Term Life Cover Q&A

Important note:

The following questions are to be used as a reference guide only and do not substitute or replace your insurance contract, the PDS or Certificate of Insurance.


What is Real Term Life Cover?

Real Term Life Cover is a type of fixed term insurance policy that expires after 20 years or when you turn 85 (whichever comes first). This can be a great way to make sure you and your loved ones are financially protected and could continue their current lifestyle should you pass away or suffer a terminal illness (after holding your policy for 12 months).

Request a quote for Real Term Life Cover.

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How much Real Term Life Cover should I get?

With Real Term Life Cover, you can tailor the Benefit Amount to suit your needs. The minimum benefit is $10,000, and you can select your chosen benefit in increments of $5,000, up to the maximum of $100,000.

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Is my Real Term Life Cover payout taxable?

It’s always best to seek the assistance of a tax expert for advice, however usually any personal life insurance benefits that you or your family receive aren’t counted as taxable income, and therefore will not be taxed. This means that any money you or your loved ones receive can be put towards your expenses or bills if you were to pass away or suffer a terminal illness.

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Are my Real Term Life Cover premiums tax deductible?

Generally, life insurance premiums are not tax deductible. However, you should be aware that this may change, and may not apply to your individual circumstances. Therefore, we recommend you seek qualified professional advice to fully understand any tax implications.

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Can I get money from my Real Term Life Cover policy?

Real Term Life Cover pays a Benefit Amount to your beneficiaries if you pass away or suffer a terminal illness during the cover period (terminal illness is subject to a 12-month waiting period). Your policy doesn’t have a cash value and cannot be redeemed for cash.

However, Real Term Life Cover comes with a guaranteed cash payout when your cover expires and the Life Insurance Benefit ends. This means:

  • Your protection continues for another 10 years with our Final Expenses Benefit. This benefit is equal to 20% of your Life Insurance Benefit and is at no additional cost to you
  • After this time (or if you pass away during this time) you or your family will receive your Final Expenses Benefit in full
  • Or for greater flexibility, at any time during this 10-year period, you can choose to cash out half of the Final Expenses Benefit and end your Policy

Note: If your cover ends prior to the expiry of your Life Insurance Benefit, you will not be eligible for the Final Expenses Benefit or the guaranteed cash payout.

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How do I make a Real Term Life Cover claim?

With Real Insurance, you get your own Australia-based personal claims specialist, who will help if you or your family ever need to make a claim. All you need to do is follow the steps on the claims page to get started. You will usually be required to provide us with documentation, which will depend on the type of claim you are making, and your circumstances. Your claims specialist will guide you through this process.

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What is the difference between Real Family Life Cover and Real Term Life Cover?

Real Family Life Cover is a type of life insurance which covers you for as long as you live (or until you decide to cancel). However, Real Term Life Cover expires after 20 years or when you reach age 85 (whichever comes first).

You may also notice some other differences between these policies. Real Family Life Cover has a maximum Benefit Amount of $1 million (depending on your age), while the maximum Benefit Amount with Real Term Life Cover is $100,000. However, it may be slightly easier to apply for Real Term Life Cover – all you need to do is answer a few simple questions about your general health to apply.

Please note that Real Family Life Cover and Real Term Life Cover are both direct life insurance policies; this means you can purchase these policies on your own behalf. Direct life insurance policies are different from group life insurance, which is a form of cover provided by your employer or superannuation fund.

You can find out more about the differences between full life insurance and term life insurance here.

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Can I extend a Real Term Life Cover Policy?

Your Real Term Life Cover Policy expires after 20 years, or when you turn 85 (whichever comes first). Plus, Real Term Life Cover comes with a guaranteed cash payout when your cover expires and the Life Insurance Benefit ends. This means:

  • Your protection continues for another 10 years with our Final Expenses Benefit. This benefit is equal to 20% of your Life Insurance Benefit and is at no additional cost to you
  • After this time (or if you pass away during this time) you or your family will receive your Final Expenses Benefit in full
  • Or for greater flexibility, at any time during this 10-year period, you can choose to cash out half of the Final Expenses Benefit and end your Policy

Note: If your cover ends prior to the expiry of your Life Insurance Benefit, you will not be eligible for the Final Expenses Benefit or the guaranteed cash payout.

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Does Real Term Life Cover expire at a certain age?

Yes, Real Term Life Cover ends after 20 years or when you turn 85 (whichever comes first).

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Do you need a medical exam for Real Term Life Cover?

No, you don’t. With Real Term Life Cover, it’s quick and easy to apply over the phone. You won’t need a medical exam or blood test, and there are no complicated forms to fill out. We just ask you some simple health questions over the phone to help us do a quick assessment of your application. After this is approved, you are instantly covered.

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Can I cancel my Real Term Life Cover?

Yes, you can cancel your Real Term Life Cover Policy and if this is done within the first 30 days of it starting (and you haven’t made a claim) you will get a full refund of any premiums you have paid. However, if you cancel your cover after 30 days, you won’t get anything back unless you’ve chosen a yearly payment option, in which case you will get back the unused portion of your premium.

If you want to end your Policy, all you have to do is phone Real Insurance on 1300 224 386 from Monday to Friday between 8am and 8pm (AEST). Or, you can send us a signed letter telling us your full name, Policy number and advising us that you want to end your Policy, and we will do the rest.

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What happens when my Real Term Life Cover Policy matures?

Real Term Life Cover is designed to provide a financial benefit to your loved ones if you passed away or were diagnosed with a terminal illness during a specified period of time, called a term. Once your Policy matures, reaches the end of its term, or you reach a certain age cover ceases. This means that your Real Term Life Cover Policy expires, and your coverage stops.

However, Real Term Life Cover comes with a guaranteed cash payout when your cover expires and the Life Insurance Benefit ends. This means:

  • Your protection continues for another 10 years with our Final Expenses Benefit. This benefit is equal to 20% of your Life Insurance Benefit and is at no additional cost to you
  • After this time (or if you pass away during this time) you or your family will receive your Final Expenses Benefit in full
  • Or for greater flexibility, at any time during this 10-year period, you can choose to cash out half of the Final Expenses Benefit and end your Policy

Note: If your cover ends prior to the expiry of your Life Insurance Benefit, you will not be eligible for the Final Expenses Benefit or the guaranteed cash payout.

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