Learn More About Life Cover

What is Life Cover?

‘Life Cover’ also known as 'term life insurance' or 'death cover' is a lump sum payment to your nominated beneficiaries made to provide financial help in an event of terminal illness or death. This lump sum payment could help your family tremendously in the unlikely event of your sudden passing.

According to the Australian Prudential Regulation Authority (APRA), in the year ending in June 2020, life insurers paid out just over $10 billion to Australians and/or their dependents as a result of a terminal illness or the death of a policyholder.

Do I need Life Cover?

Life cover is a personal decision, but if you have a partner or dependents, it may be a worthwhile decision as it can help repay debt and cover living costs.

How do I buy Life Cover?

It is beneficial to check if you already hold life insurance through your super account as some super funds offer life cover for an additional fee, called a premium. You may be able to increase your level of cover via your super fund if necessary.

Life cover insurance can be bought individually or packaged with other insurances such as Total and Permanent Disablement (TPD), income protection and insurance. It is important to understand what your insurance policy covers in terms of illness, injury, and disablement.

It’s also important to look into whether the insurance policy will cover you for claims associated with COVID-19.
Information your insurer will ask for

When you are applying for insurance, the insurer will ask a number of questions, including but not limited to your:
• Age
• Job
• Medical history
• Family medical history
• Lifestyle (e.g. if you’re a smoker)
• High-risk Sports or Hobbies (e.g. surfing, skydiving)

The information you supply will help your insurer decide the terms and conditions of the policy, the cost of premiums, and ultimately whether they will insure you.

Finding insurance that fits all your needs can be tricky. At Wagtail Wealth, we help you understand, assess and select the right insurance for your personal circumstances.

For more information, contact us today.

IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.

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