What Life Cover Usually Includes

• A lump sum payout to your nominated beneficiaries if you die
• Early payment if you are diagnosed with a terminal illness (usually 12 to 24 months life expectancy)
• Use of funds is flexible — your family can put it toward:
  • Mortgage or rent
  • Living expenses
  • Education costs
  • Final expenses (funeral, legal, taxes)

What’s Not Usually Covered

• Death due to suicide within the first 13 months of starting the policy
• Death resulting from undisclosed pre-existing conditions
• Fraud or criminal activity

Additional Options You Can Add

These are not part of basic life cover but can be bundled:

• Trauma Cover: For serious medical conditions like cancer or heart attack
• Total and Permanent Disability (TPD): If you can’t work again due to illness or injury
• Income Protection: Pays a portion of your income if you can’t work temporarily due to illness or injury

FAQs

Can my family use the payout however they want?

Yes. There are no restrictions on how the lump sum is used. It’s designed to reduce financial pressure however it’s needed.

Is funeral cover included?

Not specifically, but the life insurance payout can be used to cover funeral costs.

What about cover inside my super?

Many Australians have a basic level of life insurance through their super fund, but the cover is usually limited and may not suit your needs.

Final Thought

Life insurance is flexible and powerful. The key is understanding what’s covered and choosing the level of protection that feels right for your family.

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