What does life insurance cover me for?
Here are some of the events you can choose to be covered for under your TAL insurance policy.
- If you die or are diagnosed with a terminal illness: your family receives a lump-sum payment. This is called Life insurance.
- If you’re diagnosed with a serious critical illness such as a malignant cancer or you suffer a heart attack: you receive a lump-sum payment. This is often called Critical Illness insurance.
- If you’re permanently disabled and unable to work: you receive a lump-sum payment. This is often called Total & Permanent Disability (TPD) insurance.
- If you’re temporarily unable to work due to illness or injury: you receive up to 75% of your income for a defined timeframe. This is called Income Protection.
This is a general guide only to some of the different types of life insurance cover and the circumstances in which a claim may be payable. You can find out exactly what you’re eligible for by reading the terms and conditions of your insurance policy, which are detailed in the relevant product disclosure statement and any relevant policy document.
How much life insurance do I need?
The amount of insurance you need depends on you and your unique life circumstances. This information does not consider your individual needs, objectives or financial situations. You should consider your individual circumstances before making any decision.
For example, you insure your car or your home contents for the amount that it would cost to replace whatever was damaged or stolen. With life insurance, you should consider how much you’d need to keep up your lifestyle or the lifestyle of the ones you love, if the unexpected happened.
Some questions which can help you to understand how much cover you’d need, include:
- Do you have a mortgage or other debts?
- Do you have a spouse or partner? If so, are they working and could they support themselves financially?
- Do you have any kids or other people who depend on you to look after them?
- What would be the impact to your day-to-day lifestyle if you didn’t have your income?
- For how long would you like your family to live on the payment?
- How much could rehabilitation cost if you needed it?
I have life insurance as part of my super, is that enough?
Most Australians have some form of life insurance through their super. The default level of cover is not based on your unique current and future financial obligations, so you may want to check to see if any life insurance held through super is appropriate for you. You may also want to consider whether you’re able to take your insurance with you if you leave your employer.
Will my life insurance pay for ongoing medical expenses?
No, life insurance works differently to health insurance or government help, which might cover you for medical expenses like specialist appointments or hospital treatment.
We do offer a range of support services to help with your rehabilitation, which you can apply to use as part of your recovery plan, at no cost to you.
How often do I pay insurance premiums?
We offer annual, half-yearly, quarterly and monthly payment options.
How can I pay for my insurance?
We accept payments by direct debit from your bank account or credit card. We also welcome payments by BPAY and cheque. If your policy is structured through your super fund, we can accept payments by ‘rollover’ (transferring money from one super account to another).
If you’d like to make a payment, contact us and we can walk you through the process over the phone.
What happens if I give the wrong information or leave out information at the time of application?
It’s important to give all the necessary correct information when you apply for your policy. If you haven’t given complete and accurate answers to the questions when you applied for cover, there is a risk part or all of your claim will not be paid or your policy could be cancelled / voided.
For example: At the time of applying for your cover, you forget to tell us that you had a minor heart condition two years earlier. You unfortunately pass away from a heart attack. We may be entitled to decline your claim or your policy could be cancelled / voided on the grounds that you did not disclose information that would have affected our offer of insurance to you.
Can I increase my insurance cover?
You may be able to increase your level of insurance cover. You can contact us to discuss your options with our Life Insurance Representatives. Or, depending on how you bought your cover, you can contact your financial adviser, superannuation fund or employer to find out if you can increase your cover, and the steps to take.
Do I pay tax on the payments I receive from insurance?
Payments you receive from your policy may be assessable for income tax purposes. We recommend that you seek independent tax advice from an accountant or contact the Australian Tax
What is underwriting?
Underwriting is a term used to describe the process of assessing insurance risk prior to issuing a policy. It usually takes the form of questions about your occupation, medical history and activities you enjoy doing. Underwriting is designed to ensure the premiums and cover terms for your insurance plan are appropriate for your own medical situation, lifestyle and occupation, and for the insurer to assess if insurance can be provided to you and if so on what terms.
Does my insurance always need to be underwritten?
If you get cover through your employer or super fund, you may be automatically accepted as your cover falls below a certain level. If you buy your cover directly from us or through an adviser then your policy may require underwriting.
Can I speak to TAL about the underwriting process when I’m completing an application form?
Yes, you can email us and we’ll give you a rough idea of the insurance terms that may be available. This may be subject to you providing medical evidence.
If you’re applying for insurance through your super, you can call our Group Risk team on 1800 666 136 for help.
What happens after my application is assessed by an underwriter?
There are four possible outcomes for your insurance application:
- Accepted: This means your application has been accepted at standard rates and terms.
- Accepted with Loading: This means your application has been accepted but with an additional premium, so you’ll have to pay more for the cover you applied for.
- Accepted with Exclusion: This means your application has been accepted at standard rates, but with exclusions. An exclusion means you won’t be covered for, and can’t make a claim, if you suffer a specified excluded medical condition. Or, if you’re injured or die as a result of participating in an excluded pastime or activity. (For example, skydiving or motor racing.)
- Declined: This means we’re unable to provide you with all or some parts of the cover you applied for, as suitable terms cannot be offered.
Are there some Government or Insurance Industry sites where I can find out more information about life insurance?
Yes, the following are some useful websites:
- The Financial Services Council (FSC) is a body which sets mandatory Standards and develops policy for more than 100 member companies in Australia’s largest industry sector, financial services.
- The Australian Financial Complaints Authority (AFCA): AFCA provides accessible, fair, free and independent dispute resolution for consumers and financial services providers. (Certain matters remain under the jurisdiction of the Superannuation Complaints Tribunal for a transitional period.)
- The Australian Securities & Investments Commission (ASIC) : This is a Commonwealth Government body which regulates the financial services industry to ensure that Australia’s financial markets are fair and transparent, and that consumers have access to information to make informed financial decisions.
- The Australian Prudential Regulation Authority (APRA) : This is the regulator of the Australian financial services industry (including banks, credit unions, insurance companies and the super industry) with the aim of protecting the financial wellbeing of the Australian community.
What is indexation?
Indexation is a way to help future-proof your insurance payment against the effect of inflation. Every year, as the cost of goods and services increases, your amount of cover will increase at the same, or a similar, rate. This is reflected in your premium. This will help to ensure that your insurance cover has not been eroded by the effects of inflation if you, or your family, need to pay expenses from your payment.
What is probate?
When a person dies, somebody has to deal with the assets and liabilities of the person’s estate. Probate is the process of proving and registering the will of a deceased person in the Supreme Court.
A grant of probate from the Supreme Court is the legal authority that means the will is valid. It allows the executor (the person dealing with the estate) to administer the estate according to probate law, and to distribute assets to the beneficiaries named in the will. That’s one reason why it’s so important to have an up-to-date will.
Who is Dai-ichi Life?
Dai-ichi Life is the third largest life insurer in Japan and the owner of TAL.
How can Workers’ Compensation payments affect my insurance payouts?
Workers’ Compensation will only cover you if your injury happens in the workplace or your sickness can be directly linked to your employment. You will not be given any assistance for time off work resulting from any sickness or injury which happens outside the workplace. Your monthly benefit paid for an Income Protection claim may be reduced if you're also receiving Workers' Compensation benefits.
Can I cancel my policy if I no longer need it?
Yes, you can cancel your policy at any time. To cancel your policy, you can speak to your financial adviser or contact us. We understand your circumstances may change, and we welcome a conversation about your needs.