Common Life Insurance Terms and Definitions
05 October 2017
Choosing the right life insurance policy for your needs isn't always straightforward, not just because it can be a big decision but because life insurance policies and their various terms can be overwhelming. That's why we've created this simple breakdown of the various terms you're likely to encounter when you start to compare life insurance options.
The A-Z of Life Insurance terms
Accident:an event which solely and directly causes injury as a result of violent, external and visible means.
Automatic Indexation Benefit: helps keep the value of your insurance cover in line with inflation. Most insurers automatically increase the value of your insurance each year on your policy anniversary by either a CPI % increase or by a specified amount.
Cooling off period: most insurers provide you 30 days from the start of your policy (or policy commencement date) to check that the life insurance cover meets your needs. If you wish, you can cancel your life insurance policy during this cooling off period, and receive a full refund of any money you have paid (provided you haven't made a claim).
Disabled: means as a result of sickness or injury, you are unable to perform each and every duty of your occupation that you were engaged in, and receiving an income from immediately prior to your disability.
Death Cover or Term Life Insurance: also known as life insurance. This covers you in the event of death or in the event of terminal illness.
Primary nominated beneficiary: the person you list first on your Nomination of Beneficiaries form, this is the person you would like to benefit from the policy and receive a payment at claim time.
Premium: the amount you pay for the insurance policy.
Sum insured: the amount of cover you have – or what the insurance company will pay to you if your claim is successful.
Terminal illness: a sickness that you have been diagnosed with, and regardless of any available treatment your life expectancy is less than 12 months.
Organising Life Insurance has never been easier – with Suncorp you can get a Life Insurance online quote. If you're unsure how much cover you need, use our Life Insurance Calculator to help calculate how much cover you may need.
Suncorp Life Protect is issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530, AFSL 229 880 under the Suncorp brand and are distributed by Suncorp Financial Services Pty Ltd ABN 50 010 844 621 AFSL 229885. Any advice in this information is general advice only and has been prepared without taking into account any person's objectives, financial situation or needs. You should consider the Product Disclosure Statement (PDS) for Suncorp Life Protect Insurance before making any decisions about whether to acquire this product.