Life Insurance Education

Important things you need to know

• Do I know what type of cover I need?

  There are a range of different types of life insurance that might be suitable for you, depending on your situation:

  • Funeral Insurance pays a lump sum to help cover the costs of a funeral, or anything that arises, in the unfortunate event of your death.
  • Term Life Insurance provides for a larger amount of cover and is paid out in the event of your death or terminal illness with a life expectancy of less than 12 months.
  • Accident Income Protection pays a monthly benefit if the insured is unable to work due to accidental injury.
  • Accidental Death Cover pays a lump sum in the event of the accidental death. This type of cover provides an alternative for people who might not be eligible for Term Life Insurance.
  • 'Trauma Insurance' is cover that is paid if you are unable to work due to one of number of specified traumas or serious illness, including cancer and heart attack. Please note: our Trauma Insurance is temporarily unavailable.
  • 'Income Protection' insurance pays you a monthly Income Benefit while you are disabled and unable to work due to sickness or injury. Please note: our Income Protection insurance is temporarily unavailable.

  Each of the above insurance products have specific eligibility criteria, limitations and exclusions which are detailed in their respective Product Disclosure Statements (PDS). It's very important you read and understand the PDS before you purchase any insurance.

• Am I sure about the level of cover I need?

  Everybody's situation is different, so what works for one person might not work for another. With that said, there are a few things that you should think about when determining the level of cover you need.

  • Family: Do you have a family that relies on your income? How much of your income would be needed to sustain your family's lifestyle if you were unable to work?
  • Debt: Do you have a Mortgage, or any other debt that would need to be serviced even if you were unable to work, or worse, passed away?
  • Medical bills: If you become injured or ill, as well as not being able to work, you might also incur medical bills. Will you be able to pay your bills whilst out of work?

  These are just a few of things you should consider. We have put together a Life Insurance Calculator to help you better calculate the amount of cover you might need.

• Have I carefully read the Product Disclosure Statement?

  We cannot overstate the importance of reading the Product Disclosure Statement (PDS) before making any insurance decisions.

  The PDS will tell you exactly what it is that you are about to purchase. This will include the criteria you will need to meet to be eligible for a particular insurance product, the amounts that you can be covered for, as well as any circumstances that arise where you will not be covered by the policy.

• Am I clear about everything in the policy?

  You should be aware that there are no industry-wide standards for a life insurance product, so a life insurance product from 1300 Insurance will not necessarily be the same as one from another insurance provider. You should pay specific attention to the exclusions section of the Product Disclosure Statement (PDS), as well as the definitions of cover, to ensure that you know the conditions you need to meet to be eligible to make a claim.

  If you are uncomfortable or uncertain with anything in the PDS, please call us on 1300 Life Insurance (1300 543 346). We have licensed Life Insurance brokers who can advise you on the best options and products for your specific situation.

• Will I be covered for everything I need?

  Before you make any decisions about Life Insurance, you should double-check the Product Disclosure Statement (PDS) and ensure that you understand when you will and won't be covered. For example:

  • If you don't pay your premiums—even if it's because you are disabled and unable to work—your life cover will lapse. Please be aware that more than 60% of Australians will be disabled for at least a month during their working lives, during which time you still need to pay your life cover premium.
  • During the first 24 months from the commencement of the policy or the last reinstatement of the policy, the Funeral benefit (death benefit) is payable only upon death due to an accident.
  • No claim is payable if the death occurs directly or indirectly as a result of a suicide (or attempted suicide) within the first 24 months from the commencement of the policy or the last reinstatement of the policy.

  These are only some of the situations that you would not covered for. To understand exactly what you will be covered for you must download the PDS. If you are still unclear about anything, please call us on 1300 Life Insurance (1300 543 346) before you make any decisions.

• Do I need to speak with a Life Insurance broker?

  1300 Insurance offers you the convenience of purchasing a range of Life Insurance products online, without any medical check-ups or other hassles. This might be perfect for some people, but there can be a variety of reasons you might want to talk to a life insurance broker. If you are unclear about anything you have read or would simply like to discuss your options, then you should contact one of our licensed Life Insurance advisers by calling 1300 Life Insurance (1300 543 346). You can also use our online form to request a life insurance quote tailored specifically to you.