In brief
Personal insurance can help replace income or support a family if work or health changes. This is general information. Advice is provided by MGB Financial Services.
General information. Reviewed 16 October 2026. Rules, caps and benefit tests change. Check the Australian Taxation Office, Moneysmart or Services Australia before you rely on a figure.
Who it's for
A couple with children and one main income. A household with a mortgage or other debts that would remain if work stopped. A person whose premiums have risen, or whose policy has not been read for years. People also ask after a change in health, a change in work, or a merger that left them without anyone looking at the cover.
Medical professionals often ask about income protection because their income depends on being able to practise. That topic is carried further on financial planning for doctors. Families thinking about more than one generation may also read estate planning with specialist legal partners. Insurance does not replace a will, and this page is not legal advice.
How we help
What personal insurance can include
Life cover pays a benefit if the insured person dies or, on some policies, is diagnosed with a terminal illness. Total and permanent disability cover pays if a definition of disability is met. Trauma cover pays a lump sum for specified conditions. The definitions decide the claim. They are not interchangeable, and they are not the same from one policy to another.
Income protection pays a monthly benefit if illness or injury stops the insured person from working, after a waiting period, for a benefit period chosen when the policy is arranged. A common description, including on Moneysmart, is a benefit of up to about 70% of income. That is a general description. It is not a statement that any policy will pay that share, or that a claim will succeed.
Cover can sit inside superannuation or outside it. The premium, the tax treatment and the definition can differ. Moving cover can restart a waiting period, change an exclusion, or leave a gap if a new application is not accepted. Those are reasons to read a policy before replacing it. This page does not say that anyone should replace one.
- Life, total and permanent disability, and trauma cover, each on its own definition.
- Income protection, including waiting periods and benefit periods.
- The people who depend on the income, and the debts that would remain.
- Cover already in place, including cover inside super, described before any change is considered.
- Premiums, which can rise, and exclusions, which can refuse a claim.
How an insurance conversation proceeds
The question, without a product
You describe the income, the dependants and the cover you already know about. Vermilion does not compare insurers in that conversation.
Introduction to the practice
If you ask, MGB Financial Services explains the scope. Insurance advice can involve commissions paid by an insurer. Those are disclosed. They are not hidden in a headline on this page.
Needs considered in writing
An insurance needs analysis, where it is done, is part of personal advice. It is not a quote generated by this website, and it names no insurer here.
A decision you can read first
If a change is recommended, it is in writing, with the risks of replacing cover stated, before you act.
Limits
- A claim is paid only if the policy terms are met. Definitions, exclusions and waiting periods decide that.
- Premiums are not fixed. They can rise with age, claims experience or a change in the cover.
- Replacing a policy can restart waiting periods or leave a gap if the new application is refused or altered.
- Cover inside super can lapse or change when the super arrangements change.
- Insurance does not remove the risk of illness, injury or death. It deals with money, and only on its terms.
Questions
FAQs
What is personal insurance?
Personal insurance is life and other risk cover a person holds for themselves and the people who rely on them. On this page that means life cover, total and permanent disability, trauma and income protection, which are the areas named in the Financial Services Guide. It is general information. It is not a quote and it names no insurer.
What is income protection insurance?
Income protection can pay a monthly benefit if illness or injury stops you working. Payments start after a waiting period and last for a chosen benefit period. A common description is a benefit up to about 70% of income. Policies differ, and a claim depends on the wording. Premiums held outside super may be tax deductible. Source: Moneysmart. This is not a recommendation to buy a policy.
How do life, TPD and trauma cover differ?
Life cover responds to death or, on some policies, terminal illness. Total and permanent disability cover responds if a disability definition is met. Trauma cover pays a lump sum for conditions listed in the policy. The definitions are the contract. They are not explained in full on this page, and they should be read in any document MGB Financial Services gives you.
Can personal insurance be held inside superannuation?
Yes, some cover is held inside super and some is held outside it. Premiums, tax and definitions can differ, and cover inside super can end if contributions stop or the fund changes. Whether a particular arrangement fits is personal advice, provided by MGB Financial Services, not a conclusion of this page.
What are the risks of replacing a policy?
A new policy can restart waiting periods, add exclusions, or decline the application. Until new cover is in force on acceptable terms, cancelling the old policy can leave a gap. Premiums on the new policy can also be higher. None of that is a reason this page gives to keep or to replace cover. It is a reason to read the terms first.
Who is family protection for?
Households in which someone else relies on the income or would inherit the debts. A partner, children and other dependants belong in that picture. Family circumstances are considered inside personal insurance. They are not a separate product, and this page is not an estate plan.
Does this page name an insurer or a product?
No. No insurer, platform or product is named. A decision to buy, replace or keep cover needs personal advice from MGB Financial Services, in writing, after your circumstances and the policy terms have been considered.
Who provides insurance advice?
MGB Financial Services Pty Ltd, Authorised Representative 428617 of Charter Financial Planning Limited, AFSL and Australian Credit Licence 234665. Vermilion can introduce you. Vermilion does not give the advice. Commissions, where an insurer pays them, are disclosed in the advice process and described in the Financial Services Guide.
The advice provider
Credentials of the practice
Financial advice is provided by MGB Financial Services Pty Ltd, Authorised Representative No. 428617 of Charter Financial Planning Limited. The practice gives personal advice only through people who are registered to do so. This website does not name an individual adviser.
You can search the ASIC Financial Advisers Register for the practice and for the people authorised to give personal advice. The Financial Services Guide sets out the services, how the practice is paid, and how to complain.
Complaints can be raised with MGB Financial Services, then with Charter Financial Planning using the details in the Financial Services Guide, and then with the Australian Financial Complaints Authority ( afca.org.au, 1800 931 678).
General advice warning
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
