What is life insurance?

Most Australians have insurance for major items such as their home, car and health. But what about your most precious asset: life? How would your loved ones cope with the financial strain if you were no longer around, and if you have a family, would your partner or spouse be able to provide a healthy and happy lifestyle for your children? Would they be able to manage the financial burden of raising children including everyday living expenses, school fees and mortgage repayments on their own?

Life insurance provides a lump-sum cash payment (benefit amount) to your loved ones at a time when they need it most. Usually, one or more beneficiaries are nominated to receive the benefit amount. This person, or people, will receive that benefit in the event of your death, or it will be paid directly to you in the event you suffer a terminal illness.

Getting life insurance is one simple thing you can do to protect those that matter to you most. You can apply for Real Life Insurance easily over the phone without the need for a medical, blood test or complicated forms, since we will ask you underwriting questions about your health and lifestyle. You can also add optional covers to your policy to ensure it meets your unique lifestyle and the needs of your family. These include:

Children’s Insurance

  • Cover your children between ages 2 and 17 years old
  • Choose a Benefit Amount from $20,000 up to $50,000 for each child insured
  • Covers a range of specified serious illnesses and injuries
  • Paid as a lump-sum if your child passes away
  • Use the Benefit Amount in any way you wish

Serious Illness Insurance

  • Available for Australian residents aged between 18 and 59 years
  • Choose a Benefit Amount from $50,000 up to a maximum of $500,000
  • Cover for the most common serious illnesses, including Cancer, Stroke, Heart Attack and Coronary Artery Bypass Surgery
  • Use the Benefit Amount in any way you wish

Total & Permanent Disability Insurance

  • Choose a Benefit Amount between $50,000 and $1 million (depending on your age)
  • Pays your cover amount in full if you become permanently disabled or can’t work due to a permanent illness or injury
  • Use the payout to cover costs of treatment, rehabilitation or for anything else you may need

You might have just taken out your first mortgage, be expecting your first child – or your third – or you may have simply started to think about what you would do if something happened to you or someone you love. Maybe it’s time to protect who matters most in your life.

If someone depends on you financially, you should consider life insurance. If you were no longer there to provide for your family and loved ones, think about how that would impact them financially. The lump-sum benefit payout your family could receive can be used any way they wish. This could include helping them manage major household debts such as the mortgage, car repayments or education costs for your children. Which means your family would still be able to live the life you wanted for them.

In the unfortunate event you suffer a terminal illness, the lump-sum payout could help you maintain your quality of life and continue to provide for your family.

You can apply for a single plan for yourself or a joint plan to cover you and your partner. Once your policy is active, you can relax knowing those most precious to you are financially protected.

You can apply for Real Life Insurance if you are an Australian resident aged between 18 and 64.

What is Real Term Life Cover?

Real Term Life Cover is a fixed-term life insurance policy that expires after a period of 20 years or when you turn 85 (whichever comes first). It’s a simple and easy way to protect your loved ones as you can apply in a single call, we just ask some simple health questions over the phone.

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

Please note, if your cover ends before your Life Insurance Benefit expires, you won’t be eligible for the Final Expenses Benefit or the guaranteed cash payout.

How is term life cover different to full life cover?

Real Term Life Cover has a few differences compared to Real Family Life Cover. Each of these types of policies have their own benefits so you should always consider your personal needs when deciding which one is right is for you.

Here are some common differences you may notice between Real Term Life Cover and Real Family Life Cover:

Real Family Life Cover Real Term Life Cover
Term of Cover No expiry Expires after 20 years or when you turn 85
(whichever comes first)
Benefit amount $100,000 - $1 million
(depending on age)
$10,000 - $100,000
Eligible age to apply 18 – 64 18 – 79
100% benefit paid out in advance if you’re diagnosed with a terminal illness Yes Yes
After holding your policy for 12 months
Cover for Death Yes
Except for as a result of self inflicted injury in the first 13 months
Yes
Cover for Accidental Death only in the first 12 months, then cover for death by any cause thereafter
Triple Benefit Amount if death is accidental No Yes
Advanced funeral benefit while your claim is being assessed Yes
$10,000 advance
Yes
20% of the Life Insurance Benefit
Optional cover for TPD or Serious Illness Yes No
No medicals or blood tests required to apply Yes Yes

Read more about differences between Real Family Life Cover and Real Term Life Cover.

Get up to $1 million cover (depending on age) with Real Family Life Cover

Do I need life insurance?

You may be asking yourself, “Do I need life insurance at all?” But it might be better to ask, “How can I provide for my loved ones if things don’t go according to plan, or the unthinkable happens to me?”

At every stage of life, it’s important to recognise that unexpected things could happen to you and your family, no matter what you do to minimise the risks.

Many people only start to consider life insurance at pivotal moments in their lives such as buying a house, starting a family, or after the death of someone close. That’s understandable, but there can be advantages to taking out cover earlier in life. You’re more likely to be accepted for life insurance when you’re young and healthy, and once you’re covered you can usually keep that cover for as long as you need it even if there are changes to your health.

Life insurance is an important financial safety net, particularly if you have loved ones who rely on you to provide for them. You’d never want to see them struggle – especially if something were to happen to you.

According to the Family Protection survey we conducted in April 2017, 59% of Australian parents say dying without having life insurance cover in place would be a financial burden on their family.

If you have dependants - including a spouse and children - who rely on your income, then you should consider life insurance. And if you have any debts, like a mortgage, that would be difficult for your next of kin to pay, it’s even more important.

Whether you are a single or double-income family, if the loss of that income would impact your family and lifestyle, life insurance can help ensure your family’s financial future remains secure.

How does life insurance work?

Life insurance works like many other insurance policies, where the policy holder (usually also the person insured) pays a premium to the insurer to cover them for certain events. In the case of Real Life Insurance, the covered events include being diagnosed with a terminal illness or death.

When getting a life insurance policy, the first thing you need to decide is what type of plan you want.

  • Single plan

    When you take out a single plan – that is, you are the only person insured on the policy – the benefit amount will be paid to your nominated beneficiary (if available) or to your estate. If you are diagnosed with a terminal illness, you, as the person insured under the policy, will be the beneficiary of the benefit amount.

  • Joint Plan

    If you also want to insure your spouse, partner, or de facto, and have both of you nominated on the same policy, with Real Life Insurance you have the option to set up a joint plan. One of the best features of the joint plan is its flexibility – you and your partner can be insured on the one policy, but you can still select your individual benefit amounts. That’s great news for you because you can adjust each benefit amount to suit your own needs.

Did you know? When you are married or have a partner you can take out two individual single plans if that suits your needs better than a joint plan.

Applying for cover: Need-to-knows

When you apply for cover, you select the benefit amount that suits your needs, and add on any optional benefits to tailor the cover to your circumstances. Real Insurance will ask a series of underwriting questions about your health and lifestyle, to help keep premiums lower.

But I am young, fit, healthy and single. Why would I need life insurance?

It’s so easy to feel invincible when you’re young, but that doesn’t stop the unexpected from happening. Even if you recognise life’s unpredictability, you may think you can put off life insurance you’re a bit older – but financial security is important for everyone, no matter how old you are.

Life insurance is more than just about what happens when you die. You can also take out cover in the event you become permanently disabled or suffer a serious illness. Having life insurance is one way to ensure that should the unthinkable occur, you already have in place some financial assistance for you and your loved ones – whether that’s your partner, parents, siblings, children or other family members – who may need to care for you.

Not only that, but you’re more likely to be fully approved for cover when you’re young and healthy. You may also be eligible for a higher benefit amount if you take out cover at a younger age.

Another plus is that with Real Life Insurance, your policy is guaranteed renewable. Find out more on life insurance for young and single people.

What about my partner and my family?

While your partner can be covered under a joint plan, there are also options to ensure your family is covered. A child with a serious illness or injury impacts not just your child, but your entire family – emotionally, physically and financially. This is where a life insurance policy with optional Children’s Insurance added can assist you and your family.

If you are the parent or legal guardian of a child aged between 2 and 17 who is also an Australian resident, you can apply for this optional cover.

Children’s Insurance provides a benefit in the event your child suffers a defined serious illness or injury, or passes away.

If your child does suddenly become ill or suffers a major injury, the last thing you will be thinking about is work, money or even what will happen the next day. You may have to take time off work, call in family and friends to help with running your household or minding your other children. But soon you will have to think about what comes next, and how the next set of bills will be paid.

While a Real Life Insurance policy with Children’s Insurance won’t change your child’s circumstances, it may be able to significantly ease your financial burden.

Read more about life insurance for young families and life insurance for mature/established families.

For more information on our optional Children's Insurance, download our Life Insurance Product Disclosure Statement or call 1300 377 325 now.

It’s easy to get a Life Insurance quote

What if I become seriously ill, but the illness is not terminal?

Thankfully, not all serious illnesses are terminal. But they can still impact you and your family in ways you may not expect, especially when it comes to finances.

With Real Life Insurance you can add Serious Illness Insurance as an optional benefit to your cover. This insurance is designed to help smooth the road to recovery by paying a benefit if you are diagnosed with one of the following Serious Illnesses, as defined in the PDS - Heart Attack, Cancer, Stroke or Coronary Artery Bypass Surgery.

If you are the main breadwinner, the financial impact of not working due to serious illness is considerable, but what if you are your family’s main caregiver? If you cannot rely on family or friends for an extended period of time, you may have to make alternative arrangements for your family’s care and home maintenance.

While you focus on getting better and recovering from your illness, Serious Illness Insurance may ease at least one of your worries and help ensure your family is being provided for financially.

You can apply if you are aged between 18 and 59, and are an Australian resident.

For more information about optional Serious Illness Insurance, download our Real Life Insurance Product Disclosure Statement or call 1300 377 325 now.

What if I become permanently disabled?

Sometimes a serious accident or even an illness can lead to total and permanent disability. It would be devastating to be told that you will never again be able to do paid work, maintain your household, or take care of your family the way you used to. But with the right optional benefits on your Real Life Insurance policy, you can at least know your family will be able to maintain their lifestyle should the unexpected happen.

Total & Permanent Disability Insurance provides a benefit to you in the event that that you become totally and permanently disabled. This optional cover is different to Serious Illness Insurance because it covers you if you can’t work in any occupation due to a permanent illness or injury, suffer the loss of limbs or sight, or become totally dependent on others for your care.

Learn more about what TPD insurance is.

You can apply for cover if you are aged between 18 and 59 and are an Australian resident.

For more information on our optional Total & Permanent Disability Insurance, download our Life Insurance Product Disclosure Statement or call 1300 377 325 now.

Can I get life insurance without a medical?

The Real Insurance promise is to make our insurance simple and straightforward so it’s easy to understand and get cover. That’s why applying for Real Life Insurance is so simple. You can apply quickly and easily over the phone, without going through a lengthy doctor’s examination or uncomfortable blood tests.

Some of the details you will be asked to provide include:

  • your age, weight and height
  • whether you smoke
  • how much alcohol you drink, and how often
  • whether you have suffered from a range of illnesses or injuries in the past, like cancer or heart disease
  • whether you have a history of illness in your family.

When you apply for cover with Real Insurance, it’s a quick and easy process so you can get back to doing what you love best: living your life.

What if you require me to provide more information?

If you call to apply for Real Life Insurance and further information is required, you’ll automatically be provided with free interim Accidental Death Cover for up to 30 days if we need extra time to assess your application. This covers you in the event you die as a direct result of an accident before your application is finalised.

Should the unexpected happen and your claim for accidental death is approved, the payout is the same as your Real Life Insurance benefit amount that you have applied for (subject to the maximum benefit amount applicable to your age).

This interim cover is provided at no additional cost to you and is subject to specific terms explained in the Product Disclosure Statement.

What is the difference between life insurance, funeral insurance and income protection insurance?

There are a number of insurance products that provide cover for illness, injury and death, so how does life insurance differ from those?

Life insurance

  • Life insurance is designed to help your family manage regular expenses such as the mortgage, car repayments, school or university fees, as well as the day-to-day costs of raising a family, should you pass away or suffer a terminal illness. With Real Life Insurance, the benefit amount can be from $100,000 up to $1 million depending on your age, and you can select the level of cover that suits your family’s needs.
  • You can choose from a range of optional benefits for greater protection for you and your family.

Funeral insurance

  • Funeral insurance can ease the burden on your family by helping to cover immediate funeral expenses and associated costs, as well as any other final costs you may leave behind.
  • Your family will receive a quick cash payout when you die – usually within one business day of receiving all completed documents.
  • With Real Funeral Insurance, you can choose your level of cover up to $15,000, which triples, up to $45,000 if death is accidental.
  • Acceptance is guaranteed for all Australian residents aged 18 to 79, with no medical or blood test required.

Income protection insurance

  • This cover is designed to help secure your income.
  • If you are unable to work for an extended period due to illness or injury, you can rest easy knowing that expenses such as your mortgage, regular bills and even your day-to-day living expenses can be covered. This cover is provided even if your illness or injury is not work-related.
  • You select your waiting period and benefit. With Real Income Protection Insurance, this can be up to 75% of your monthly pre-tax income, up to $10,000 a month.
  • All working Australian residents aged 18 to 59 can apply for cover.
  • Income protection insurance premiums are generally tax deductible.

What are the benefits of life insurance?

Even though your family has its own unique needs, there are many benefits of getting Real Life Insurance including:

  • Peace of mind knowing your family will be taken care of should the worst happen.
  • In most cases, benefits paid are tax free.
  • 100% of the benefit is paid to you in the event of terminal illness.
  • $10,000 advance funeral payout to assist with funeral costs.
  • Your cover level will not decrease, regardless of changes to your health.
  • You can add optional benefits to your policy for greater protection.
Life Insurance Code of Practice

Subscriber of the Life Insurance Code of Practice

To make sure you receive the highest standard of service when taking out cover, we comply with the Life Insurance Code of Practice.

Read more

Who is the beneficiary of my life insurance policy?

One of the most common questions about Life Insurance is:

“Who gets my life insurance when I die?”

If you are diagnosed with a terminal illness, you, not your beneficiary, will be paid your entire benefit amount as one lump-sum payment. This will mean you can spend time making memories with loved ones, instead of worrying about finances.

You can nominate whoever you want to be the beneficiary and receive the benefit amount when you pass away.

To nominate a beneficiary or beneficiaries, you need to complete a Nomination of Beneficiaries Form (also available in the Product Disclosure Statement) and return it to Real Insurance.

How does life insurance work when I’m no longer around?

You will need to ensure your family and any other beneficiaries are aware of your policy before you pass away. You should store your policy information in a safe place, and also include instructions in your will about how the claim can be made, and how it should be distributed.

To ensure the claim for your Real Life Insurance benefit runs as smoothly as possible, it’s important to:

  • Keep your premiums paid and up to date.
  • Ensure your Nomination of Beneficiaries Form is current and completed in full.
  • Let Real Insurance know about any recent changes – or upcoming changes – to your personal circumstances.
  • Ensure you have a current legal will.
  • Make sure your family and other beneficiaries knows where your insurance documents are kept, and how to access them.
  • Tell your family what will be required of them. This will ensure the claim on your policy will be processed as quickly as possible.

Should the time come and a claim needs to be made on your Real Life Insurance policy, your family or other beneficiaries can email or speak with a dedicated claims agent who will help guide everyone through the claims process.

You can learn more about how to make a claim on Real Life Insurance.

Some claims may need to be handled differently, but for the most part it will involve the following:

  • You (if claiming for a serious or terminal illness) or your family member should notify Real Insurance via phone or email that you will be lodging a claim.
  • A claims agent will be assigned to you and will contact you to take you through the claims process.
  • You will need to complete all necessary forms and documents. You can find a list of the forms you may be required to complete here. The forms will need to be sent to Real Insurance.
  • Once all the completed forms are received, your claim will be assessed and paid, subject to approval.

Can I cash in or sell my life insurance policy?

Not that long ago, you could sell your life insurance policy for a percentage, usually around 15%, of the policy value.3 These companies would buy your policy, continue paying the premiums until the seller passed away and then cash them in.

This service is no longer available in Australia for term life insurance policies.

Can I change my life insurance policy?

Yes, there are many reasons why you may want to change some of the details of your cover. Depending on your policy, you may be able to change your level of cover or options attached to the policy, or you may be issued a new policy in order to make the changes.

It’s always a good idea to regularly review your insurance policy. Some things you may want to consider are:

  • The level of cover: Is the benefit amount adequate for what you and your family need?
  • Your financial circumstances: Have your circumstances changed such that you no longer need the cover? As you age and your financial situation improves you may find it appropriate to revisit the original needs you had. Alternatively, a sudden change to your circumstances may require you to consider taking out additional cover.
  • Optional cover: Is the policy relevant to your family’s current needs? Do you have the right optional cover for your family’s circumstances?
  • Lifestyle changes: Have you quit smoking or improved your health in some way?
  • Beneficiaries: Have you nominated your beneficiaries?

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