What Does Life Insurance Cover?by Deepa
What Does Life Insurance Cover?
You probably have heard of the term life insurance policy many times, whether it is from family and friends, or even insurance agents. You may even be considering taking out a policy for yourself – but do you really know what a life insurance policy covers?
In Australia, the most common type of life insurance cover is known as Term Life insurance. The coverage for a term life insurance policy is set for a specific period, usually up to the age of 99 years old. This simply means that should you pass away within the stipulated agreement period of your policy, your listed beneficiaries will receive the payout as specified by you.
However, do note that almost all life insurance policies may not cover the following, especially within the first one to two years of the policy:
- Self-inflicted harm
- Death due to war
You may also find that at the start of your policy, one of our insurance agents will inform you that some causes of death may be excluded from your policy. This decision is made is made by the insurance provider after a thorough assessment of your existing health and lifestyle and will be clearly stated in your policy agreement.
What Is Included In My Life Insurance Policy Coverage?
Some insurance companies may include additional personal insurance cover, such as the Total and Permanent Disability (TPD) or Income Protection (IP) insurance policies, under your life insurance cover. It is entirely up to you to choose the type of cover based on how it may benefit you and your loved ones in the future in the case of an illness, accident or death.
Generally, you should look into being covered for certain expenses after your death to ease the burden on your loved ones. As such, you should try and ensure that your policy covers some of the following:
- Debts, such as mortgages, loans, credit card payments, etc.
- Medical expenses, especially if your death was due to an illness
- Funeral expenses
- Children’s education
- Maintaining your dependents
Our team at Life and Insurance would be glad to advise you on the best policy for you and your loved ones based on your personal circumstances – all via a convenient phone conversation. Simply let us know what is important to you and one of our advisers will provide advice on the different types of cover that best your situation! Get a free life insurance comparison and quote today and take advantage of our 10% price-beat guarantee for a genuine like-for-like quote.