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:
- 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
- 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
- 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.
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
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
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.
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.
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 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 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.
- 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.