Can we ride it out?
How many months could we cover our costs without income?
Protection for the years you are living
Living benefits are designed to pay out because of what happens to your health, not because of death. They help you cover costs and keep your plans on course while you recover.
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A serious illness or injury can arrive without warning. Treatment, time off work and family support all cost money, and savings can drain quickly. Living benefits aim to give you a financial cushion so recovery is the only job you have.
They are different from life insurance and work best when planned alongside it. We help you see which risks are already covered through work or the state, and where gaps remain.
How it fits together
Each part of a plan connects to the others. Select a topic to read more.
Your health and income
- Critical illnessA lump sum on diagnosis of a listed condition.
- Disability incomeA regular payment if illness or injury stops you working.
- Life insuranceProtection for those who depend on you.
- SavingsA buffer that gives you time.
- RetirementKeeping long-term plans intact.
Needs change with your career and family
The risks you face, and how much of your income is at stake, evolve over time.
Early career
Income is your biggest asset. Disability cover and a savings buffer are often the first priorities.
New family
More mouths to feed raises the cost of any interruption to income.
Established career
Higher spending and debts mean a longer gap if work stops; cover levels are worth revisiting.
Self-employed years
No employer plan to fall back on, so personal cover and a reserve matter more.
Approaching retirement
The focus moves toward protecting accumulated savings from unplanned health costs.
Illustration only. Your own needs will differ.
Who may want to consider living benefits?
- Anyone whose household depends on their earnings
- Self-employed people and contractors
- People whose workplace plan is limited or short-term
- Those with family history that raises concern
- Business owners and professionals with high fixed costs
- Anyone who would struggle to cover months without income
Why it matters
Most people insure the home and the car but not the income that pays for them. Illness and disability are more common than many expect, and a gap of even a few months can force the sale of assets or the use of retirement savings. A modest plan, set up early, can be far cheaper than the problem it addresses.
Questions worth asking yourself
- How long could we meet our bills if I could not work?
- What does my workplace plan really pay, and for how long?
- Would a lump sum or a regular payment suit our situation better?
- Which conditions or events does a policy actually cover?
- How does the waiting period line up with my savings?
- Would a claim affect my ability to keep paying premiums?
Go deeper
Critical illness cover
Pays a lump sum when you are diagnosed with a condition listed in the policy and meet its definition.
Disability income cover
Pays a regular amount if illness or injury prevents you from working, after a waiting period and for a defined benefit period.
How definitions matter
Each policy defines what counts as a covered condition or disability. The wording is as important as the price.
Combining with life cover
Some products combine protection types. We compare bundled and separate options for cost and flexibility.
Keeping cover in force
Review premiums, renewal terms and any return-of-premium features so cover is still there when needed.
Critical illness and disability cover compared
| Feature | Critical illness | Disability income |
|---|---|---|
| What triggers a claim | Diagnosis of a listed condition | Inability to work because of illness or injury |
| How it pays | Usually a lump sum | Usually a regular monthly amount |
| Use of funds | Flexible: treatment, debt, time off | Replacing part of your income |
| Waiting period | Often a short survival period | A set period before payments begin |
| Best for | Large one-off costs and breathing space | Ongoing living costs |
Important to know: definitions, limits and exclusions vary by provider. Always read the policy wording.
Three questions behind every plan
What would it cost us?
What are the likely out-of-pocket costs of a serious illness?
What should stay on track?
Which goals must not be derailed by a health event?
Related solutions
Life Insurance
Cover that can help your family keep its footing if your income stops.
Read more →Retirement Planning
Turning a lifetime of saving into an income you can rely on.
Read more →Wealth Building
Saving and investing with clear goals, sensible risk and a long-term view.
Read more →Business Owners
Protecting the business, the owners and the plan for what comes next.
Read more →Tax Strategies
Keeping more of what you earn and grow, within the rules.
Read more →Legacy Planning
Making sure what you have built passes on the way you intend.
Read more →Common questions about living benefits
Are living benefits the same as life insurance?
No. Life insurance pays after death; living benefits respond to illness, injury or disability while you are alive.
Do I need both?
Many people benefit from both, but the right mix depends on dependants, income, savings and existing cover.
Will I be approved?
Approval depends on health and other underwriting factors. Applying earlier usually gives more options.
What if I already have cover at work?
We compare it with your needs. Workplace plans often replace only part of your income and may end if you leave.
What happens to the money I receive?
A lump sum can be used however you choose. Tax treatment depends on the product and your location; ask a tax professional.
Important to know
The information on this page is general and educational. It is not financial, insurance, investment, tax or legal advice, and it does not take your personal circumstances into account. Product availability and eligibility depend on licensing, location and provider rules. Speak with a qualified professional before you act.
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