Life insurance explained: protecting your income, family and future
A career in medicine takes years to build. Buying a home, raising a family and planning for the future, all depend on financial security.
None of us likes to think about the unexpected. But illness, injury or death can affect your ability to work and earn an income. It can also affect the people who depend on you. The right cover can help provide greater confidence about the future.
What does life insurance include?
When people hear "life insurance", they often think only of death cover. This is a benefit paid when someone dies.
In reality, life insurance can include several types of cover. Together, they help protect your income, lifestyle, family and financial future. This matters if injury, illness or death affects your ability to work or meet your financial commitments.
Common types of cover:
- Life cover: lump sum payment if you pass away or are diagnosed with a terminal illness, subject to the policy terms.
- Income protection: a partial replacement income if illness or injury stops you from working for a period.
- Total and permanent disability cover (TPD): a lump sum payment if illness or injury leaves you permanently unable to work, subject to the relevant policy definition.
- Trauma cover: a lump sum payment if you are diagnosed with a specified serious medical condition.
Together, these covers can provide protection at different stages of career and life.
Why protection matters
Protect your income
For many health professionals, your ability to earn an income is your greatest financial asset. It supports everyday expenses, mortgage repayments, family commitments and future goals.
Income protection can give you a financial safety net. It helps if illness or injury stops you from working and earning your regular income.
Protect the people who depend on you
If you have a partner, children or others who rely on your income, life cover can help. It reduces the financial impact if you pass away or are diagnosed with a terminal illness.
Depending on your policy and circumstances, a benefit could help with living expenses, mortgage repayments, education costs, and any other debts.
Support your recovery
A serious illness or permanent disability can bring unexpected expenses and changes to your lifestyle. Trauma or TPD cover may offer financial support. It can help manage expenses, reduce debt or ease pressure while you focus on recovery.
Keep pace with life changes
Your protection needs can change throughout your career. Buying a home, starting a family, moving into private practice or taking on greater financial commitments are all good times to review cover options.
Even if you already have insurance, it is worth checking that the cover meets your current needs.
Why do people delay?
Many people put off reviewing or arranging cover because it does not feel urgent. It is common to think, ‘I’m young and healthy’ or assume cover through super is enough. Others believe the process will be too complicated or time-consuming.
But protection needs to change as your career, income and financial commitments grow. Cover through super can be a valuable starting point, however it may not always give the right level of protection, benefits, or value for your circumstances.
Taking the time to review your cover and compare your options helps you to make informed decisions to protect your income, family and future.
Exploring your options
Protecting your income, family and future does not need to start with a one-size-fits-all decision.
Avant Life Insurance offers two pathways. You can use the Doctors’ Life Insurance Selection Tool (LIST) to compare options and get a free premium estimate under general advice. Or you can speak with Avant’s personal advice team who will consider your circumstances, goals and existing cover.
The right protection today can give you greater financial confidence for whatever tomorrow brings.
More information
To learn more about Avant Life Insurance services and how we can help you with your life insurance needs, visit avant.org.au/lifeinsurance, call us on 1800 128 268 or email us at avantlife@avant.org.au.
Avant Life Insurance is a registered business name of Doctors Financial Services Pty Limited (ACN 610 510 328, AFSL 487758) (‘DFS’). The information provided by DFS is general advice only and has been prepared without taking into account your objectives, financial situation and needs. You should consider these, and relevant Product Disclosure Statement or policy wording (available by contacting DFS on 1800 128 268) having regard to the appropriateness of the advice before deciding to purchase or continue to hold these products.
The information in this publication does not constitute legal, financial, medical or other professional advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. Persons implementing any recommendations contained in this publication must exercise their own independent skill or judgement and seek appropriate professional advice relevant to their own particular circumstances. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Avant and its related entities are not responsible to any person for any loss suffered in connection with the use of this information. Information is only current at the date initially published.