How does Life Insurance work in Australia?
22 February 2023
What is Life Insurance?
Life Insurance, also known as 'Death Cover', ‘Life Cover’ or 'Term Life Insurance', offers a lump-sum payment to your family or other nominated beneficiaries if you are no longer around or become terminally ill. It is designed to help your loved ones meet the financial strains of keeping the household running if you pass away. This might include costs like regular utility payments, debts like a home loan, and covering the cost of education or healthcare.
The different types of Life Insurance available in Australia
When selecting Life Insurance, there are several different options to choose from when designing a level of cover that suits your needs. For example:
- Term Life Insurance is now standard practice in Australia. This type of insurance will cover you for a specified number of years, determined when purchasing the policy. This has now largely replaced ‘whole life’ insurance, which is still available overseas but very unusual on the Australian market.
- Funeral Insurance will provide a payout to assist your loved ones with organising a funeral and settling your affairs once you are gone.
- Life Insurance can be customised to include optional extras, such as illness cover, which would provide your family with financial support if you suffered from a critical illness like a stroke or heart attack.
Many people may choose to re-evaluate their insurance needs when they go through a big life change that might affect their levels of debt or their number of dependents. Examples may include celebrating a milestone birthday, taking on a home loan, or welcoming a new member to the family.
The benefits of Life Insurance
Life Insurance brings several benefits for you and your loved ones. These include:
Increased financial security
If you have dependents who rely on your income to keep up with their usual expenses, then having life insurance in place could protect them against future financial difficulty. Suncorp Life Insurance offers comprehensive cover worth up to $1.5 million, and early payout upon diagnosis with a terminal illness.
Peace of mind
With Life Insurance in place you can continue to live your life safe in the knowledge that your loved ones will be supported if you are no longer around to provide for them. Suncorp Life Insurance allows you to nominate up to 10 beneficiaries.
Suncorp Life Insurance is designed to suit your needs, wherever you are in life. As you progress through life’s milestones, be sure to keep your policy updated so you can continue to benefit from the best level of cover for you.
How much does Life Insurance cost?
To secure Life Insurance, you will need to pay regular premiums. The amount you may need to pay will depend on the level of cover you require, any optional extras you choose, and how often you decide to make payments. With Suncorp, you can pay life insurance premiums on a fortnightly, monthly, or annual basis. If you choose to pay on an annual basis, you can receive 12 months’ worth of cover for the price of 11. For more details, you can review the Product Disclosure Statements.
Deciding on how much cover you need depends on factors individual to you - like how many dependents you have, how much debt you owe and what other income sources benefit your household beyond the money that you bring in.
To calculate how much life insurance is right for you, try the Life Insurance Calculator.
Things to check before buying Life Insurance
Before you buy life cover, it’s important to check the following:
- Your eligibility for a policy. Suncorp Life Insurance is available for Australian or New Zealand permanent residents or citizens residing in Australia. Age limits apply, so check if you are eligible for a policy before making an application.
- Level of cover. Make sure the cover you are signing up for meets your needs. This includes payout amounts and optional extras, like additional cover for critical illness or cancer.
- Cost of cover. Before committing to a new life insurance policy, make sure that you’ve selected the payment method that best suits your circumstances. If your payments lapse you will not be covered.
- Existing level of cover through superannuation. Some superannuation funds include insurance as part of your super. Before you purchase further insurance, check what you are already covered for and make sure the cover you select best suits your circumstances. Often cover through superannuation is narrower in scope.
- Terms and conditions. Always read the terms and conditions of any insurance policy before you purchase it.
If you’re ready to consider life insurance, contact the Suncorp Life team today on 13 11 55 or get a quick quote online.
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Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, are provided 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 Life 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 companies use the Suncorp brand under license.
Redundancy Benefit issued on or before 31st March 2020 was offered by AAI Limited ABN 48 005 297 807, AFSL 230859 (AAI) trading as Suncorp which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 will be 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 Products you must read the relevant Product Disclosure Statement. The Target Market Determination is also available.