Tools & Resources

Insurance Needs Planner

A guided worksheet to help you think through Life, TPD, Trauma and Income Protection cover — general information only.

Important Disclosures

Thrive Protect is a privately owned enterprise operating on the Sunshine Coast in Queensland. Our team provides general information and general advice about personal insurance products. We can assist you to obtain insurance products you select following consideration of the information provided. You remain responsible for deciding whether a product, type of cover or level of cover is suitable for you.

We're registered with and regulated by the Australian Securities and Investment Commission. Details of our registration can be found on the ASIC Connect Professional Register. Please refer to our Financial Service Guide for comprehensive information about our offering.

General Advice Warning

Thrive Protect Pty Ltd is a Corporate Authorised Representative of LifePlan FP Australia (LPFPA) Pty Ltd, AFSL 277681. Thrive Protect is authorised to provide general advice and deal in life risk insurance products.

Any information or advice provided by Thrive Protect is general in nature only. It does not take into account your personal objectives, financial situation or needs.

This worksheet does not recommend whether you should hold insurance, the type of insurance you should select, or the amount of cover that may be appropriate for you. You are responsible for entering and selecting the amounts shown in this worksheet.

Before acting, consider whether the information is appropriate for you and read the relevant Product Disclosure Statement. Where you require a recommendation based on your personal circumstances, you should seek personal financial advice.

Get In Touch

General Enquiries

M3-90 The Wharf Mooloolaba, 123 Parkyn Parade, Qld 4557
https://www.thriveprotect.com.au
hello@thriveprotect.com.au

Factors you may wish to consider when choosing an amount of cover

There are different ways people may estimate an amount of Life, Total and Permanent Disability or Trauma cover. The tables below provide general prompts that you may wish to consider.

The worksheet will total the amounts you enter, but the result is not a recommendation or assessment by Thrive Protect.

This worksheet is an educational tool only. It allows you to record amounts you choose based on your own circumstances. Thrive Protect does not assess whether the resulting amount is appropriate for you.

Life Cover

Event	Amount
Most would choose to eliminate their mortgage.	$
You may choose to include some or all of your investment debt. This may depend on whether the investment would be retained or sold.	$
An amount for funeral cover (average cost varies between $4,000 - $20,000)	$
An amount for children's education (consider whether you will use private or public-school education; do you want to be able to offer support through university?) *	$
You may choose to include an amount to provide income for your family for a period of time. Consider the annual amount and number of years you would like to include. This may depend on factors such as whether other household income would continue, whether debts would be repaid and what other financial resources may be available.	$
Total	$0.00

Where you choose to include future income, you may use a calculator to explore how different time periods and assumed investment returns affect the estimated lump sum required. Investment returns are not guaranteed. Thrive Protect does not select the assumptions for you or recommend that the resulting amount is appropriate for your circumstances.

External calculator: Noel Whittaker calculator. This is an external calculator and is provided for general information only.

You may also wish to consider existing insurance, savings, superannuation and other assets that could be available.

You are responsible for deciding whether any amount should be deducted from your estimate. Thrive Protect cannot advise you whether an asset should be retained, sold or used to meet your family’s financial needs.

Total And Permanent Disability

Event	Amount
Excluding the funeral cover, a TPD event has the same financial impact as death – and then some. Take the amount you've decided on above, minus funeral cost, then consider adding:	$
An amount for medical, treatment or rehabilitation expenses. Costs vary significantly, so enter an amount based on what you would like to allow for.	$
An amount for possible home or vehicle modifications, mobility equipment or other accessibility needs.	$
Tax may apply where a TPD benefit is held through superannuation and subsequently withdrawn. The tax treatment depends on individual circumstances, including the member's age, service period, tax components and how the benefit is paid.	$
Total	$0.00

Trauma cover

Trauma insurance covers events that hopefully don't kill you – but might put you out of action for 6-12 months. This cover isn't designed to be a lottery win, rather, relieve financial pressure so you can focus on being well.

Event	Amount
Consider medical costs. This varies significantly, depending on the type of illness you're suffering from and the treatment you opt for. $50,000 is generally the lowest available sum insured – and policies generally average at $100,000 - $500,000 cover.	$
Do you need to replace income for 12 months, or do you have an income protection policy in place? If there is one, do you want to top up the shortfall (you're usually only covered for about 70% of income)	$
Total	$0.00

General information about how insurers assess income protection benefits

Employee

For an employee, it's relatively simple. You can insure 70% of your taxable income, earned from personal exertion. Passive or investment income is generally not treated as insurable earned income. Some insurers may allow certain taxation deductions or expenses to be added back when assessing eligible income. This will depend on the insurer's financial assessment rules.

For example, where an insurer applies a 70% replacement ratio to $100,000 of eligible annual income, the initial calculation would be $70,000 per year or approximately $5,833 per month.

This is a general example only. It does not include possible superannuation benefits, policy limits, offsets, taxation or insurer-specific rules.

Self-employed (or employee of your own company)

For a self-employed person or an employee of their own company, the assessment may be more complex and will differ between insurers. Financial documents may be required to confirm the maximum benefit an insurer is prepared to offer.

Insurers generally assess income generated through the insured person’s personal exertion after allowing for relevant business expenses. Some expenses may be added back under an insurer’s financial assessment rules.

Things you may be able to add back include:

A percentage of vehicle expenses (varies between occupations and insurers – usually at least 20% of vehicle expenses can be added back, sometimes more)
Depreciation (subject to it not being more than 10% of annual turnover)
Income splitting with a spouse (if for tax purposes only)
Superannuation contributions (over and above SGC – sometimes including SGC)

Passive income and government payments are generally not treated as eligible earned income for income protection purposes. The insurer’s policy terms and financial assessment rules will apply.