Deciding what you need to be covered for is important. You can start by asking yourself (and your adviser, of course): Can I do without any of these types of insurance?
Life cover - Pays a lump sum in the event of death or terminal illness – to cover living expenses for your dependents, pay off debts, funeral costs and fund palliative care if terminally ill so that your family remain looked after financially.
Income Protection - Pays a monthly benefit to replace part of your income, if you are temporarily disabled and unable to work – to cover everyday living expenses and maintain your lifestyle, while you focus on getting back to work. If this cover meets your needs, you will need to determine how long you wait for your first payment (this is called the waiting period) and for how long you are paid (generally called the benefit period).
Mortgage Repayment Relief Cover - Can provide a monthly benefit for up to 90 days to help you cover your monthly home loan repayments if you become Involuntarily Unemployed for more than 60 consecutive days. This cover can be added as a rider benefit in conjunction with your Life cover or TPD cover.
Total and Permanent Disability (TPD) cover - Pays a lump sum should you become permanently disabled and unable to work – to cover out-of-pocket and ongoing medical expenses, home modifications and to take care of dependents if needed.
Trauma cover - Pays a lump sum on the occurrence of certain types of serious illness or injuries (e.g. a heart attack or certain cancers) – to cover an extended break for you (and potentially your spouse) from work as you recover, as well as out-of-pocket medical expenses. This way, you and your loved ones can focus on recovery, not bills.

Insurance premiums will generally increase over time – simply because health risks increase with age. That’s why most insurers offer two common ways of paying for, and managing, the costs of your cover over time:
Stepped premiums: when the cost of your cover is recalculated each year based on your age at your policy anniversary. Generally, this means your premium will increase each year as you get older.
Level premiums: when your premium is ‘averaged out’ over a number of years to help prevent large increases over time. This means your cover will generally be more expensive than stepped premiums when you are younger but will be lower in later years.

Note that regardless of which premium option you select, premiums are generally not guaranteed, and increases can occur.

We don’t know what the future will bring. That’s why it helps to plan ahead. You should begin the insurance relationship with an expectation that your cover needs to be continually adapted to suit your needs. The rule of thumb is that your need for financial protection usually decreases over time. For example, if you pay off your mortgage, reduce your debts, or no longer have dependents to look after financially, you may want to review your cover. You should keep your policy as long as you require financial protection for your needs. If you no longer have debt or have enough financial resources to maintain your livelihood should something happen to you, then you may no longer need as much cover. Lower cover usually means lower premiums, so it’s definitely worth reviewing your policy every 12-18 months.