A: Life insurance pays a lump sum (the “benefit”) if you pass away or are diagnosed with a terminal illness as defined in the policy. Your beneficiaries can use the money for funeral costs, debts, everyday living expenses, or future plans such as Education. Policies can be owned personally or through your superannuation. If held in super, premiums are paid from your super balance, and different rules can apply when a benefit is paid.

A: There’s no one-size-fits-all number, it depends on your lifestyle, debts, income, and family needs. A simple starting point is:
(Debts + final expenses + future income needs + kids’ education costs) – (existing savings, investments, and other cover).
Some people choose enough to clear their mortgage, while others aim to replace income for a set number of years. We can guide you through this calculation so you can feel confident in your decision.

A: Life insurance typically pays out in the event of your death or diagnosis of a terminal illness (depending on the policy). It can cover funeral expenses, debts, and help support your loved ones financially. Always check your PDS for the exact terms.

A: Generally, life insurance premiums paid outside super are not tax-deductible. If your policy is held within super, your super fund may be able to claim a deduction, but this depends on how the policy is structured. We can guide you through the general differences and refer you to a licensed tax or financial adviser if needed.

A: TPD (Total & Permanent Disability) insurance pays a lump sum if you become permanently disabled and are unable to return to work. It can help with medical costs, home modifications, debts, or income replacement. Cover definitions vary between insurers, we’ll help you understand the basics and what to look out for.

A: This depends on your income, debts, family responsibilities and long-term needs. Many people aim to cover major debts and a few years of living costs.

A: Also known as critical illness cover, trauma insurance pays a lump sum if you're diagnosed with a serious medical condition like cancer, stroke, or heart disease. It’s designed to help with treatment, recovery, and time off work.

A: If you rely on your income to cover living costs, income protection can help maintain financial stability if you’re unable to work due to illness or injury. It replaces a portion of your income until you recover or reach the end of your benefit period.

A: You choose a waiting period (how long before payments start) and a benefit period (how long payments last). These choices affect your premiums. Payments are typically monthly and help cover everyday expenses while you recover.

A: A premium is the amount you pay to keep your insurance policy active. It can be paid monthly, quarterly or annually, and varies based on your age, health, cover amount and type of policy.

A: Yes, many insurance policies can be funded through your super fund, which can help with affordability. There are pros and cons to this approach, and we can help you understand the general differences.

A: No, Ocean’s Financial Services provides general advice only. That means we don’t consider your full financial circumstances, but we can help explain your options clearly. If you need personal advice, we can refer you to a licensed adviser.