Australian Life Insurance Search:

Search for life insurance products in Australia: life insurance, income protection insurance, trauma insurance, etc.

Wednesday, June 23, 2010

Term Life Insurance in Australia

Term Life Insurance is the cheapest and most basic life insurance product in Australia. Term Life Insurance provides a lump sum payment to your spouse/dependants and/or estate to pay out debts and help your loved ones continue with a similar lifestyle if you were to suffer premature death or be diagnosed with a terminal illness with less than 12 months to live.

Who can take out Term Life Insurance?

You must be Australian resident and be between certain ages to take term life insurance. Depending on the company minimum age is usually 15-18 and maximum age is 60-75.

Contrary to UK or USA where term life insurance is bought for a certain term (10, 20, 30 years), in Australia - as long as you paying your premiums - term life insurance cover can continue until cover anniversary date which is usually 99 years. However you can choose to stop paying your premiums at any stage and therefore forfeit any future benefits in the event of your death.

Term life insurance in Australia doesn't have investment component and thus if you stop paying your premiums you will not receive any investment return or refund from the insurer.

How much Term Life Insurance Cover you can apply for?

Usually minimum amount of cover you can apply for is $100,000. Some companies has $50,000 as starting amount. You can increase your cover by the increments of $50,000 by up to $10,000,000

Please consider amount carefully. Term Life Insurance should cover your debts and provide your family with the funds to to meet their future financial needs if you were to die. Too little or too much cover is waste of money. General rule of thumb is you should get covered for 10 times your annual income plus current debts.

When you should consider Term Life Insurance?

Term Life Insurance becomes important when you have dependents or debts. So events like these should prompt consideration of term life insurance cover:
  • Getting married
  • Having children
  • Buying property or any other asset involving debt
  • Starting your own business
  • Setting up a Self Managed Super Fund
  • Putting together a Financial Plan

When Term Life Insurance claim will not be payable?

Usually term life insurance claim will not be payable if death or terminal illness is directly or indirectly caused, or contributed to, by:
  • suicide, or an intentional self inflicted act within 13 months of the Cover start date;
  • criminal act by the insured person;
  • alcohol abuse or alcohol dependence;
  • improper use of prescription drugs, over-the-counter
  • drugs, and controlled substances; or
  • a pre-existing condition.

Cooling off period

All companies provide cooling off period for your term life insurance. When you are accepted for Cover, you have 21-30 days from the date that Cover starts to check that the Cover meets your needs. This is known as the cooling off period. As long as you do not make a claim during this period you can cancel the Cover during the cooling off period and companies will refund any premiums you have paid. Your request to cancel
must be in writing.

Guaranteed Renewable Cover

When you start paying your premiums and you continue to pay your premiums when due, your Term Life Insurance policy is guaranteed renewable until Cover ends. This means that insurance company cannot cancel or alter the terms of the Cover because of changes in your health, occupation or pastimes.

This is very important condition and this is why you should insure yourself early enough when you are still healthy and fit

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Wednesday, June 16, 2010

Life Insurance Types in Australia

There are 4 different life insurance products available to help you cover your income, debts and lifestyle costs. They usually called life insurance types:
  • Term Life Insurance
  • Trauma Insurance
  • Total and Permanent Disablement Insurance
  • Income Protection Insurance

Term Life Insurance

Term Life Insurance provides a one-off lump sum payment in the event of your death or terminal illness (less than 12 months to live). It's the only type of life insurance where you will not get benefits yourself. Most of the time payment will be paid to your family or other beneficiaries you name.

Term life insurance payment can help your family continue to live the life you’ve planned together:
  • focus on living life without worrying about finances,
  • stay in the family home – pay off the mortgage or cover the rent,
  • keep the kids at their school and make future education plans
  • on-going day-to-day living expenses.

Trauma Insurance

Trauma insurance pays you a one-off lump sum if you have a serious medical condition (like cancer, heart attack, stroke or an accident), so you can focus on recovering without worrying about finances. You could use the benefit to:
  • cover your out-of-pocket treatment costs – or afford the best treatment available!
  • make lifestyle changes so you can focus on healing – like permanently reducing the number of days you work
  • take some time off work or take a stress-free family holiday.

Total and Permanent Disablement

Total and Permanent Disablement Insurance (TPD Insurance) is normally an extra cover on a life insurance policy and usually covers you for some permanent disability that prevents you from working in your usual occupation.

TPD insurance helps you modify your lifestyle and gives you choice and options if you're left without the ability to work. TPD generally allows you to claim it only once and payment can help you:
  • fund lifestyle changes and home modifications,
  • cover the cost of long-term care or medical expenses,
  • pay off any debts including your mortgage, 
  • fund an ongoing income for your family.

Income Protection Insurance

Income Protection Insurance pays you a monthly benefit if you can’t work due to sickness or injury. Main requirement is that you have to work or receive some kind of income that stops if you get injured.

In Australia most income protection policies will pay you up to 75% of your net income either for a limited period or until you reach the age of 65. The money can help you:
  • cover your mortgage or rent payments,
  • continue to make your repayments on your car,
  • take care of all your normal bills while you focus on getting better.

More about Life Insurance Types

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Monday, June 14, 2010

Life Insurance Market in Australia

When you want to buy any life insurance product you usually deal with one of 3 participants of life insurance market:
  • life insurance companies
  • life insurance brokers
  • life insurance leads generators

Life Insurance Companies

Here is the list of registered life insurance companies in Australia according to Australian Prudential Regulation Authority:
  • AIA Australia Limited
  • Allianz Australia Life Insurance Limited
  • AMP Life Limited
  • Asteron Life Limited
  • BT Life Limited
  • Challenger Life Company Limited
  • Colonial Mutual Life Assurance Society Limited
  • Combined Life Insurance Company of Australia Ltd
  • Cuna Mutual Life Australia Limited
  • General Reinsurance Life Australia Ltd
  • GLOBAL Life Reinsurance Company of Australia Pty. Limited
  • Hallmark Life Insurance Company Ltd.
  • Hannover Life Re of Australasia Ltd
  • H C F Life Insurance Company Pty Limited
  • ING Life Limited
  • IOOF Life Ltd
  • Macquarie Life Limited
  • MBF Life Limited
  • MetLife Insurance Limited
  • MLC Lifetime Company Limited
  • MLC Limited
  • Munich Reinsurance Company of Australasia Limited
  • Norwich Union Life Australia Ltd.
  • RGA Reinsurance Company of Australia Limited
  • St Andrew's Life Insurance Pty Ltd
  • St. George Life Limited
  • Suncorp Life & Superannuation Limited
  • Swiss Re Life & Health Australia Limited
  • The National Mutual Life Association of Australasia Limited
  • Tower Australia Limited
  • Westpac Life Insurance Services Limited
  • Zurich Australia Limited
Life Insurance companies sell only their own life insurance products. So if you want to find best prices by going direct with life insurance company, you need to contact each company separately. However some life insurance companies sell their products only through financial advisers or life insurance brokers.

Life Insurance Brokers

Some of most known online life insurance brokers in Australia are:
  • Life Broker
  • Rate Detective
  • Insurance Watch
  • xLife
  • iSelect
Life Insurance brokers compare life insurance products from their panel of life insurance companies. It's free service for customers as brokers have been paid by life insurance companies, however that doesn't change your premiums.

Life Insurance Leads Generators

Most active life insurance leads generation companies are:
  • HelpMeChoose
  • Zippy
  • Financial Services Online
  • InfoChoice
Leads generation companies provide some content or just the enquiry form and collect contact information. Then they sell that contact information to life insurance company or life insurance broker.

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