❤️
Life Cover
Also known as death or term life cover. It generally pays a lump sum when the insured person dies and may include terminal illness cover, subject to the policy.
❤️ LIFE INSURANCE — COMING SOONWe're working on bringing Life Insurance options to Policy Direct. This page currently provides general information about common types of personal insurance cover.
COMING SOONLIFE INSURANCE • AUSTRALIA
Life Insurance
Life Insurance
with Policy Direct
Understand the different types of insurance designed to provide financial support when death, permanent disability, serious illness or an inability to work affects you or your family.
✓ Life Cover✓ TPD✓ Trauma✓ Income Protection
Life Insurance options are coming soon.
Policy Direct is currently preparing this section. For now, use this page as a general guide and check whether you already hold insurance through your superannuation fund.
Policy Direct is currently preparing this section. For now, use this page as a general guide and check whether you already hold insurance through your superannuation fund.
👨👩👧👦 🛡️
Protect What Matters to YouTYPES OF COVER
Understanding Life Insurance Options
“Life insurance” can refer to several different products. Each responds to a different type of financial risk.
♿
TPD Insurance
Total and Permanent Disability insurance generally pays a lump sum if illness or injury leaves you totally and permanently disabled under the policy definition.
🩺
Trauma Insurance
Also called critical illness or recovery insurance. It generally pays a lump sum for specified serious illnesses or injuries that meet the policy definition.
💼
Income Protection
Designed to replace part of your income for a period if illness or injury prevents you from working, subject to the policy's disability definition and conditions.
CHECK YOUR SUPER
You May Already Have Insurance Through Superannuation
Many superannuation funds offer life cover, TPD insurance and income protection to members. Before arranging additional cover, check your super account, member statement and policy terms so you understand what insurance you already hold and what it costs.
Insurance premiums paid from super reduce your super balance over time. Cover through super can also have different definitions, eligibility requirements, tax treatment and access rules compared with insurance held outside super.
Important: Do not assume default insurance through super is enough for your circumstances. Consider the amount of cover, definitions, exclusions and whether the cover continues if your employment or super account changes.
HOW MUCH COVER?
Think About the Financial Gap
The appropriate amount depends on your circumstances. Consider the financial commitments that would remain if you died, became permanently disabled or could not work.
🏠
Mortgage & Debts
Consider home loans, personal debts, credit cards and other financial commitments.
👨👩👧👦
Family Living Costs
Consider ongoing household expenses and the income your dependants may need.
🎓
Future Expenses
Education and other expected family costs may form part of your planning.
💰
Existing Resources
Consider savings, investments, superannuation and insurance you already hold.
TPD DEFINITIONS
“Own Occupation” and “Any Occupation” Can Be Different
The definition used by a TPD policy is important because it affects the circumstances in which a benefit may be payable.
👷 Own Occupation
Generally considers whether you are permanently unable to work again in the occupation you were working in before the disability, subject to the exact policy definition.
- Definition can be narrower to your occupation
- Usually available outside super
- Can cost more than broader occupation tests
💼 Any Occupation
Generally considers whether you can ever work again in an occupation suited to your education, training or experience, according to the policy definition.
- Higher threshold may apply
- Common in superannuation cover
- Always check the precise definition
INCOME PROTECTION
Waiting Period and Benefit Period Matter
Income protection policies can differ significantly. Two important features are how long you wait before payments can start and how long benefits can continue.
⏳ Waiting Period
The waiting period is the period you must satisfy before income protection payments can begin. Available waiting periods vary by policy.
- Consider available sick and annual leave
- Consider emergency savings
- Check exactly when benefits become payable
📅 Benefit Period
The benefit period is the maximum period payments may continue while you remain eligible under the policy. Options can vary between insurers and products.
- Some policies offer fixed-year periods
- Some may provide cover to a specified age
- Longer periods can affect premiums
BEFORE BUYING
Important Things to Check
Price alone does not tell you whether a life insurance policy is appropriate. Definitions and policy conditions can materially affect the cover.
📖
Policy Definitions
Understand exactly what must happen for a benefit to become payable.
🚫
Exclusions
Check exclusions, limitations and any special terms applied to your cover.
📈
Premium Changes
Understand how premiums may change with age and over the life of the policy.
👥
Beneficiaries
For life cover, understand how beneficiaries are nominated and how benefits may be paid.
Life Insurance FAQs
These answers are general information only. Policy definitions, eligibility, benefits, exclusions and premiums vary between products and insurers.
1. What is life insurance?
Life insurance can refer to several types of personal insurance. Life cover generally pays a lump sum when you die, while TPD, trauma and income protection respond to different disability, illness or income-loss events.
2. What is life cover?
Life cover, also called death cover or term life insurance, generally pays a lump sum when the insured person dies. Some policies also provide a benefit for terminal illness, subject to the policy terms.
3. What is TPD insurance?
Total and Permanent Disability insurance generally pays a lump sum if illness or injury leaves you totally and permanently disabled according to the policy definition.
4. What is trauma insurance?
Trauma insurance, also known as critical illness or recovery insurance, generally pays a lump sum if you suffer a specified serious illness or injury that meets the policy definition.
5. What is income protection insurance?
Income protection is designed to replace part of your income if illness or injury prevents you from working. The amount and duration of benefits depend on the policy.
6. Can I have life insurance through my super?
Yes. Many super funds offer life cover, TPD and income protection. Check your super account or contact your fund to understand your existing cover and premiums.
7. Is trauma insurance normally available through super?
New trauma insurance policies are generally not offered through super funds. Some members may still hold older trauma cover. Check directly with your super fund if you are unsure.
8. How much life cover might I need?
This depends on your circumstances. You may consider debts, mortgage repayments, funeral costs, family living expenses, future costs and the savings, investments, super and insurance already available to your family.
9. What is a beneficiary?
A beneficiary is a person nominated to receive a life insurance benefit. The rules can differ depending on whether the cover is held personally or through superannuation.
10. What is an income protection waiting period?
It is the period you generally need to wait before eligible income protection payments can begin. The available waiting periods and conditions vary by policy.
11. What is an income protection benefit period?
It is the maximum period for which eligible income protection benefits may be paid while you continue to satisfy the policy conditions.
12. What affects life insurance premiums?
Depending on the product and underwriting, factors may include your age, health, occupation, smoking status, lifestyle, amount of cover and policy structure.
13. Do I need to disclose my medical history?
You must answer the insurer's application questions accurately and honestly. The insurer may ask about your medical history, occupation, lifestyle and other risk factors when assessing an application.
14. Can TPD or trauma cover reduce my life cover?
It can under some linked or packaged policies. A TPD or trauma payment may reduce the remaining life cover. Check the Product Disclosure Statement and policy schedule to understand how benefits interact.
15. Can I get Life Insurance through Policy Direct now?
Not yet. Policy Direct's Life Insurance pathway is coming soon. This page currently provides general educational information only.
COMING SOON
Life Insurance on Policy Direct
We're working on bringing Life Insurance options to Policy Direct. Until then, use this guide to understand the main types of cover and check any insurance you already hold through superannuation.