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Life Insurance Australia

Life insurance in Australia usually refers to a cover for death and terminal illness. This type of cover provides you with a lump sum payment in the event of the insured’s death or on diagnosis of a terminal illness where death is likely to occur within 12 months. If the insured and the owner of the life insurance policy are the same person, then on the death of the life insured, any benefit payable will go to his/her estate.

The maximum benefit payable for each life insured depends on the cover amount you choose during the application process.

The minimum amount that can be applied for is usually around $100,000. The maximum amounts you can apply for are based on your current age and a few more lifestyle factors.

Inflation

Cover amounts will automatically increase each year to stem negative effects of inflation. Each year your life insurance will adjust you premium to reflect this increase. You will be notified of any changes and have the option to decline the increase.

Eligibility

Eligibility depends on the life insurance company, but usually anyone between 16 and 65 inclusive may apply for Life cover. You will be asked questions about your health, lifestyle and family medical history to determine whether or not you are able to receive any cover. Once a policy has been accepted and issued, and provided premiums are paid as due, your life insurance company will renew it until your 99th birthday.

Exclusions

There are circumstances in which you will not be paid a benefit for death or terminal illness. These are the most common cases:

  • Suicide of the Life Insured that occurs within the first 13 months of the commencement of the cover, any increase in cover (but only in respect of the increase) or where life insurance company has agreed to reinstate the policy after it has lapsed.
  • No Life cover benefits will be paid in any circumstances if the insured has not applied for the cover personally or where the application was completed on behalf of another person.
  • A claim may be declined in circumstances of non-disclosure. For information on when we may refuse a claim due to non-disclosure please refer to the life insurance PDS.
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General Advice Disclaimer

NOTE: Information contained on this website is general in nature and may not be relevant to your individual personal and financial circumstances. The material does not represent any recommendation, legal or taxation advice. You should obtain professional advice before doing anything in reliance on this information or opinions. Please refer to the Product Disclosure Statements of individual insurers before deciding to purchase any financial product mentioned on this website.
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