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The importance of protection

The survival and success of your business is critical - it is probably your main source of income and may play a big part in whether you meet your retirement goals.

To give your business its best chance to survive over the long term, and succeed, you need to get smart about protection. No matter how small or large your business, or how it is structured, each business will face a number of risks. These risks could relate to the economy, competition, or changing consumer behaviour and can be hard to control. However, one type of risk you can have a degree of control over is people risk - that is, the financial impact to your business if a key person dies, becomes disabled or suffers a specific medical condition.

Moreover, protection is not just about guarding the financial health of your business, it's also about protecting the ownership of your business - that is, helping to achieve a smooth transfer of business ownership should one of the business owners suddenly exit due to sickness, injury or death.

Why insurance is an important consideration

We all want to avoid thinking about illness, injury and early death. Here are some facts and figures to remind you of just how risky life can be - and why insurance is an important consideration.

  • One in five families will be affected by the death of a parent, or a serious accident or illness that renders a parent unable to work1
  • Around 55,000 Australians suffer a heart attack each year2
  • 1 in 2 men and 1 in 3 women are expected to be diagnosed with cancer before the age of 853
  • It is estimated that more than 43,700 people died from cancer in 20113
  • Almost 2 million adults aged between 25 - 64 have had a disability4

There are a number of different ways that you can reduce the impact that these risks may have on your business. Discuss them with a BT Adviser.

What insurance cover options are available?

The below table describes some of the different types of insurance policies available within Westpac Protection Plans.


Type of cover How it can help
Lump sum benefits
Term Life Pays a lump sum in the event of the death of an insured person or if the insured person is diagnosed with a terminal illness.
Total and Permanent Disablement (TPD) Pays a lump sum in the event that the insured person is, depending on the TPD definition selected, unlikely to work again, perform household duties again, or suffers a loss of ability due to a permanent disability.
Living Insurance Pays a lump sum in the event the insured person suffers from a specified medical event such as cancer, a heart attack or stroke. This type of insurance is sometimes referred to as trauma or critical illness insurance.
Monthly benefits
Income Protection Pays a monthly benefit to replace a portion of the insured person's monthly earnings if they're unable to work due to sickness or injury.
Business Overheads Pays a monthly benefit if the insured person is unable to work due to sickness or injury, to help keep their business running.
Key Person Income Pays a monthly benefit to the business in the event the insured person (who can be the business owner or an employee) is unable to work due to sickness or injury to help keep the business viable.
Needlestick Benefit Pays a lump sum if the insured person contracts HIV, hepatitis B or hepatitis C while performing the duties of a medical professional.
Children's Benefit Pays a lump sum if the insured child suffers from a specified children's medical event.


Please note: Needlestick Benefit and Children's Benefit Policies may only be available if you hold another Protection Plans Policy. Living Insurance, Key Person Income, Needlestick Benefit and Children's Benefit are not available within superannuation.

Cover under Westpac Protection Plans is subject to limits and exclusions. You should refer to the Westpac Protection Plans Product Disclosure Statement (PDS) for the full terms and conditions which apply to each policy. 


Things you should know

The LIFEWISE/NATSEM Underinsurance Report, February 2010.
Heart Foundation, statistics
Cancer Council Facts and Figures
AIHW 2011. Australia’s welfare 2011. Australia’s welfare no. 10. Cat. no. AUS 142. Canberra: AIHW.  

The Insurer of Westpac Protection Plans is Westpac Life Insurance Services Limited ABN 31 003 149 157 ('the Insurer'). Westpac Protection Plans are issued by the Insurer except for Term Life as Superannuation and Income Protection as Superannuation which are issued by Westpac Securities Administration Limited ABN 77 000 049 472 ('WSAL') as trustee of the Westpac MasterTrust ABN 81 236 903 448, and distributed by Westpac Banking Corporation ABN 33 007 457 141 ('the Bank'). The Insurer and WSAL are wholly owned subsidiaries of the Bank. The Bank does not guarantee payments under the policy.

This information does not take into account your personal circumstances. Like all insurance, some exclusions, limits and conditions apply.  Before making a decision about this insurance, read the Westpac Protection Plans Product Disclosure Statement (PDS) (PDF 543) (PDF 579KB) for the full terms and conditions and to see if a Westpac Protection Plan is right for you.