A balanced wealth creation plan should always include provision for any setbacks that might occur. That's why many financial advisers suggest that adequate life insurance should be considered in the first stage of any investment strategy.

Life insurance is one of the best ways of protecting what's most important to you. When planning for your financial future and that of your loved ones, insurance is a simple and effective way of protecting your family from the financial impact of losing the most important asset they have – you, and your ability to earn an income.

What happens if I am temporarily or permanently incapacitated and unable to work?

Your loved ones depend on you - but how would they cope financially if you became totally and permanently disabled?

Could they afford the financial burden of caring for you if you suffered a medical crisis or were permanently incapacitated?

Life insurance provides the peace of mind of knowing that the ones who depend on you would not be burdened with the cost of maintaining living standards and keeping up loan repayments.

A lump sum payment could help replace your income, cover your medical and rehabilitation costs, and generally keep you and your family running during a difficult time.

Can I protect my business too?

Protecting your business is also vitally important when planning your life insurance needs.

If you had to take time off work or could never work again due to illness or injury or if you became severely disabled, a Business Expenses policy provides a monthly payment to cover allowable business expenses up to your insured monthly benefit, so your business can continue to operate.

Am I covered while travelling overseas?

Yes, all Asteron Life Insurance products provide cover 24 hours a day, wherever you are in the world.

How much does insurance cost?

Your life insurance premium will depend on how much cover you choose, what you choose to insure, and a range of factors such as age, gender, smoking status, health and occupation.

How do I pay my premiums?

You have the choice of three methods of payment:

Cheque, money order or BPay (not available as a method if you wish to pay monthly)
Credit card (Visa or Mastercard) over the phone by calling Asteron’s customer service centre on 1800 221 727
Direct debit authority from your bank account or credit card

Do I need to have medical tests before taking out a policy?

You may need to have medical tests before taking out a policy, but this will depend on how much and which cover you choose, and a range of factors such as age and health. Click here for further information of what you need to know when applying for Life Insurance.

Death Cover - non super

How much cover should I have?

There are no set guidelines for calculating how much death cover you need - it depends on your personal circumstances and how you want to provide for your family and business after your death. Contact a financial adviser for more information on how much cover you should have.

Can I change my amount of cover, if my personal circumstances change?

Yes, you can increase or decrease the amount of Life Cover if your circumstances alter. However, you may need to provide further information.
Remember it's always a good idea to regularly review every aspect of your financial plan.

Asteron’s Special Events Increase Benefit allows you to increase your cover to allow for major events such as marriage, having children, buying a home or becoming a carer for the first time, without the hassle of providing further medical evidence.

Are there any tax implications?

The following table highlights the tax impact of the premiums paid and any benefits received;

Premium Impact

Benefit Impact

Premiums are not normally tax deductible.

If the policy is taken out by a business for a revenue purpose or by a superannuation fund, these premiums may be tax deductible.

Payment of the Death Benefit sum insured under Life Cover is normally free of personal income tax, unless the insurance was taken out by a business for a revenue purpose.

Capital Gains Tax (CGT) is not normally payable if the Death Benefit sum insured is paid to the original beneficial owner or a person who acquires the policy for no consideration.

Total and Permanent Disablement

What is Total and Permanent Disablement (TPD) cover?

Asteron TPD policies can provide a lump sum payment if you are totally and permanently disabled by a serious accident or suffer an illness or injury that leaves you permanently unable to work.

TPD is an option under Asteron’s Life Cover product, or as TPD Stand Alone.

How much cover do I need?

The amount of your TPD cover depends on your individual circumstances. In deciding how much cover you need, you should consider the costs of your living expenses, the medical costs associated with being totally and permanently disabled, and the cost of clearing any debts such as your home mortgage. Contact a financial adviser for more information on how much cover you should have or click here for information on how to find a financial adviser.

Can I change my amount of cover, if my personal circumstances change?

Yes, you may increase or decrease your TPD cover if your circumstances alter. However, you may need to provide further information.

Remember it's always a good idea to regularly review every aspect of your financial plan. Asteron Permanent Disability Increase Benefit allows you to increase your cover to allow for major events such as marriage, having children, buying a home or becoming a carer for the first time, without the hassle of providing further medical evidence.

Are there any tax implications?

The following table highlight the tax impact on any premiums paid as well as any benefits received.

TPD is an option under the Life Cover product or as TPD Stand Alone (non-super). Note: TPD within superannuation has different tax implications.

Premium Impact

Benefit Impact

Premiums are not normally tax-deductible.

If the policy is taken out by a business for a revenue purpose, the premiums may be tax deductible.

Payment of the sum insured is normally free of personal income tax. Tax may be payable if the policy was taken out by a business for a revenue purpose.
Capital Gains Tax (CGT) is not normally payable if the sum insured is paid to:

The person who suffers the condition undergoes the procedure; or that person's spouse, child or other relevant relative.

This is general advice and does not take into account your objectives, financial situation or needs. Before acting on this general advice you should consider the Product Disclosure Statement and the appropriateness of the advice having regard to your situation.

If you need to know more, your adviser is the best person to contact. Your adviser is aware of your circumstances and will be able to give you appropriate advice.

> If you do not have an adviser, click here for information on how to find a financial adviser.

Trauma Cover

What is Trauma Cover?

Sometimes even the healthiest people suffer accidents or are diagnosed with illnesses they had no chance of preventing – like cancer. An Asteron Recovery Package or Recovery Stand Alone policy may help you if you suffer a covered trauma condition.

How much cover do I need?

The amount of your Recovery cover depends on your individual circumstances. In deciding how much cover you need, you should consider the costs of your living expenses, and medical and rehabilitation costs associated with a serious illness. You may also want extra funds for a holiday that could help you recuperate. Contact a financial adviser for more information on how much cover you should have.

Can I change my amount of cover, if my personal circumstances change?

Yes, you may increase or decrease the cover of your Recovery Package or Recovery Stand Alone policy if your circumstances alter.

Remember it's always a good idea to regularly review every aspect of your financial plan.

Asteron’s Recovery Increase Benefit allows you to increase your cover to allow for major events such as marriage, having children, buying a home or becoming a carer for the first time, without the hassle of providing further medical evidence.

Are there any tax implications?

The following table highlights the tax impact on any premiums paid as well as any benefits received:

Premium Impact

Benefit Impact

Premiums are NOT normally tax deductible.

If the policy is taken out by a business for a revenue purpose, the premiums may be tax deductible.

Payment of the sum insured is normally free of personal income tax. Tax may be payable if the policy was taken out by a business for a revenue purpose.

Capital gains tax is not normally payable if the sum insured is paid to:
- the person who suffers the condition or undergoes the procedure; or
- that person’s spouse, child or other relevant relative.

If you need to know more, your adviser is the best person to contact. Your adviser is aware of your circumstances and will be able to give you appropriate advice.

If you do not have an adviser, click here for information on how to find a financial adviser.

Income Protection and Business Expenses

What is Income Protection Insurance and why do I need it?

Income protection insurance enables you to meet your financial commitments by providing you with regular payments should you be unable to work due to sickness or injury. Currently you can cover up to 80% of your income until you return to work.

An additional type of protection product, Business Expenses, provides cover for the fixed operating expenses of a business if you are unable to work due to illness or injury. This cover is ideal for the self-employed, for partnerships and for small business owners.

Doesn’t WorkCover provide the protection I need?

Statistically, more than half of serious accidents happen away from work where workers compensation does not apply*. And while 57% of disability claims are for illness**, Workcover† does not cover non-work related illnesses.

*Australian Bureau of Statistics National Health Survey 1995
**Institute of Actuaries - Report to the Disability Committee, May 1995
†WorkCover is being used as a generic term for the Workers Compensation arrangement in each state.

If I am injured or become ill, how soon will my benefits from income protection insurance start?

That will depend on the waiting period that you have selected and the type of benefits you have in your income protection policy.

I have sick leave at work, so how long should my income protection insurance waiting period be?

Ideally, with income protection insurance, your waiting period should coincide with the period of any sick leave entitlements. The longer the waiting period, the less you will pay for your policy.

What proportion of my income can I cover with income protection insurance?

Generally you can insure up to 75% of your gross income. This is after the deduction of any business expenses.

Are there any tax implications?

The following table highlights the tax impact on any premiums paid as well as any benefits received. Note: Income Protection through superannuation has different tax implications.

Premium Impact

Benefit Impact

Premiums are normally fully tax deductible whether you are employed or self-employed.

The premiums for the Needlestick Option under Income Protection are not normally tax deductible.

The premiums for the Extended Waiver of Premium Option under Income Protection are not normally tax deductible.

Any monthly benefits received are normally taxed as income and should be declared in your annual tax return and where applicable, included in a Business or Instalment Activity Statement.

We do not deduct any tax from monthly benefits prior to payment.

Payment of the Needlestick Option under Income Protection is normally free of personal income tax.

How does my occupation affect the price of income protection insurance?

Generally, the greater your chances of suffering an illness or being injured as a result of the duties you perform in your occupation, the more you will pay for your income protection policy.

For example, plumbers carry out duties that expose them to greater risk of having an illness or injury than, say office workers, who are less likely to be exposed to risks that might prevent them from working due to sickness or injury.

If you need to know more, your adviser is the best person to contact. Your adviser is aware of your circumstances and will be able to give you appropriate advice.

If you do not have an adviser, click here for information on how to find a financial adviser.