Life Insurance Frequently Asked Questions
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 the best options for 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?
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?
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:
- What You Need to Know About Your Insurance at Tax Time
- Tax Deductibility of Life Insurance
- Tax Free Benefits of Death Cover
- Making the Most of Income Protection
- Keyman Insurance and Tax
- Tax Benefits of Insurance
Can My Partner and I Get Life Insurance As a Couple?
Absolutely - it's always better to have every person in your household covered. It often works out cheaper to get joint policies. Learn more:
- Should Both Partners Have Life Insurance?
- Joint Policies in a Divorce
- Life Insurance Quotes for Couples
- TPD Quotes for Couples
- Mortgage Protection Quotes for Couples
- Funeral Insurance Quotes for Couples
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:
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:
- Monthly Premium Estimates
- Can Level Premiums be Guaranteed?
- How Your Weight Affects Your Premiums
- Your BMI and Your Premium
- Exclusions and Loadings Explained
- The Downfalls of Cheap Premiums
- Income Protection Premium Estimates
- Lower Your Premiums By Quitting Tobacco
- Couples Premium Estimates
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.
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:
- Diabetes and Life Insurance
- Trauma Insurance for Diabetics
- Answers from Experts about Diabetes
- Diabetics Can Get Life Insurance
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 requested by an insurer, but these are usually for more extreme cases. Learn more:
- Can Mental Illness Affect the Cost of Your Life Insurance?
- Mental Health and Insurance Claims
- Statistics about Mental Illness and Insurance Coverage
- Companies Ignore Mental Health Issues at Their Peril
- Beyondblue Considers Legal Action Against Insurers
- Redefining Depression for Insurance
- Suicide and Life Insurance
- Answers from Experts about Mental Illness