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Life Insurance

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.

If you'd still like more explanation about these or other life insurance terms, you can check the PDS or call us on 13 11 55.

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.

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BANKING
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Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Information Document, and/or Terms and Conditions before applying for any Suncorp Bank product. Target Market Determinations (“TMDs”) are also available. Copies of historical TMDs for credit card products can be obtained by calling 13 11 55.

INSURANCE
Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

GENERAL INSURANCE
General Insurance (including Home Building, Home Contents, Landlord, Strata, Car, CTP, Motorcycle, Caravan, Motorhome, Boat Insurance, Business Insurance and Barristers Insurance) is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance.

SUNCORP HEALTH INSURANCE
Suncorp Health Insurance is issued by nib health funds limited ABN 83 000 124 381 (nib) a registered private health insurer and is marketed by Platform CoVentures Pty Ltd ABN 82 626 829 623 (PC), a Suncorp Group company. PC is an authorised agent of nib and receives commission from nib. Read the policy booklet before buying this insurance.

SUNCORP LIFE INSURANCE
Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, are issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies are not part of the Suncorp Group. TAL Life uses the Suncorp brand under licence from the Suncorp Group. Redundancy Benefit provided on or before 31st March 2020 was issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 are issued by TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.

Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Product you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is also available.

TAL Life is proud to have adopted the Life Insurance Code of Practice (Code). The Code has been developed voluntarily by the Life Insurance industry to promote high standards of service to consumers, provide a benchmark of consistency within the industry, and establish a framework for professional behaviour and responsibilities.

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