What is Life Insurance?
Life Insurance provides the peace of mind that in the unfortunate event of your premature death, your family or financial dependants will be financially supported to meet their ongoing needs. Life cover will provide a lump sum payment in the event of your premature death or diagnosis of a terminal illness. A terminal illness is one where a specialist physician determines that your life expectancy has been reduced to less than twelve months.
Why take out Life Insurance?
If you have a mortgage, outstanding debts or family who are financially dependent on your income, Life Insurance can ensure that in the event of your death, your family are not left with financial burdens during what is already a very difficult time. Furthermore, cover can enable your family to continue to meet their ongoing financial needs and maintain a comfortable lifestyle.
For those that have Life Insurance, an appropriate time to review your existing cover is whenever there is a significant change to you or your family’s lifestyle and financial position. Such times include when you buy a new home or investment property, when you change jobs, when you get married or when you have children.
Who is life insurance best suited for?
Life insurance is best suited for individuals such as:
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Feature |
Description |
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Age restrictions |
The entry ages for Life Insurance slightly vary between insurers, usually ranging between 15 and 75 years. |
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Policy expiry |
Most policies will expire at age 99. |
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Amount of cover |
The minimum amount of cover you can apply for is $50,000. There is generally no maximum providing the amount is financially justifiable. |
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Ownership structures |
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Who receives the benefit? |
In the event a claim is made, the lump sum benefit will be paid to the policy owner or beneficiary under a binding death nomination. |
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Common built in benefits |
Funeral benefit – Upon receipt of the death certificate, but before the claim is finalised, the insurance company will advance a lump sum payment to assist in covering funeral costs. Terminal illness benefit – If you are diagnosed with having less than 12 months to live, you are eligible to claim your full life insurance benefit in advance. |
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Common additional benefits available at an extra cost |
Indexation benefit – Your sum insured will increase each year at the rate of CPI. Future increases benefit – Allows you to increase your sum insured without further medical underwriting, after certain personal events in your life e.g. marriage, having a child, etc. |
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Making a claim |
In the unfortunate event that a claim is made on your Term Life Insurance policy, you must notify us and we will handle the entire process and assist in making this simple and efficient for you. |
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.