NewsUnderstanding Life Insurance

The best way to understand life insurance is to realise that there is nothing to be afraid of when discussing it.

By its very nature, life insurance can be scary because it involves accepting one’s mortality and setting affairs in order to protect them from the aftermath of events that nobody likes to talk about. This scares a lot of people off and keeps them from learning what they need to know about life insurance.

Did you know that many policies actually help support you in your recovery when you are stricken by a major illness or life event involving injury? Here are some various types of life insurance products.

Two Basic Classes of Life Insurance: Temporary and Permanent


Temporary life insurance is purchased for a fixed period of time, such as twelve months. When the term is over, you renew the policy or purchase a different one. Insurance policies classified as temporary are seen as providing greater flexibility and are the more popular of the two classes.


Permanent life insurance is a policy which remains active until the holder surrenders the policy or the policy matures. The main benefit of permanent life insurance is that it accumulates with the passing of time, allowing the policyholder to borrow against it and in some cases withdraw money.

Couples Insurance

Couples insurance covers both parties in a marriage or relationship with a discount of 5-10% over two individual policies. Usually, the person who earns the most money is insured for a higher amount than the other partner, but it is often used to defray expenses for duties that would normally be performed by a stay-at-home partner, such as child care.

Family Insurance

Family insurance can be used to ensure the continuing financial security of a family that has lost its breadwinner. If the non-working partner is the primary caregiver, family insurance can be used to cover their contributions.

Group Insurance

Group insurance can allow groups of people to purchase life insurance, but at a discounted rate. Often used by companies who don’t have the resources to support employees during extended absences.

Approved Financial Planners

To determine the best life insurance coverage in Perth for you or your family, call Approved Financial Planners: (08) 6462 0888.