What is the maximum amount of Life, Trauma Or Total & Permanent Disability Insurance cover a medical professional can get ?
Life insurers use a process called “Financial Underwriting” to determine the maximum amount of cover they will give to an applicant.
They will consider a range of factors specific to the applicant such as the purpose of the cover and their income and assets and liabilities.
The insurer will work with the applicant’s adviser to understand their financial situation, why cover is required and how the proposed sum insured was calculated.
Every applicant is different. Some will be looking to protect their personal position, while others will be looking for protection for their business. Some will be working, while others may be performing equally important unpaid duties within the home.
For personal cover, some insurers will give a guideline of maximums they will consider based on a multiple of annual income. For example, one insurer’s guideline currently states that for those aged under age 40, they would consider life cover applications of up to 40x income and trauma insurance applications of up to 20x income. These multiples fall by age according to their guidelines so that, for example, those aged between 51-55 it is 15x income and 8x income respectively.
Contact us to find out more and to get personal advice based on your own circumstances, needs and objectives. This is general information only.
Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. See our website for our Financial Services Guide. Always read the Product Disclosure Statement issued by an Insurer before considering insurance.
