I have been an Insurance Adviser since November 1997, I specialize in Risk only insurance for Personal, Business and Group insurance risks. The issues that insurance covers can be briefly described under six general headings:
Life cover: - pays a sum assured on immediate death or death within 12 months (called Terminal Illness),
Trauma cover: - pays out a sum assured (can be the full or partial payment) on the life assured suffering one of the defined events under the policy and surviving typically 14 days (some events will pay after a shorter time).
Total and Permanent Disablement (TPD): - pays a lump sum if the life assured is unable to work again in their own/usual/any occupation (selectable).
Total and Temporary Disablement (TTD):- Typically pays a monthly amount, after a selected wait period and for a maximum benefit term (or until you return to work), if the life assured suffers and accident or illness and is unable to work. Normal maximum sum assured under Income covers is up to 75% of income or with mortgage TTD covers pays the monthly mortgage amount (subject to conditions). Some may pay a higher monthly amount on claim due to other selected options.
Private Medical Cover: - Allows the life assured to jump the queue for access to private medical cover normally for 'elective' non-emergency surgical, medical, specialists and tests. Option can be added at extra cost of cover for doctors, prescriptions, optical, dental etc (selected excess may apply).
Premium Waiver: - ensures that the insurance premiums are paid by the insurance company if the life assured is unable to work due to accident or illness.
For business covers there are three main headings. These should be discussed with your legal, business and accounting advisers:
Revenue or Key Person Cover: - ensures that the future income earning ability of a company is protected if a key person dies or is disabled - Use Life, TPD, TTD (and possible Trauma covers).
Shareholders Equity Extraction: - provides a guaranteed exit strategy for a shareholders financial holding in a company should that shareholder die, or suffers a trauma event that means they have to exit the business. This is backed by a Shareholders Buy/Sell Agreement.
Business Debt cover: - insures that any business debt (over personal or business assets) is covered with a specific insurance policy where the payment/Ownership/Tax issues may be different to other covers.
Group cover is split into two main headings:
Group medical cover via a compulsory (can provide better conditions subject to number of members and when employer pays a minimum premium) or a voluntary group.
Group Risk Cover- for death, trauma, TPD, or TTD covers (can provide better conditions subject to number of members and if/when the employer pays a minimum premium)