LIFE INSURANCE AUSTRALIA / READ BELOW

Life insurance

9jahitsongs Media November 24th, 2023, 3:01 am

What is life insurance and why is it important?

Life insurance is a way of helping to protect your family’s financial future and can provide much needed security in times of uncertainty.

Our Life Insurance pays a lump sum in the event of your death or if you’re diagnosed with a Terminal Illness3, which can help support your family when you’re no longer around to provide for them. The lump sum payment can be used for any purpose and can help your loved ones cover things like debts and living expenses at a time when they may need it most.

When you take out Life cover3, you have the option of applying for Critical Illness cover4 and Permanently Unable to Work cover5 at an added cost, which can help protect your way of life.

You’re also entitled to a 30-day cooling off period if you change your mind.6

LIFE COVER

Life cover, or Life Insurance, covers death or Terminal Illness to help protect your family’s future.3,7
Up to $1.5m cover depending on your age7,8
Terminal Illness where death is likely to occur within 24 months3
$15,000 funeral advancement included within the cover9
Guarantee to continue cover until the policy anniversary after your 99th birthday10
Benefit increases every year to stay ahead of inflation11

Critical Illness cover

Critical Illness cover, or trauma cover, can help relieve your financial burden if you’re diagnosed with a defined Critical Illness event.4,7,8
Up to $500,000 cover depending on your age7,8
Pays a lump sum benefit if you suffer one of the 14 defined Critical Illnesses4
Guarantee to continue cover until the policy anniversary after your 70th birthday10
Benefit increases every year to stay ahead of inflation11
Reinstate your Life cover amount 12 months after a Critical Illness claim8

Permanently Unable to Work cover

Permanently Unable to Work cover, or Total and Permanent Disability (TPD) cover, helps minimise the impact that sickness or injury has on your way of life.5,7,8
Up to $1.5m cover depending on your age7,8
Pays a lump sum benefit if you’re unlikely ever to work again due to sickness or injury5
Guarantee to continue cover until the policy anniversary after your 65th birthday10
Benefit increases every year to stay ahead of inflation11
Reinstate your Life cover amount 12 months after a Permanently Unable to Work claim8

Insurance Calculator

Our calculator is designed to provide you with an estimate of how much insurance protection cover you may need in the event of a trauma, death, total and permanent disability (TPD) or if you are unable to work. Plus it’s simple and easy to use.

What is Underwriting?

Underwriting can make all the difference when individual circumstances need to be factored in. That’s why we employ a dedicated and experienced local underwriting team to find the very best solution for your insurance.

Speak to your adviser

We live in a fast-paced world, but with MetLife it’s easy to protect what matters as your life changes.

Choosing your level of cover

When you apply for Life Insurance, you can choose how much you would like to be covered for, based on your personal and family requirements.
In return for cover, you pay a regular premium, which will vary based on the type of cover you choose, the amount you choose to be covered for, your age, medical history and lifestyle factors, such as whether you smoke. Generally, the higher the amount of cover you have and the older you are, the higher your premium will be.

Life insurance

is
an important way to provide financial security for loved ones and can help ease the financial burden during a difficult time. Life cover has become increasingly important due to the rising cost of living and an ageing population. Overall, life insurance is an important tool for protecting loved ones in the event of an unexpected death, and it can provide peace of mind knowing that your family will be taken care of if something happens to you.

Definition of life insurance

Life insurance provides financial protection to the policyholders’ beneficiaries in the event of their death. The policyholder pays regular premiums to the insurance company. In exchange, the insurance company agrees to pay a lump sum to the beneficiaries named in the policy in case of the life insured’s death.

The beneficiaries can use this lump sum to cover funeral costs, outstanding debts, and ongoing living expenses. In addition, some life insurance policies may also provide benefits if the insured suffers from a terminal illness or becomes permanently disabled.

Source: Life Insurance Direct Comparison Engine (March 2023, Premium estimates for $ 1 million of life cover for a 35-year-old non-smoking individual who lives in NSW)

How to compare policies
When comparing life insurance policies, it’s important to consider several factors to ensure you choose the right one that suits your needs and budget. These factors include coverage amount, type of policy, premiums, underwriting process, and insurer’s reputation.

Premiums: Policy premiums are generally made up by adding the base premium, policy fees and any applicable stamp duties. These are typically not applied to life cover but may be added to other policy types like Income Protection. To find the cheapest life cover, look for discounts for annual payments, savings when purchasing other types of cover from the same company and healthy life discounts. Alternatively, you could save on your premiums by maintaining a healthy lifestyle.
Premium Types: Typically, there are three types of term life premiums:
Stepped premiums: Start cheap but cost increases as you age each year.
Level premiums: These may be more expensive when you apply for cover but do not increase due to a change in age and are worth considering for long-term affordability.
Hybrid premiums: Combines stepped and level premiums. Your premiums start as stepped but are converted to level style policy once the stepped premiums reach a higher amount than the level premium amount.
Built-in Benefits: It’s important to examine the benefits you receive from your life cover. Some benefits are standard. However, these benefits may only be found in some policies. Or, some benefits may come standard with one provider but could be a paid-for option with another insurer. Common built-in benefits include:
Terminal illness benefit: If you are diagnosed with a terminal illness and have less than 12 -24 months to live, depending on the insurer, they will pay the full death benefit to you in advance.
Funeral advancement benefit: Typically range from $10,000 to 10% of your sum insured to help cover funeral expenses once the insurer receives the full claim forms and a valid death certificate.
Future insurability benefit: Allows you to add to your cover after a significant life event without providing additional medical information.
Financial advice benefit: Depending on your insurer, you could be reimbursed for the cost of obtaining financial advice. Depending on your insurer, this benefit generally ranges between $2,000 and $5,000.
Premium freeze option: If you’re on a stepped premium structure, you can freeze your premiums. However, your level of coverage will typically be reduced to keep your policy at its current price.
Indexation: To help your policy keep up with inflation, your level of cover increases either by the CPI or a set percentage (3-5%, depending on the insurer) each year, whichever is greater.
Interim cover: If you pass away due to an accident during your policy assessment, your insurer may provide a lump sum payment. Insurers generally pay out the lesser of $1,000,000 or your sum insured at the time of application.
Exclusions: A standard exclusion refers to events, conditions, or circumstances your insurer won’t cover. For instance, most insurers won’t pay out your policy if your death resulted from suicide in the first 13 months after your policy was accepted. However, read your policy disclosure statement (PDS) to find out what you won’t be able to claim.
Expiry Ages: Different policies have different expiry ages. Typically, you’ll find that most term life policies expire when you turn 100 years old. However, it’s best to check with your insurer.