The Basics of Life Insurance in Australia
Life insurance began in Australia in 1833, when the a company issued a policy to Joseph Tice Gellibrand. Gellibrand died fours years later, and so his policy was also the first claim paid. That company is still in existence today as an Australian insurance provider.
In 1849, a non-profit insurer was established, which later expanded its focus to include banking, managed funds, and other financial and investment services. Their name changed was eventually listed on the stock exchange.
Another major insurance company started as an insurer in 1914. Unlike the first two companies, they began with worker's compensation services. Currently, they offer multiple types of financial protection services, including life, home, and car insurance.
As times have changed, more insurance companies have come into being in Australia. They are now available to provide insurance quotes online and no longer require the insured to take a trip to the office. Types of insurance plans have also changed over the years. There are more options now than in the past, so that customers may choose more appropriate life cover.
Current policies
These companies, as well as many others in Australia, offer several main types of financial assurance packages. Term life insurance is the most basic and oldest form. In exchange for making fixed payments, the policy holder is guaranteed that if they die or are diagnosed with a terminal illness during the term of the policy, their beneficiary will receive a set amount of money. The primary use of this type of policy is to cover funeral and other death related expenses.
Total permanent disability (TPD) insurance instead offers protection in the event of the policy holder suffering a permanent and total disability. This policy differs from the first in that it is not limited to a set term but applies for the rest of the policyholder's life. The primary use of this policy is to offer financial stability for both the policyholder and his or her family and dependents in the event that he or she is no longer able to work.
A similar policy offered by life insurers in Australia is income protection insurance. Typically, this type of policy offers a guarantee of up to 75% of a policyholder's monthly income if he or she is unable to work due to a documented sickness or injury.
