the world anything can happen in a blink of an eye, and you want to ensure that your child is protected. Children’s insurance is an additional cover that you can take out with your life insurance cover that will provide cover your child in the event of accidental death, specific injury or serious illnesses. The age range for children’s insurance generally starts at 2 and ends at 18. The amount in which a child is covered varies from insurer to insurer, but the average amount you can get ranges from a minimum of $10,000 – $250,000. The benefits that come with children’s insurance are:

  • Lump sum payments
  • Cover of additional costs such as medical expenses and school tuition.

Total and permanent disability insurance (TDP)

1 in 5 families will be impacted by a death of a parent, a long-term disability, or injury that results in a parent not being able to work. You can consider taking out TDP insurance as an additional buffer to your life insurance cover to provide for your family when you are no longer able to go to work due to being totally and permanently disabled. When you receive the benefit from your TDP you can use it towards:

  • Medical expenses
  • Structural adjustments to your home due to disability
  • Transport costs to and from a specialist’s facilities
  • Ongoing costs such as bills, payment of debt, and mortgage bills

Accidental death insurance

According to BITRE, 1,226 of Australians were involved in accident road deaths in 2017. Accidental events can happen when you least expect them. No matter the number of safety precautions you have taken on the road, at work, or at home. The truth is anything can happen.

One thing is certain though; if you take out accidental death insurance you can rest assured knowing that your family will be protected financially. It is important that you take out adequate cover that will provide for them. Speaking to a financial advisor or an insurer will help you get a picture of how much cover you will need to take out to know that your family is not underinsured. The lump sum payment will ensure that your family will continue to receive the financial support that they need.

Critical illness insurance

Even at your prime serious illness can strike and you will need to be financially prepared to ensure that you are provided with the best medical care that doesn’t compromise your life and that your family is protected financially. 10% of claims were due to serious illnesses that prevent Australians going to work for an average of 5.6 weeks.

Should you suffer from a stroke, cancer, or a heart attack you will need a policy that will take care of you. Before signing up for critical illness insurance it will be for your own benefit to check if it covers a wide range of illnesses instead of a limited range. This cover assists you and your family in taking care of extra expenses that might arise during your life-threatening illness.

These optional benefits to your family life cover might cost you a little bit, but the benefits will be worth it. It these optional benefits ensure that you have a stronger life insurance policy that will cover you financially through any of life’s curve balls.