Life Insurance Cover

Get a tailored made life insurance cover to protect your family

Last updated on May 4th, 2022 at 03:21 pm by Bill Tsouvalas

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Life insurance that is simple and affordable

Over 5.7 million Australian households have an average debt of $128,000. What would happen if you suddenly passed away and couldn’t take care of your family?

It’s an unpleasant truth, but most of us will experience some kind of insurance-covered event in our lifetime. 81% of 50,000 transport accidents happened to people of working age. One third of women and a quarter of men will suffer from cancer at some stage in their lives.

Right life insurance cover

Savvy finds the best prices on life insurance to hundreds of Australians. Our insurance professionals help tailor a premium catering to your budget and circumstances. We can help determine how much cover you require and can find insurance products that guarantee cash back amounts each year. We can also find premiums that deliver lump sum payments and funeral cost cover.

Why choose Savvy?

Get answers to life insurance questions

Is there more than one type of life insurance?

Yes – life insurance is an umbrella term for many payments in the event of death, permanent injury or loss of income. Life insurance can mean, among other things:

  • Insurance in the event of death
  • Insurance in the event of total and permanent injury
  • Insurance against sudden unemployment or redundancy
  • Insurance against prolonged illness, making you unable to work

All of these may have different names such as Total Permanent Disability insurance, trauma insurance, and income protection insurance. All of these refer to some type of life insurance.

My super fund gives me life insurance. Why should I buy it here?

One in three Australians do not have adequate life insurance cover, and many super funds only provide basic insurance in the event of death. Buying your own life insurance ensures you and your family are 100% covered.

Who needs life insurance?

It’s a common misconception only young families need life insurance. The fact is, singles, couples without children, retirees, single parents, parents of adult children, small business owners and sole traders should have some kind of insurance to protect them against the inability to earn an income.

What is total permanent disability insurance?

Total permanent disability insurance is cover for you or your family in the event you are disabled and unable to work at your job again.

What is trauma insurance?

Trauma insurance covers you and your family in the event of grave injury that prevents you from working for an extended period.

What is income protection insurance?

Income protection insurance gives you an allowance in the event you are made redundant or suddenly unemployed. This replaces up to 80% of your original salary in the form of insurance payments (in most cases).

How much coverage do I need?

This is up to you and your lifestyle. A life insurance premium should provide enough to pay off outstanding debts such as a mortgage or car loans, and provide for children who cannot work for themselves.

I am a NZ citizen/Australian permanent resident. Can I apply?

Yes, Citizens of New Zealand and Australian permanent residents can apply for life insurance coverage.

What is a beneficiary?

A beneficiary or beneficiaries are the people who receive a claim in the event of death, permanent disability or trauma.

What is a cooling off period?

The time allowed by law to reconsider your life insurance purchase. If you feel you made a decision that was not right, you have up to 14 days to modify or cancel your premium.

Do I need to provide medical certificates?

Some premiums may require medical certification. Ask your consultant if you require a medical certificate to apply for certain premiums.

Making life insurance easier

How much life insurance is enough?

Many life insurance premiums come with levels of lump sum coverage. It’s not uncommon to take out premiums for $1 million in the event of a sudden death. But though it seems high, is it enough? A life insurance premium should cover your outstanding mortgage debt; any other asset debts; education for children; giving your family security if you were the sole breadwinner. Though high sums may seem adequate on the surface, it is worth sitting down with a financial professional to work out what level of coverage will provide for your loved ones in a time of great stress.

What is the life insurance “gap?”

Many insurance commentators have noted a huge gap in the life insurance coverage of average Australians. According to the Financial Services Council, Australians have a death and disability underinsurance gap of over $1.1 trillion. They go on to say that only one in five Australians have adequate death and disability cover. This means if you are underinsured, the “gap” between paying off your immediate debts and what you get in payouts is out of your pocket. That’s why checking your coverage to make sure it’s enough is crucial when reviewing your life insurance.

Lump sums and periodic payments

Not all life insurance premiums are the same; many give you options for lump sums or periodic payments. A lump sum is the entire premium paid at once. This is most common in life insurance or total permanent disability premiums. Periodic payments are more common in circumstances that may be subject to change. For example, you may need income protection insurance if you find yourself unemployed. If you then go on to find work, payments cease as you earn a regular income. The same may apply to trauma insurance. Lump sums are critical when you need to settle an entire debt quickly, such as a mortgage or other asset that is under loan. Funeral cover also pays a lump sum to cover funeral and other pressing bereavement costs.

Life insurance isn’t just “death cover”

According to Financial Services Council, three in four Australians believe life insurance is just “death cover” – a premium paid to family members in the event of a sudden and unexpected death. However, life insurance comprises many different types of coverage that can ease suffering and help your family in a time of need. Life insurance can also mean Total Permanent Disability insurance, which covers you in the event you are injured and cannot work again. Trauma insurance is similar, in that it covers you if you sustain severe injuries and cannot work for an extended period. Income protection insurance gives you access to a payout – usually 70%-80% of your regular salary – if you find yourself made redundant or suddenly unemployed.