Accidental Injury Benefit
Some life insurance policies will provide an additional lump sum for specified accidental injuries such as paralysis or broken bones.
Agreed Value Policy
The benefit amount you would receive in the event of claim is agreed to when applying for an income protection policy. During the initial application process you will provide financial evidence to establish this amount. This is particularly useful for people with varying salaries, e.g. self-employed people and you can read more on our agreed value section. (See also:Indemnity Value Policy)
The benefit amount your insurance pays, either as a lump sum, or a regular installment.
The Benefit Period is the maximum length of time you'll receive benefit payments for if your claim is approved.
Broker (Life Insurance Broker)
A person or company who is authorised by the Australian Securities and Investments Commission to act on your behalf when negotiating with a life insurance company to provide you with life insurance products.
A Claim is when you apply for a benefit payment from your insurance company following an event that could make you eligible to receive a benefit, as outlined in your policy. This could be a claim submitted by a beneficiary for a death benefit or a claim you lodge yourself for critical illness, income protection, or total and permanent disability (TPD) insurance.
Cooling Off Period
A short period immediately after you have purchased a policy, during which you can cancel the policy without any penalty or loss of premium (usually 28 days).
Critical illness or trauma insurance provides you with a lump sum if you’re diagnosed with a defined critical illness like cancer or a stroke, as defined in your policy's terms and meet any level of severity of that diagnosed condition set out in the product terms. It may provide financial support to help cover medical costs, rehabilitation, and everyday living expenses.
The amount of money a life insurance policy is set to pay the nominated beneficiaries in the event of the death of the life insured.
Duty to take reasonable care not to make a misrepresentation
When you apply for a life insurance policy, there is a legal duty to take reasonable care not to make a misrepresentation to the insurer before the contract of insurance is entered into. A misrepresentation is a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth. This duty does not only apply to new policies but when extending or making changes to existing insurance, and reinstating insurance.
Your obligation to let your insurer know this information in response to their questions is called your ‘duty to take reasonable care not to make a misrepresentation’. If this duty is not met, this may affect your ability to receive a benefit if you make a claim and could result in a claim being declined.