Life Insurance

Who can apply?

You can apply for life insurance benefits or cover provided you are between the following ages.

Premium Type	Entry ages
	Minimum	Maximum
Stepped premiums	15	75
Level premiums	15	60

 

How much Life Insurance should I have, or do I need?

The minimum amount insured for most companies is $50,000.00.

What are some of the built-in and/or optional features I can add to a policy of life insurance?

Death Benefit

If you should pass away at any time for whatever reason the company will pay the amount insured.

Terminal Illness Benefit

Should you be diagnosed with a terminal sickness (generally diagnosed with less than 12 months to survive the company will pay the amount of the sum insured in advance)

Accommodation Benefit

Some companies provide a payment, usually up to $150 per day, for a maximum of 14 days, for members in the family for accommodation costs should you be confined to a hospital bed due to terminal illness (this particular benefit is usually not available if it taken under superannuation arrangements).

Financial Advice Benefit

Many companies pay an amount to the family of the deceased client, or terminal illness, reimbursement of up to $2,000.00 for the preparation of financial plan prepared by a licensed Financial Planner (this particular benefit is not available if the life insurance is taken out under superannuation).

Advance Assistance Benefit

In many companies plans should you have cover of more than $25,000.00 when you pass away the company will pay $25,000.00 on receipt of a full Australian Death Certificate or other evidence satisfactory to the company (this particular benefit is usually not available if life insurance is taken out under the superannuation arrangements).

Most life insurance companies provide this type of plan with the associated built-in options.

Options available at extra contribution/premium cost

Once you have set up your life cover you can elect to include several options, example of some as follows:

• Premium Waiver Option.

Should there be a claim as in terminal illness or long term total and permanent disability many companies will allow this particular option to be put into force, i.e. the premiums applicable to those other policies are wavered whilst the client is unable to work and/or function.

• Business Guarantee Option.

This particular option gives you the flexibility to increase insurance protection without having to supply any further medical evidence as your business requirements grow. It may well be useful for any of the following purposes nominated by yourself and approved by the particular company in question as at the time of taking out the policy.

• Business Succession Planning
• Loan Guarantee Insurance
• Key Person Insurances
• Any business insurance purpose which the company would approve of.

When does Life Cover end?

The Life Cover normally ends automatically as follows:

• Date of claim
• Date the cover is cancelled or avoided
• At the Anniversary when the life insured is 75 years of age if the policy is issued under superannuation.
• Most companies will accept an application for life insurance, without health underwriting, for the Life Cover to continue beyond age 75 on the same terms as a non-superannuation policy.

The key feature of having life insurance is quite often used to pay debts, leave money to family to live on or help with living expenses, such as educational funding for children. Could also be used for Estate planning and/or Business buy outs to protect small businesses and other multiple purposes.

 

Example of Multiple Policies and Plans including Life Insurance

Male – Non Smoker Aged 35 Occupation – Clerical or light duties Stepped Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$16.67
Total and Permanent Disability	$300,000.00	$10.96
Miracle Cover/Major Trauma	$300,000.00	$54.11

Please note the above mentioned premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $13,119.40 per annum.

 

Male – Non Smoker Aged 35 Occupation – Clerical or light duties Level Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$28.75
Total and Permanent Disability	$300,000.00	$28.31
Miracle Cover/Major Trauma	$300,000.00	$135.76

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $2,532.48 per annum. (As a level premium is based upon the age at entry, or commencement)

 

Female – Non Smoker Aged 35 Occupation – Clerical or light duties Stepped Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$12.28
Total and Permanent Disability	$300,000.00	$11.06
Miracle Cover/Major Trauma	$300,000.00	$86.49

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $9,369.00 per annum.

 

Female – Non Smoker Aged 35 Occupation – Clerical or light duties Level Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$21.31
Total and Permanent Disability	$300,000.00	$28.43
Miracle Cover/Major Trauma	$300,000.00	$140.64

Please note the above premiums are based upon non-smoker rates, OnePath is the source. 
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $2,510.28 per annum. (As a level premium is based upon the age at entry, or commencement)

 

Male – Non Smoker Aged 40 Occupation – Clerical or light duties Stepped Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$21.50
Total and Permanent Disability	$300,000.00	$17.05
Miracle Cover/Major Trauma	$300,000.00	$99.29

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $13,119.00 per annum.

 

Male – Non Smoker Aged 40 Occupation – Clerical or light duties Level Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$44.93
Total and Permanent Disability	$300,000.00	$52.05
Miracle Cover/Major Trauma	$300,000.00	$241.33

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $4,450.00 per annum. (As a level premium is based upon the age at entry, or commencement)

 

Female– Non Smoker Aged 40 Occupation – Clerical or light duties Stepped Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$16.29
Total and Permanent Disability	$300,000.00	$17.06
Miracle Cover/Major Trauma	$300,000.00	$120.08

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $10,521.00 per annum.

 

Female – Non Smoker Aged 40 Occupation – Clerical or light duties Level Premiums
Level of Protection	Sum Insured	Monthly Premium
Life Insurance	$300,000.00	$32.59
Total and Permanent Disability	$300,000.00	$52.12
Miracle Cover/Major Trauma	$300,000.00	$207.82

Please note the above premiums are based upon non-smoker rates, OnePath is the source.
Policy fee and stamp duty needs to be added to these premiums.
The premiums for this particular client at age 55 would be $3,857.40 per annum. (As a level premium is based upon the age at entry, or commencement)

 

Questions frequently asked:

How do I apply for Life Insurance?

How does Life Insurance work?

Who would benefit if or when I pass away?

What are the premiums likely to cost me?

Are these premiums/contributions tax deductible?

If you would like to explore these questions further please contact the team at Sensible Insurance Solutions.