Life & TPD
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Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.


Term Life insurance pays a lump sum benefit on the death of the life insured during the term of the insurance


• To repay debts
• To cover capital gains tax liabilities
• To cover dependents from the loss of income provider
• To secure a business

Tax Treatment 
Premiums are generally not tax deductible unless linked in a Superannuation Fund

• Linked in Super
Premium can be tax deductible if the person is normally eligible for a tax deduction for their superannuation contributions.  For example, a self-employed person.  Benefits are not taxed if within a persons Pension RBL.  Lump sum tax applies if benefits are paid to non-dependents.

• Non-super
Generally no tax deduction on premiums.  Benefits are untaxed

Total and Permanent Disability is an added protection benefit often provided in Trauma and Life insurance policies. Again, a lump sum benefit is paid if the insured is disabled as defined in the policy. Generally speaking it means that because of a sickness or injury the insured is unable to work in their own or any occupation for which they are suited by training, education or experience.
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