Merlin Team
Apr 31 min read
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Protect What Matters Most
A Merlin Risk Wiz. Insurance Guide
The Essentials of Personal Cover
Let’s break it down. There’s no one-size-fits-all when it comes to insurance, so here are the main types to consider:
Life Insurance
Think of this as a gift to your loved ones. If you pass away or are diagnosed with a terminal illness, life insurance pays a lump sum to help cover things like:
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Debts
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Funeral costs
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Living expenses
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Your family’s future lifestyle
It's peace of mind that they’ll be okay—even when you’re not around.
TPD Insurance
If an injury or illness means you’ll never work again, Total & Permanent Disability (TPD) insurance gives you a financial cushion.
Depending on the type of policy, you may be covered if:
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You can’t return to any job you’re suited for
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You can’t go back to your specific job
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You’re unable to care for yourself independently
This lump sum helps you cover medical bills, rehab, and day-to-day expenses—so you can focus on what matters.
Income Protection
If you’re too sick or injured to work, income protection helps replace a portion of your income—usually up to 70% of your salary.
Key things to know:
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Waiting period: How long before payments start (e.g. 30, 60, or 90 days)
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Benefit period: How long you’ll be paid (e.g. 2 years, 5 years, or until age 65)
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Tax: You can usually claim premiums as a tax deduction, but benefits received are taxable income
If you’re self-employed or the main earner, this is a must-have.
Trauma Insurance
Serious illnesses like cancer, stroke, or heart attack don’t just take a physical toll—they often come with huge medical bills and time off work.
Trauma insurance pays you a lump sum right after diagnosis, giving you the breathing room to recover without worrying about money. You can even add child trauma cover to protect your kids.
Business Expenses Insurance
Running your own business? What happens if you’re out of action?
This cover helps keep your business ticking by covering things like:
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Rent
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Utility bills
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Office expenses
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Accountant fees
You may also want to insure business partners or key staff. If they can’t work due to illness or injury, your business won’t be left scrambling.
How Much Does It Cost?
Insurance premiums vary based on:
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Age
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Gender
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Health and medical history
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Occupation
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Smoking status
You can choose how your premiums are structured:
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Stepped premiums start lower and increase with age
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Variable premiums cost more early on but remain more stable over time
Where Should You Hold Your Cover?
You can own most policies either personally or through your super fund. Here’s a quick comparison:
Policy in Personal Name
Premiums
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Paid from your after-tax income
Tax Deductibiliy of Premiums
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Only income protection is tax deductible
Claims Payment Taxable
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Often tax-free, except income protection
Policy in Super
Premiums
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Paid via contributions or from super
Tax Deductibiliy of Premiums
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Deductible to the super fund
Claims Payment Taxable
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May be taxable
What’s the Process Like?
When applying, you’ll fill out a health questionnaire—maybe even a quick check-up. Based on your history, the insurer might:
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Offer standard cover
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Add a premium loading
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Exclude certain conditions (e.g. pre-existing injuries or risky hobbies)
But here’s the good news: many policies are guaranteed renewable, so once you're covered, you’ll stay covered—even if your health changes.
Final Thought
Insurance isn’t about expecting the worst. It’s about being ready for it—just in case.
Your plan should be tailored, flexible, and affordable.
Whether it’s protecting your family, your income, or your business—we’ll work with you to make sure you’re covered, your way.
Next Read: Have you got enough insurance?
More from Merlin Risk Wiz.
Insurance Guides
Essential guides
Protecting what matters most
Have you got enough insurance?
Understanding insurance (coming soon)
In-depth guides for business
In-depth guides
Tools and Calculators
Find out if your BMI qualifies for a potential cost saving on your insurance
Protecting what matters most — calculate your insurance needs
More coming Soon!
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