Life Insurance Frequently Asked Questions

Your Policy

Can You Tell Me How Much Cover I Should Get?

The nature of our service is not to provide you with full advice as to the type and amount of cover you should establish. Our advice is limited to providing insurance options based on the cover amounts and types that you ask for. If you are seeking advice as to your level of covers required, our service may not suit you. Please see the Our Service page for full information on the basis of our advice.

What Companies Do You Deal With?

See our life insurance companies page for a full list of insurance companies we deal with. Learn more about insurance and insurance brokers.

Am I Locked In to the Policy I Choose?

No. The policy that you establish can be cancelled at any time without any penalties.

Can the Policy be Cancelled Without My Permission?

Only you can cancel your life insurance policy. The life insurance company cannot cancel the policy due to a change in your health.

How Can You Compare Policies?

We aim to provide clients with as much choice as possible and show the premiums of various companies for various levels of cover. With term life insurance it is purely cost based, as all companies will pay when you die. Trauma insurance and income protection policies may vary slightly between companies, but these variations will only be very slight. We can provide specific comparisons if you wish. When choosing policies, you can also use insurers' product disclosure statements to see what extra benefits are included or excluded.

Does the Policy Have a Cash Value?

The majority of quotes we provide are for term life cover; this is where the policy has no cash value. Whole of Life policies do have a cash value but the premiums are far higher than for term life insurance.

Do I Need to Have a Medical Examination to Get a Policy?

You may need to have a medical examination or blood tests before taking out a policy, but this will depend on how much and which cover you choose, and a range of factors such as age, smoking status, and health. The life company will pay for any medical requirements. Learn more:

Are There Any Tax Implications?

Income protection premiums are fully 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.

As everyone's circumstances are different, we recommend you seek taxation advice from an independent tax adviser. Learn more:

Can My Partner and I Get Life Insurance As a Couple?

Absolutely! Often it works out to be more costto get joint policies. Learn more:

Can I Get Life Insurance for My Child?

While you can't get a stand-alone policy for your child alone, you can include your child in your own trauma or life insurance policy. Some policies include this one child as standard, while others charge extra on your premiums. Different insurers also have different age limits, but you can get coverage from children up to the age of 20. The best way to find out which insurer is best value for your family is to talk to a Lifebroker agent. Learn more:

Premiums

How Much Do Premiums Usually Cost?

Premiums vary depending on the type of insurance you get and your own lifestyle, but you can get an idea of what to expect on the following pages:

How Do I Pay My Premiums?

Most companies offer the choice of 3 methods of payment:

  • Cheque or money orders
  • Credit card
  • Direct debit authority from your bank account

What's the Difference Between Stepped and Level Premiums?

Stepped premiums increase each year as you get older; the amount they increase each year will depend on age.

  • Age 20-30: little if any increase each year
  • Age 30-40: average 6% increase each year
  • Age 40-50: average 8% increase each year
  • Age 50-60: average 11% increase each year
  • Above age 60: average 15% increase each year

Please note that this is a guide only in regard to annual increase and actual increases can vary depending upon a range of factors.

This means that as you get older the insurance premiums can get quite high, but there is one way of avoiding this, level premiums. Level premiums are where the premium will remain constant up to age 65 so long as the cover remains constant. Level premiums may be higher now, but over the long term they are significantly cheaper. Where appropriate we will always provide quotes on stepped and level premiums.

Your Coverage

Am I Covered Whilst 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 or intending to travel or reside overseas on a long term basis.

Can I Get Insurance if I'm Diabetic?

Yes. We have provided plenty of diabetics with insurance in the past. Learn more:

Can I Get Insurance if I've Been Treated for Depression or Mental Illness?

Most of the time, the answer is yes. Sometimes, a loading or exclusion will be applied to the policy by an insurer, which is determined through the underwriting process. Learn more:

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