Life cover and income protection offer financial security in different ways. Understanding their benefits helps you decide if you need one or both.

1. Life Cover Insurance: Pays a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness. It can cover debts, living costs, and education. Premiums depend on your age, lifestyle, job, and cover amount.
2. Income Protection Insurance: Replaces up to 70% of your income if you can’t work due to illness or injury, helping cover everyday expenses—even for non-work-related conditions.
3. Why Consider Both? Together, these policies provide broader protection—especially during major life changes like marriage or starting a family. Consider your financial responsibilities and how each policy could support your loved ones if times get tough.
4. Anton’s Story: Anton, a 45-year-old engineer, had both covers. After an accident left him unable to work for 18 months, income protection paid 70% of his salary, keeping his family secure.

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Balance in relationships is crucial. But often only the main breadwinner has life insurance, leaving the partner handling unpaid domestic or child-rearing duties uncovered.

1. Value of Unpaid Work: Childcare and housework are vital but often undervalued economically.
2. Gender Gap in Unpaid Work: Primary caregivers, usually women, see a big rise in unpaid work after the first child.
3. Economic Impact: In Australia, unpaid work is valued at $565 billion, or 33.9% of GDP, with women doing most of it.
4. Need for Dual Coverage: Both partners need life insurance for financial security. It covers mortgage payments, home maintenance, debts, and children's education.
5. Benefits of Joint Life Insurance: Joint policies offer simpler applications, potential discounts, and convenience. This results in cheaper premiums and comprehensive cover.

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Life insurance needs change as your life evolves. Here are key milestones for reviewing your cover:

1. Young and Single: Income protection covers bills if you're unable to work due to illness or injury. Buying life insurance early means lower premiums.
2. Getting Married: Ensure financial security for your partner with life insurance and income protection.
3. Having Children: Protect your family with life insurance and income protection for financial support if you can't work.
4. Buying a House: Reassess coverage to ensure your family can pay off the mortgage in case of illness, injury, or death.
5. Starting Over: Update insurance and beneficiaries after major life changes like losing a spouse, divorce, remarrying, or starting a new family.

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Underwriting looks at your health, age, job, and hobbies to assess risk.

1. Application Process: Answer questions honestly. You may need a medical exam or records to avoid future claim issues.
2. Risk Assessment: Underwriters estimate the likelihood of claims to decide if you can be insured and on what terms.
3. Factors Considered: Health, age, and occupation are key. Smokers and those with risky hobbies or jobs may face higher premiums. Accurate information ensures better pricing.
4. High-Risk Assessments: High-risk individuals may face higher premiums, exclusions, or be declined. Check the Product Disclosure Statement for details.
5. Policy Reviews: Life changes like new jobs or quitting smoking can prompt policy reviews. Annual reviews and life events may allow cover adjustments. Always check your Product Disclosure Statement.

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