When you start as a young couple, the last thing you want to worry about is anything that could leave you or your partner in financial distress. Couples Insurance protects you from life-altering changes that could have a serious financial impact. Personal life insurance is the first stepping stone to a secure financial future. If you think it’s too early for Couple’s Life Insurance, consider the cost-effectiveness of a joint policy and the more extensive and cheaper options available to you.
Life Insurance for couples is useful when both partners are working as the insurance product will assist in replacing a partner’s income if one of them becomes injured, is diagnosed with a terminal illness, or passes away. In addition, we can advise you on your options for Life Insurance as a couple and other insurance products like income protection.
It would be wise to purchase life insurance as soon as possible, especially if you are a couple starting their financial journey. Life insurance is the safety net all couples need in the worst-case event, as life’s many expenses, such as weddings and buying homes, often lead to couples being unprepared for worst-case scenarios.
If one partner in the couple is currently unemployed, it is still recommended that the couple take out life insurance, especially if they have children. If they make a claim, they can use the lump sum that the insurance company pays out for costs regarding the children, such as the services of a babysitter or childcare.
At WealthSmart, we can recommend a range of insurance products in Australia suited to cover every area of your life. Our recommendations, which are suited for couples and single people, will offer you peace of mind if you or your loved one experiences an injury, illness, or death. We can find a range of insurance options, show you different quotes, answer any queries or questions, and guide you through the product disclosure statement before finalising any purchases. Life insurance providers with Australian credit licenses supply these products to ensure your purchase is valid.
There are three main factors couples should consider when comparing life insurance policies. These are income, partner responsibility, and risk of injury or major illness.
If only one partner within the couple earns a salary, that person should insure themselves for a more significant amount. If both people in the partnership earn a similar salary, the couple should consider a joint life insurance policy with comparable coverage for each partner. This consideration will ensure that they will cover the family’s living expenses if one partner passes away.
Although, in most cases, both partners support their family, one partner may play a more vital role. For example, if one member of the partnership is a stay-at-home parent who puts most of their time into keeping the house and raising the children, they should increase their coverage. This decision is because the family might have additional childcare, housekeeping, and gardening costs if they die.
When purchasing a couple’s life insurance, the parties need to consider income replacement and other activities, such as child-rearing, which may be costly. Additionally, purchasing direct life insurance can be the difference between supporting your family’s comfort or having them face financial difficulties once one partner dies.
Couples who have a family history of pre-existing medical conditions or serious illnesses need a life insurance policy. Couples should also consider purchasing TPD insurance to sustain the beneficiaries during waiting periods.
At WealthSmart, we offer a range of services and expertise from our advisors, which you can use to choose the life insurance products that suit you. We urge you to contact us with any queries or questions that one of our advisors will be able to answer. Get in touch with us by calling 1800 765 100.
Family life insurance functions to cover the daily living costs of your beneficiaries if you were to pass away. This insurance product can help cover the costs of food, clothing, mortgage, rent, and education. Purchasing this life insurance product is recommended if you are the primary source of income in the household. The lump sum paid out will be able to protect your family from financial difficulties if you are not able to work or if you pass away.
Even if you are not the partner with the primary income source, purchasing family life insurance may prove beneficial as it may cover costs for which they were responsible. Examples of this may be hiring a family chef, chauffeur, or caregiver. But besides this, purchasing family life insurance can also assist stay-at-home parents in securing their family’s future.
To purchase family life insurance that suits you and your family, you should do your homework and calculations to determine which specific family life insurance product can cover your family’s specific financial goals. Examples of these goals may be paying off the mortgage and covering school fees.
TERMS REGARDING FAMILY LIFE INSURANCE
- Waiting period: This is the amount of time you need to wait before being able to claim after purchasing a family life insurance policy. The waiting period time usually ranges from 30 to 180 days. Even if you, or a loved one, is unfortunate enough to experience an unforeseen incident before the waiting period has concluded, the insurance provider will reject any claims made.
- Accidental death cover: This insurance product ensures you only if you suffer from accidental death.
- Beneficiary: This is someone who is the recipient of a benefit or payout in the event of the policyholder’s death. The beneficiary is usually your spouse, child, or close loved one.
- Claim: This is the process policyholders have to follow to request the policy’s payout.
- Exclusion: This is when specific issues or circumstances are not included in the policy. Examples of this may be if you suffer from a particular serious ailment, the insurance company may deny your policy request.
- Expiry: The expiry is the date on which the cover ends. The insurer will include this end date in the insurance products documentation.
- Lapse: This is once the cover ends due to the policyholder not paying the required premiums for a specific amount of time.
- Non-disclosure: The insurance product may become void if the policyholder has not supplied the correct or complete information.
DETERMINING HOW MUCH FAMILY LIFE INSURANCE YOU NEED
The amount of family life insurance you need depends on your lifestyle and expenses. No family’s needs are the same as another family’s needs, which means most family life insurance differ. When determining how much family life insurance you need, you would need to consider:
- Living expenses: Calculate how much your family spends on food, clothing, rent, bills, and education. This evaluation will ensure you obtain enough knowledge of how much cover your family will need.
- Outstanding loans and debts: If you have loans or debt, your family life insurance would need to be able to cover the costs if you or your partner are unable to.
- Financial safety: You would need to consider your savings, assets, and existing insurance policies to determine how much family life insurance you need.
- Cover period: You must consider your household’s income, family size, and savings to determine how long your family would need to be covered.
HOW MUCH DOES FAMILY LIFE INSURANCE COST?
We can offer you a family life insurance quote based on your family’s needs and preferences. A range of factors affects and determines the cost of family life insurance, such as the claim amount, the age of the policyholder/policyholders, health status, and smoking habits.
Higher payouts mean you need to pay higher insurance premiums. The insurance premiums also typically increase with age and if the policyholder is a smoker. Insurance providers will likely require specific information from you before offering a quote, such as:
- The desired payout.
- The type of cover.
- The features of the cover which you want.
- Premium structure. Your premium will depend on the premium structure, which can be stepped, level, or hybrid payments.
- Your health and age.
FAMILIARISE YOURSELF WITH THE FINE PRINT
You should make a point of reading the fine print no matter what contract or agreement you sign. For example, you will be rightfully entitled to the claim after paying premiums for a specific amount of time. But, if you are not transparent with the insurance company when you purchase a particular insurance product, your family may be denied the payout.
You will need to be transparent regarding:
- Your medical history
- Your family’s medical history
- Your occupation
- Your income
- Your hobbies (to determine if you engage in any dangerous hobbies)
After the insurance company processes and accepts a claim, they can deliver the family life insurance to the elected beneficiaries through the agreed lump sum. Your family can use this payout to cover your debts or cope with day-to-day expenses. If you prefer regular payments, insurance products, such as income protection insurance, could offer this.
THE PROS AND CONS OF FAMILY LIFE INSURANCE
- Your family will be protected from financial distress if you suffer from an injury or illness or pass away.
- The life insurance benefits can be tax-free depending on the policy you purchased.
- You can use t
- he payout from the policy to cover your funeral costs.
- If you purchase family life insurance at a younger age, your premiums may be lower.
- You will need to make regular premium payments.
- The claim process is not immediate as it takes a few days.
- Depending on the situation, the policy may become void.
WHAT IS THE DIFFERENCE BETWEEN STANDALONE AND BUNDLED FAMILY LIFE INSURANCE POLICIES?
A standalone policy is when an individual purchases separate policies. All the different policies will cover other areas, and you will have to submit the claims individually. Standalone policies offer more flexibility as you can purchase different covers from different insurance companies.
The pros of a standalone policy are you have more options from different insurance companies, and the policies you purchase are easier to customise. The cons of a standalone policy are that you will need to pay multiple premiums, and buying a range of different policies may end up being more expensive.
Bundled insurance is defined as the bundling of a group of several insurance products. If you choose this type of insurance, you will pay a single premium, and if you only claim a part of the policy, the insurance company will reduce the benefits.
The pros of bundled insurance are typically lower premiums, the coverage is more considerable, and there is only one required premium. The cons of bundled insurance are that there is only one sum insured, bundled insurance is not typically customisable, and you need to purchase the bundled insurance from one insurance provider.
THE DIFFERENT TYPES OF PREMIUMS OPTIONS
When purchasing family life insurance, you can select a premium payment process that suits you and your preferences. The different types of premium payments are stepped premiums, level premiums, and hybrid premiums.
Stepped premiums have been proven to be cheaper initially, but the premium’s sum does increase as time goes by. Due to this, stepped premiums may prove to be more expensive than other premium payment options in the long run.
Initially, level premiums may be more expensive, but the premium sum does not increase over time. Therefore, this situation may prove to be cheaper than other premium payment options. This premium payment option is suited for people who intend on purchasing an insurance product for the long term.
A hybrid premium is a combination of stepped and level premiums. The initial premium sum is between level and stepped, which means they are more expensive than stepped but cheaper than the initial level option. Hybrid premiums increase like stepped premiums but stabilise after some time. This stabilisation feature may be an attractive premium payment option, but note that not every insurance company offers hybrid premiums.
THE TAX BENEFITS ON FAMILY LIFE INSURANCE
A common fact is that most life insurance policies are not tax-deductible, but family life insurance may become tax-deductible. For example, the Australian Tax Office (ATO) states that if a policy has benefits for physical injury, its premiums cannot be tax-deductible. But, if the policy is inside a super, the policy may become tax-deductible.
Family life insurance purchased through superannuation means that your premiums come from the superannuation fund. The superannuation fund may have pre-tax contributions. ATO has stated that personal life insurance policies cannot be tax-deductible, but they can become tax-deductible if handled through superannuation. The fund will pay towards a third-party insurance company on the policyholder’s behalf and may be able to claim tax payments.
HOW TO FILE FOR A CLAIM
If you have purchased family life insurance through an insurance provider, your beneficiaries can contact us, and we will be able to guide them through the claims process. If you have purchased family life insurance through a super fund, your beneficiaries will have to contact the fund to be informed of the claims process. Some people may have family life insurance through their employer, which means their beneficiaries would need to contact the company to be informed of the claims process.
You can make a family life insurance claim if the policyholder passes away or if they suffer an injury or terminal illness. Depending on the situation, you may need to offer the following information:
- Medical reports and results from a licensed doctor
- Tax returns and financial statements
- The death certificate or the necessary medical certificate
After the claim has been processed and accepted, it may take two to three weeks to be paid out. Some cases may take even longer, but this is dependent on the situation. Rare cases have had claim process times being up to six months.
GETTING THE BEST FAMILY LIFE INSURANCE
The best insurance policy is usually the one that has the most cover with the highest payout. To purchase the best family life insurance policy, consider these features:
- Terminal illness benefits: This offers you benefits if you’re diagnosed with a terminal illness and have fewer than 24 months to live.
- Pause payments: You can temporarily pause premium payments if you face unforeseen financial issues.
- Premium freeze: This feature ensures that your premiums will not increase with age. We advise that you inform yourself about the fact that the lump sum paid to your beneficiaries might decrease.
- Funeral advancement: This feature requires an initial payment so that your family can arrange for your funeral. The insurance company will then focus on paying out the outstanding benefits to the beneficiary later.
- Inflation indexation: The feature results in the company adjusting your policy benefits according to inflation.
- Joint protection: This action allows you to group your policy with your spouse and usually results in discounts on your premiums.
- Grief support: Your insurance provider will provide grief counselling and/or PTSD treatment to your beneficiaries.
- Financial planning: Your insurance provider will offer guidance to assist beneficiaries in planning their finances carefully.
- Long-distance accommodation: This feature covers the accommodation costs of your beneficiaries if you are diagnosed with a terminal illness and the beneficiary has to travel to meet you.
- Repatriation: If the policyholder dies outside Australia, the insurance provider will pay some extra amount to cover additional costs.
At WealthSmart, we offer a range of services and expertise from our advisors, which you can use to choose the family life insurance products that suit you. We urge you to contact us with any queries or questions that one of our advisors will be able to answer. Get in touch with us by calling 1800 765 100.
THE GOVERNANCE OF FAMILY LIFE INSURANCE
In Australia, the life insurance sector falls under the Life Insurance Act of 1995. The Life Insurance Act protects the interests of insured persons or groups of persons. But as it protects policyholders, it also protects the insurance companies. The Act functions to protect insurance providers from fraudulent claims.
The main goals of the Life Insurance Act are:
- To ensure that insurance providers maintain open communication channels for their potential customers to learn about the specific policy before buying it.
- That policyholders gain their rightful benefits once a claim has been processed and approved.
- To ensure that insurance companies can intervene when they feel that the interests of their policyholders are under threat due to poor management. This intervention occurs under the supervision of ASIC and APRA.
- To ensure that registered insurance providers are the only ones able to sell family life insurance policies.
COMMON EXCLUSIONS OF FAMILY LIFE INSURANCE
As all insurance policies do, a family insurance policy will have a range of inclusions and exclusions. Some of the most common exclusions are:
- Criminal activity. The insurer will not accept the claim should the policyholder dies due to their involvement in illegal activities or if their death results from them breaking the law.
- Self-harm and/or suicide. This event is a widespread exclusion and is prevalent in most policies. It is also common for a policy to be voided if the policyholder attempts suicide within a specific period. This period is usually the first 13 months of the policy being active.
- Death within a specific time frame. Some insurance policies may include premium reimbursements instead of the benefit if the policyholder’s death occurs soon after purchasing the insurance product. If this is an exclusion in an insurance policy you are interested in, the financial advisor or insurer should disclose this information before you commit to a purchase.
- Reckless behaviour. Similarly to criminal activity, the claim would be denied if the policyholder becomes injured or dies due to reckless, negligent, or irresponsible behaviour.
Please be aware that many insurance providers have exclusions for those who have pre-existing conditions, occupational hazards, or who engage in high-risk activities. Before purchasing an insurance product, you need to read the policy disclosure agreement to understand your cover fully.
Additionally, if you have a condition or circumstance that might be the exclusion and attempt to hide this fact from your insurer, this may result in the claim being voided. You will also lose all your premium payments. Common conditions which may be an exclusion are high cholesterol, depression, heart ailments, and asthma.
WHO RECEIVES THE CLAIM’S BENEFITS?
The claim payment will be transferred to the policyholder or their chosen beneficiary, depending on the circumstances. For example, if the policyholder suffers an injury or terminal illness, they will receive the policy’s benefits. If the policyholder passes away, their designated beneficiary will receive the policy’s benefits. The beneficiary is usually a spouse, child, or close friend.
The insurer requires the policyholder to nominate a beneficiary to receive the benefits during the purchasing process. If you have someone or people who are financially dependent on you, it is advisable to select them. It is also possible to nominate multiple beneficiaries. If you decide to change your chosen beneficiary for whichever specific reason, you will be able to do so. You need to contact your insurance provider or us to process this request.
SOME POLICIES OFFER THE ‘AUTOMATIC SUM INSURED INCREASE FEATURE
This feature is a unique one that is prevalent in some policies. This feature increases the sum insured annually to match the rising costs of living. This increase is helpful as you or your beneficiary will receive a higher sum than the original one agreed upon when you first purchased the insurance product. However, the downside to this feature is that it requires an increase in premiums.
If your insurance company offers this feature, they will inform you of it, and you will be able to decline it if you are not interested.
COVERING CHILDREN UNDER FAMILY LIFE INSURANCE
Many policies offer policyholders the opportunity to add children’s insurance cover to their family life insurance policy. For example, if a parent or guardian purchases cover for a child who then experiences an injury, terminal illness, or passes away, the insurance company will make a lump sum payment to the policyholder.
In most cases, children’s cover applies to children aged 1-18 years old. In some cases, children’s cover may extend to 21 years old. Children’s cover ensures that the child is covered against accidental death, death due to illness, or diagnosis of a terminal disease. Some policies may include a range of injuries or illnesses outlined in the policy documents.
Many insurance companies also offer trauma cover, which falls under child cover. This type of insurance is valuable to cover a child against trauma, and your insurer will outline the details in the policy documents. In addition, parents, guardians, or grandparents will be able to purchase this cover for their child.
THE MAXIMUM FAMILY LIFE INSURANCE COVER
Although your life insurance policy depends on several factors, the benefits of your cover can be 20-25 times your annual income. This cover depends on your age and salary. Other factors that may affect the policy’s benefit are your job or business and your family’s needs.
Insurance companies will want to check the health status of a potential policyholder before offering a cover. The results of this check will depend on the benefits for which you qualify. For example, an insurance company will not provide coverage greater than the economic loss faced when the policyholder passes away.
Be conscious of the fact that the more benefits you sign for, the higher the premiums will be. Policyholders are not required to sign for the maximum coverage and opt for a lower cover with lower premiums. Before accepting coverage and its premiums, you should ensure that you can afford the premiums. We can assist you in doing so.
PURCHASING THE RIGHT AMOUNT OF FAMILY LIFE INSURANCE
Our website can offer you a free quotation after entering your details and expectations. Although your expectations matter, the amount of coverage you require mainly depends on your expenses. Those employed with a job that pays for their family insurance will not need to pay a separate cover. However, those who are self-employed or have an employer that does not pay for their insurance will need to pay a different cover.
When considering how much life cover you will need, consider this formula:
Life insurance cover required = (Future income + Immediate obligations) – Existing savings and other resources
Immediate obligations, or expenses, are expenses the dependents might face once the policyholder experiences a terminal illness or passes away. Examples of this are medical charges, funeral costs, personal loans, business-related debts, estate taxes, kids’ college funds, and mortgages.
At WealthSmart, we offer a range of services and expertise from our advisors, which you can use to choose the family life insurance products that suit you. We urge you to contact us with any queries or questions that one of our advisors will be able to answer. Get in touch with us by calling 1800 765 100.
THE LENGTH OF FAMILY LIFE INSURANCE
Most family life insurance policies expire once the policyholder turns 70 years old. The policyholder is also able to determine the length of family insurance. When doing so, you should consider these factors:
- How many years does it typically take before all your children become independent?
- How long will it take until the mortgage payments are completed?
- How many years do you think it will take before you and your spouse retire?
- What other long-term obligations do you have, and how long will they take?
It would help if you were aware of the fact that insurance companies do not always meet the expectations of potential policyholders. For example, insurance providers will consider your age and health status before offering you a policy. And if you do not meet the required criteria, they are within their rights to deny your application.
LIFE INSURANCE FOR BUSINESSES
GROUP LIFE INSURANCE
We all want to protect our way of life and cover any unexpected happenings. As an employer or an organisation, you can provide a wholesale-cost Life Insurance policy to a group of individuals. Financially protecting your business and your employees is a natural choice – find out what you should consider when purchasing Group Life Insurance with our helpful guide.
Life insurance for business owners comes with many safeguards in place. As an owner, it’s not just your family alone but a whole group of people who depend on you for their daily living. Hence, it is indispensable and enables your employers to get the insurance that benefits both of you.
Not only is a group cover the go-to small business life insurance, but it’s also highly cost-effective. Usually, group policies come with cost-effective premiums. If your employee is absent from work or suffers debilitating injuries, they may receive certain payments from the insurance firm. For start-ups, new business premium life insurance could be the answer to your insurance challenges.
WHY SHOULD AN EMPLOYER OFFER GROUP LIFE INSURANCE?
By providing group cover to the employees, an employer or organisation gains a range of benefits, such as:
- They are offering critical protection for their employees and the employees’ families. This benefit will ensure that their employees will be able to pay living expenses and additional medical expenses if they experience injury, illness, or death.
- By offering group life insurance, the business will gain financial protection and extra risk management. In addition, this will protect the company from unforeseen additional sick leave expenses.
- Businesses will not have to decide whether to pay a sick or injured employee, seeing that the group life insurance will automatically do so. The firm will also not be liable for any additional or related financial or ethical dilemmas.
THE COSTS AND REQUIREMENTS OF GROUP LIFE INSURANCE
When purchasing a group life insurance policy, it needs to cover a minimum of 10 employees usually and can cover a maximum of 200 employees. Smaller companies may be able to find group life insurance cover tailored to their company. Group life insurance can cover up to 75% of the gross employee salary.
The premium price of group life policies is usually at or near the wholesale premium price. If this is the case, the cover’s premiums will be cost-effective and will likely cost less than 1% of the total payroll. These premiums are also normally tax-deductible to the company, and the benefits do not attract Fringe Benefits Tax or GST.
At WealthSmart, we offer a range of services and expertise from our advisors, which you can use to choose the group life insurance products that suit you. We urge you to contact us with any queries or questions that one of our advisors will be able to answer. Get in touch with us by calling 1800 765 100.
EXCLUSIONS IN GROUP LIFE INSURANCE
As all insurance policies do, a life insurance policy will have a range of inclusions and exclusions. An example is that the death benefit will not be paid out if the policyholder commits suicide. Benefits will also not pay out if a policyholder intentionally injures themselves.
We will be able to explain the inclusions and exclusions of group life insurance policies that you may be interested in purchasing for your employees.
Before receiving any benefits or the lump sum, your life insurer must ensure that the claim falls within the parameters of the life insurance cover. If you do not comply with specific requirements in full, the insurance company may deny your claim application. When this happens, you may need to start the claim process afresh. Better yet, we advise you seek the help of our financial advisors to guide you through this process to avoid this occurrence.
Trustees have the responsibility to examine claims and verify the information provided. The waiting period may increase if the policyholder has not entrusted a beneficiary with their life insurance. The trustee also has the responsibility to determine if a critical illness, terminal illness, or death occurred while the policy was active, which may increase the waiting period. The waiting period may also increase when permanent disability claims are made and if a policyholder experiences a serious medical condition.
Policyholders should be prepared for a range of circumstances and assessments when making a claim, such as:
- The trustee can insist on a waiting period that can be up to three months should they require medical examinations by independent doctors. The relevant life insurance company will identify these doctors.
- Alternative employment potential assessments.
When purchasing an insurance product, you also need to consider the insurance provider. Not all insurance products are the same across different insurance providers and this may affect inclusions, exclusions, and premiums. Wealth Insurance Australia uses some of the top insurance companies in Australia and the world to find the best policies for you. The insurance providers we use are:
AIA Australia is currently a part of the world’s largest independent, publicly listed pan-Asian life insurance group, which is the AIA Group. AIA Australia was known as AIG Australia but changed its name after it left the US-based group to join the Asian-based group.
This insurance provider offers a range of insurance policies which is Life Cover, Total and Permanent Disablement (TPD), Crisis Recovery (Trauma), and Income Protection. As AIA Australia has the support of the larger pan-Asian AIA Group, they have greater financial stability and higher growth potential. This support, along with an A+ Standard and Poors rating, makes AIA Australia an insurance provider you can trust.
AMP, being one of the oldest life insurance providers in Australia, is renowned for their financial security and is the biggest provider of retail super, managed funds, and life insurance. This insurance provider also has expertise in financial planning, select banking accounts, superannuation, disability protection, and income protection.
AMP is a publicly listed company on the stock exchange and became the biggest provider of retail super, managed funds, and life insurance after it merged with AXA in 2011. Since the two companies merged they have experienced significant success having over 5 million customers and 400 institutional clients across Australia and New Zealand since 2013. AMP also has the largest network of financial advisers and planners in Australia and New Zealand.
This insurance provider offers a range of insurance products that fall under their Flexible Lifetime Protection products or their Elevate range. If you are interested in purchasing an insurance product from AMP you will be able to choose from Income protection, TPD Cover, Death Cover, and Trauma Cover. They also offer Life Insurance, TPD Insurance, Trauma Insurance, and Income Insurance. These insurance products are all customizable and the company’s customer-centric policy ensures that the client’s needs and wants are placed first at all times.
Asteron Life is known for their expertise in offering Life Cover, TPD Cover, Trauma Cover, and Income protection. Being one of the biggest general insurance, banking, and wealth management companies in Australia, Asteron Life has paid close to $250 million to over 3000 customers in 2010.
This insurance provider has been in operation since 1883 and claims to have written the first Life Insurance policy in Australia. Asteron Life is a member of the Suncorp Group which has assets of more than $95.5 billion and has over 9 million customers. This solidifies their reliability and dedication to the needs of the client.
Uniquely, this insurance provider offers the Asteron Life Wellbeing Program. This program was launched to improve the health and well-being of the policyholder. Policyholders who have access to this program can expect information, tips, recipes, health assessment tools, and meal and weight-loss programs for them to use to live a better, happier, and healthier life.
BT, which was known as Banker’s Trust, has been in operation since 1969 and is a part of the BT Financial Group. The BT Financial Group is the wealth management arm of the Westpac Group. This insurance provider is known for its expertise in offering insurance, superannuation, and investment solutions. BT Australia, which is one of the largest wealth management businesses in Australia, also offers insurance products like Term Life Cover, Total and Permanent Disability (TPD) Cover, Living Insurance, and Income Protection.
ClearView is an insurance provider which partners with financial advisers. This insurance provider aims to assist Australians in protecting their wealth, growing their wealth, and securing their ideal financial future. ClearView is listed on the Australian Stock Exchange and has been around since 1976, originally known as NRMA Life.
ClearView offers insurance products like Life Cover, Total and Permanent Disability (TPD) Cover, Trauma Cover, Income Protection Cover, Business Expense Cover, and Child Cover. Their insurance products are renewable and are able to be indexed, which means the cover is increased to keep up with annual inflation. Policyholders are also guaranteed to receive an automatic upgrade if any changes or new benefits are added to the insurance products which they have bought.
CommInsure is the wealth management division of the Commonwealth Bank and has been in operation since 1995. Originally known as Commonwealth Connect Insurance Limited, this insurance provider is a leading life insurer in Australia and is listed on the Australian Securities Exchange.
CommInsure is known for its expertise in offering Life Care, Terminal and Permanent Disablement (TPD) Cover, Trauma Cover, and Income Care. The insurance provider has over close to $2 billion worth of in-force premiums since 2012 and pays close to $13 million weekly in premiums.
Uniquely, this insurance provider is a signatory to the United Nations Principles for Responsible Investment. Being passionate about responsible investment has resulted in CommInsure pledging to consider a range of factors like environmental, social, and corporate governance factors before investing.
Macquarie Group is a thriving insurance provider which operates in 28 countries and has over 13, 000 employees. The insurance provider had undergone a rebranding in 2007 by losing the word ‘bank’ in its formal title and has seen significant growth. This growth is justified by the fact that Macquarie Group is the largest investment bank in Australia.
Macquarie Group is known for its expertise in offering a range of insurance products such as Macquarie Life Active, FutureWise Total, and Permanent Disability (TPD) Cover, FutureWise Disability Income Insurance, and FutureWise Trauma Insurance. One of the company’s unique insurance products is the Macquarie Life Active policy. This policy provides a lump sum for death, terminal illness, as well as additionally specified medical events. Examples of these medical events are heart attacks, stroke, cancer, digestive conditions, and severe depression.
MLC Insurance is one of the largest wealth management and insurance companies in Australia and has a range of specialties. This insurance provider is known for offering investment opportunities, superannuation, insurance, and private wealth solution for corporate and intuitional customers. MLC Insurance is the second-largest superannuation provider in Australia and has been in operation since 1886 when it formed a part of The Citizens’ Assurance Company Limited.
Australians can purchase a range of insurance products from MLC Insurance, such as Life Cover Insurance, Total and Permanent Disability (TPD) Insurance, Critical Illness Insurance, and Income Protection Insurance. MLC Insurance is invested in the longevity and well-being of its policyholders and has become a partner of the Garvan Institute for Medical Research because of this. This insurance provider also has a foundation, which is the MLC Community Foundation which functions to support and fund community mental health organisations and programs.
NEOS Life is one of the leading life insurance businesses in the country. This insurance provider uses qualified financial advisers to offer retail life insurance quotes and products which are designed to suit the financial circumstances and lives of potential policyholders. This trusted insurance provider offers insurance products that NobleOak issues and which are reinsured by Pacific Life Re
NEOS Life offers insurance products like Life Cover, Total and Permanent (TPD) Cover, Critical Illness Cover, Child Cover, and Income Protection Cover. The insurance provider also uses the latest technology which has allowed them to pledge that 80% of its underwriting decisions will be made within 3 working days.
OnePath Life Insurance is known for its competitive pricing, available extras, easy application process, and helpful customer service. This insurance provider serves clients in Australia, New Zealand, and 30 other countries and specialises in wealth management.
OnePath Life Insurance offers a range of insurance products that potential policyholders can choose from like Income Protection, Trauma Cover, TPD (Total and Permanent Disability) Cover, and Life Insurance. To the benefit of the policyholder, OnePath Life Insurance ensures that their clients will receive an upgrade to their benefits if the policy changes or if any improvements are made.
Uniquely, this insurance provider has an affiliation with the Qantas Frequent Flyer club. Clients of OnePath Life Insurance are able to earn one frequent flyer point for every $1 they pay in premiums to the insurance provider.
TAL has been in operation since 1990 and is known for its expertise in offering life insurance and income protection. This insurance provider has millions of clients in Australia and had over $1.72 million in premiums paid in 2013. TAL was known as TOWER Australia Limited and became a wholly owned subsidiary of the Dai-ichi Life Company in 2011.
TAL offers a range of insurance products like Life Insurance, TPD Insurance, Critical Illness Insurance, and Income Protection. The insurance provider has also been the recipient of many awards over the years. Some of the most prominent awards have been Life Company of the Year 2011 and the Life & TPD Insurance Product Award 2011.
Uniquely, TAL is also passionate about social, corporate, and environmental responsibility. The insurance provider has been recognised by the Fair Trade Community due to their exclusive use of Fair Trade products. The company also makes a difference by participating in Earth Hour annually.
Zurich Life Insurance has been in operation since the 1920s, originally known as the Commonwealth General Assurance Corporation. This insurance provider is a leader in Australia and also operates in over 70 countries. Potential policyholders can choose from a range of insurance products, like Ezicover Accidental Death Insurance, TPD Insurance, Trauma Cover, and Income Replacement.
Zurich Life Insurance also aims to make a difference in the lives of its clients by offering ethical and responsible insurance. To achieve this, Zurich Life Insurance focuses on responsible investing and became a signatory of the United Nations-backed Principles for Responsible Investment in 2012. Zurich Life Insurance is also invested in flood resilience as it is a part of an international program that helps countries such as Nepal, Indonesia, and Mexico.
The insurance provider also emphasises its support of environmental protection as it is committed to reducing its environmental footprint by 10% and has been successful in reducing its carbon footprint by 17% per employee. Corporate responsibility is also a big focus within the company as they are a signatory to the General Insurance Code of Practice.
DIFFERENT TYPES OF LIFE INSURANCE IN AUSTRALIA
In Australia, you are able to purchase six different types of life insurance. If buying family life insurance interests you, then you should be aware of the different kinds of insurance to know which ones your family needs.
Life cover, which is also known as death cover, offers a lump sum if the policyholder passes away. If the policyholder also purchases term cover, they buy peace of mind for their beneficiaries, who will receive the payout from the cover if the policyholder suffers from a terminal illness. If you fall in the 18 to 79 year age group, you will be eligible to purchase life cover.
- Income protection insurance
This insurance ensures that the policyholder and their beneficiaries receive ongoing benefits every month. The benefits received are able to be a maximum of 70% of the policyholder’s regular income. You can use these benefits as you need to cover expenses if the policyholder is temporarily unable to work due to suffering from an illness or injury. If you are in the age group of 18 to 64, you will be eligible to purchase income protection insurance.
Trauma cover functions to offer cover if the policyholder suffers trauma, such as a stroke. Insurers typically pay out this trauma cover as a lump sum. As the beneficiary, you can use it to cover medical costs, living expenses, and ordinary daily expenses. If between 18 and 64 years, you will be eligible to purchase trauma cover.
TPD, which stands for total permanent disability, the cover offers a lump sum if the policyholder is the victim of an illness or injury that results in them being permanently disabled. This cover will cover the necessary medical and living expenses. If you are between the ages of 18 to 64, you will be eligible to purchase TPD cover.
Funeral insurance offers the policyholder’s beneficiaries money to pay for their funeral after they have passed away. A fixed cover is provided, which is usually a lump sum between $5000 and $15000. If you are between 18 and 79, you will be eligible to purchase funeral insurance.
- Accidental death insurance
Accidental death insurance offers policyholders protection if they suffer from an accident and gain an injury or pass away. The insurance company will meet their commitment by paying out a lump sum to beneficiaries for this product. The beneficiaries can then use the cash to cope with their financial loss. If you fall into the 18 to 64 age group, you will be eligible to purchase accidental death insurance.
Although these different types of insurance offer a range of coverage that may be desirable, family life insurance is possibly the most comprehensive cover. Being the number one choice of most Australians, people opt for family life insurance to protect the families and loved ones of the policyholders from financial strain following worst-case scenarios.