Life Insurance Frequently Asked Questions

About Lifebroker

What does Lifebroker do?

Lifebroker helps you find the right financial protection by comparing Australia’s leading insurance companies quickly and easily.  You can purchase Life, Income Protection, Trauma and Total and Permanent Disability (TPD) Insurance through Lifebroker.

What companies do you work with?

We work with 11 of Australia’s leading life insurance providers; learn more about our life insurance companies here.

How do you compare polices?

By using externally-sourced actuarial data, we can provide you with a comparison of policies and premiums, based on the information you provide, such as age, gender, occupation and smoking status.

Each policy receives a score out of 100 to provide you with an indication of the benefits and range of cover, along with the cost of the premiums.

To make a final decision on your policy options, it’s always important to read the insurer’s product disclosure statements carefully to understand what benefits are included in each policy.

Your policy

Can you tell me how much cover to get?

Lifebroker can only offer you general advice and cannot recommend how much insurance you should apply for based on your personal needs and circumstances.

When considering life insurance, it is important to ensure that you have adequate levels of cover for your needs. Consider your financial commitments and future plans, such as mortgage or rental payments, costs of living, school fees and other debts and expenses to get an understanding of your insurance requirements.

Still not sure how much cover you need? To get an indication of how much cover you will need, try our Cover Calculator.

Am I locked into the policy I choose?

No. The policy that you take up can be cancelled at any time but it is important to remember that you will not be covered by the policy once it is cancelled.

It’s important to remember if you’re thinking of cancelling your cover, you will have to complete another application to get cover again.  If your health or circumstance have changed since you first applied for insurance, you may not be eligible for the same levels of cover.

Applying for cover

What is underwriting?

All of the policies compared by Lifebroker are underwritten upfront. Underwriting refers to the insurer’s assessment of the application based on its underwriting guidelines.  This includes medical underwriting to assess the probability of future claim based on information such as:

  • Your medical history
  • Family medical history
  • Occupational duties
  • Smoking status
  • Participation in hazardous activities and other lifestyle factors

By fully underwriting the policy and disclosing important information upfront, you will know exactly what you are covered for when your policy commences, and not when you’re submitting a claim.

Do I need to have a medical examination to get a policy?

As part of the underwriting process, you will complete an insurance application with a Lifebroker applications specialist. This means that you will be asked a series of questions about your medical history and lifestyle to understand the probability that you may make a claim in the future.

Depending on the information provided in the application process, you may need to have a medical examination or blood tests to provide the insurer with all the information they need to make an informed decision about the terms of your insurance policy.  The insurance company will usually pay for any medical examinations and test that are required.

This process also allows you to know what you are covered for when you policy commences, rather than at the time of claim when you or your family are already experiencing a great deal of stress.

What if I have a pre-existing condition, is there cover available?

Even if you have a pre-existing condition, you may still have cover options available through Lifebroker.

It’s important in the application process to disclose any medical history to help the underwriter fully understand the likelihood that you may need to make a claim in the future. Based on your application, the insurance provider may apply a loading or exclusion (also known as revised terms) to your policy rather than automatically declining you cover due to a pre-existing condition.

Lifebroker has a dedicated revised terms team that will work hard to try and find you a favourable outcome from our insurance partners to give you the peace of mind that comes with being financially protected.

Learn more about specific conditions and life insurance with the following:

Can my partner and I get life insurance as a couple?

Absolutely, often it works out to be more cost effective to get joint policies.  Get a quote for life insurance or Total and Permanent Disability insurance quote for a couple or learn more with the following:

Can I get life insurance for my child?

While you cannot get a stand-alone policy for your child independently, you can include your child on some trauma or life insurance policies as Critical Illness Cover for Children. Some policies include child cover as standard, while others may be an addition cost on your premiums. Different insurers also have different age limits, but commonly you can obtain cover for children up to the age of 20.

Learn more about trauma insurance for children here or speak with a qualified Lifebroker consultant.

Your Premiums

How much do premiums usually cost?

Premiums vary depending on the type of insurance policy, the level of cover any pre-existing conditions or other lifestyle factors.

In certain cases insurance companies will apply a loading or exclusion (also known as revised terms) to a policy. This helps the insurance company provide you with cover when there may be an increased probability that you will make a claim for a particular condition or event.

How can I pay my premiums?

Insurance companies usually offer the choice of four methods of payment:

  • Credit card
  • Direct debit authority from your bank account
  • Cheque or money orders (for annual payments)
  • BPAY (for annual payments)

Are premiums tax deductible?

Income protection premiums are tax deductible.

If a term life policy is not written through a superannuation fund, the premiums are not tax deductible and any proceeds recovered are not considered to be assessable income. If a term life policy is written through a superannuation fund, the premiums are tax deductible to the fund. Taxation of death benefits depends on whether the benefits are paid to a dependent, non-dependent or to the Trustee of the deceased's estate.

To learn more, it is best to speak with a qualified accountant.

What's the Difference Between Stepped and Level Premiums?

There are two ways to structure your insurance premiums, stepped or level premiums. Level premiums are usually higher at the start of your policy but will remain more constant over the life of your policy.  Stepped premiums usually cost less at the start of your policy but will increase with your age and level of cover. At the age of 65 years, level premiums revert to a stepped structure.

Your Coverage

Am I covered while travelling overseas?

Yes, all of our insurance products provide cover 24 hours a day, wherever you are in the world. Find out how you're impacted if you're an Australian expat; intending to travel or reside overseas on a long term basis.

How do I submit a claim?

Lifebroker has a dedicated claims support team to help you at what can be an extremely stressful time.  If you need to submit a claim, you may contact the insurer directly or contact Lifebroker and we can help you prepare your claim application, submit it to the insurer and follow up its progress on your behalf.

To help reduce the stress of making a claim, it’s important to keep your original policy document in a safe place that can be accessed by the person submitting the claim.

If your question hasn’t been answered here, our qualified life insurance consultants are just a phone call away on 13 54 33.

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