As with any insurance product, there are some terms that may be specific to your plan. An easy guide to these terms is provided below to help you understand your cover and how it works.
The period of time (normally 12 to 13 months) that the Life Insured is covered for Accidental Death only under the Funeral Insurance Benefit. The Accidental Death Period begins at the Commencement Date of the Funeral Insurance Benefit or the effective date of any increase to the Cover Amount in relation to the increased amount.
Is a person who holds an Australian Financial Services Licence (AFSL) issued by Australian Securities and Investments Commission to provide advice and sell financial products, including Life Insurance products or been authorised by another AFSL holder to provide advice and sell financial products on their behalf. A financial adviser can help you make financial decisions and plan for the future. This might include advice about budgeting, investing, super, retirement planning, estate planning, insurance and taxation.
An agreed value Income Protection policy is when the payment you would receive in the event of an eligible claim is agreed at a set amount at the start of the policy. From 31 March 2020, insurers have stopped offering agreed value Income Protection policies to consumers. If you already have an agreed value policy predating 31 March 2020, then it remains unaffected. But you would now be unable to purchase a new policy that offers an agreed value of income payment.
Also known as the nominated beneficiary. This is the person or persons named by the policy owner to receive the benefit payment in the event of a valid claim.
Means the benefit amount you apply for and which is accepted by us at the start of the Policy (the Cover Commencement Date) together with any requested increase, which we have accepted in writing, or any increases that we have automatically applied to your Policy such as Inflation Protection increases.
The amount of money your insurance product pays after a successful claim. Benefit payments are either lump sum or monthly payments, depending on the product.
Cancer Cover will provide you with a lump sum payout if you are diagnosed with cancer. You can use the payment for anything you like; to cover lost income, towards medical expenses, recuperation holiday, cleaner, taxis etc. See our Optional Illness and Injury Cover page for more details. Different companies will have different ‘cancer’ definitions and may cover different types of cancer.
A request for benefit payments after an event for which you are insured occurs.
The period of time immediately after your policy commences, during which you can cancel the policy for a full refund of any premiums paid.
When applying for insurance, there is a legal duty to take reasonable care not to make a misrepresentation to the insurer before the contract of insurance is entered into.
A misrepresentation is a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth. This duty also applies when extending or making changes to existing insurance, and reinstating insurance.
If the duty is not met
If the duty is not met, this can have serious impacts on your insurance. Your Cover could be avoided (treated as if it never existed), or its terms may be changed. This may also result in a claim being declined or a benefit being reduced.
Please note that there may be circumstances where the insurer later investigates whether the information given to it was true. For example, the insurer may do this when a claim is made.
Some events or conditions will not be covered by your insurance Policy as the event or condition may be considered too hazardous or pre-existing. If you have an exclusion on your Policy, it will mean that you will not be covered if you suffer or die from a specified excluded medical condition, or you are injured or die as a result of participating in an excluded pastime or activity. The PDS and Policy Schedule set out the exclusions and limitations that apply to your insurance Policy.
A document which provides important legal information as required by the Corporations Act 2001. It contains important information about the authorised services we offer, the remuneration received by us, our service providers, insurance representatives and our internal and external dispute resolution services.
Any costs associated with arranging a funeral including the burial/cremation, casket and flowers.
With indemnity Income Protection Insurance you must prove your income at the time of lodging a claim, rather than when you apply, so an insurer knows how much to pay you (up to 75% of your income). Further information is available on our Income Protection page.
Where you select Indexation option or inflation protection option, each year, except when you are on claim and being paid a Benefit under your Policy, your Benefit Amount will increase automatically at your Policy Anniversary to ensure that it keeps pace with rising costs in living. A corresponding increase will apply to your premium.
A member of the Insuranceline team who, on behalf of TAL Direct Pty Limited, is authorised and responsible under its Australian Financial Services Licence to:
• provide general financial product advice about Life and general insurance products; and
• deal in life and general insurance products.
If you do not pay your premiums when they are due, your policy will lapse—you cover will end and your policy will be cancelled by the insurer. You will not be entitled to a refund of any premiums paid unless your policy is within the cooling off period.
Level premiums spread the cost of your insurance more evenly over the life of your policy. With this structure, you'll be charged more in earlier years and less in later years than stepped premiums. Your age when your insurance starts will determine the level premium you pay.
For both premium stepped and level premiums, your premiums may vary if the sum insured changes, either by voluntary increases or indexation, or we change our premium rates. Changes in government charges, such as stamp duty, may also trigger premium increases. For any future increases to your sum insured, your premium for the increased portion of Cover will be based on your age when the increase occurs.
At the review date following your 65th birthday, your premium structure will change to stepped for any insurance that has not expired.
A policy designed to pay a lump sum if the life insured passes away or is diagnosed with a terminal illness. The lump sum can be used to support the bereaved family or pay off a mortgage. See our Life Insurance page for more information.
Major Illness Cover, also known as Trauma or Critical Illness insurance, provides a lump sum payment upon the diagnosis of a set list of major illnesses such or stroke or heart attack. See our Optional Illness and Injury Cover page for more information. Please note that different companies cover different illnesses with different definitions.
The payout period, also known as the benefit period, is the maximum amount of time over which an income protection insurance policy will pay you in the event of a claim e.g. a 2 year (24 month) payout period means you would continue to receive payments for a maximum of 2 years in the event you were unable to work for that entire period.
A contract of insurance between the insurer and the policy owner. It usually consists of the Policy Terms and Conditions and a Policy Schedule which is provided to the policy owner upon purchasing the policy.
Means the person who applies and is accepted for this Policy and who is so named in the Policy Schedule. The Policy Owner is the only person who may extend, vary, cancel or otherwise exercise any rights under the Policy.
Means the document we send you titled “Policy Schedule” which sets out the details of your particular Policy including who is the Policy Owner, who is the Life Insured, which benefits you have applied and been accepted for, any special terms we have agreed with you and your Cover Commencement Date and Cover Expiry Date.
The premium is the amount of money the insurer charges for the insurance they provide you. The amount you pay will depend on a range of factors including the cover, features, benefits, your risk profile and options you choose. Premium can be paid monthly, quarterly or annually.
For some policies, if you are ‘on claim’ (receiving benefit payments) the insurer will waive (ignore) the premiums that are due while you are ‘on claim’.
The law requires insurers to include a summary of the terms and conditions of an insurance product in a single document, known as the Product Disclosure Statement (PDS).
As you live your life, the likelihood you'll need to make a claim increases as you age and your lifestyle changes. A stepped premium option considers this by adjusting the premium you pay each year as you get older—increasing the premium in steps. When your adviser provides you with a quote for your insurance, they can provide you with a table of how you can expect your premium payments to rise over the years.
Some people choose stepped premiums on their policies when they're younger, to save on the premiums they pay in the early years of their Policy, or if their need for insurance is more short term. However, it's important to speak with a financial adviser to see if this strategy is right for you, to make sure you're not going to be paying more than you need to when you get older.
Means an Illness where, after having regard to the current treatment or such treatment as the Life Insured may reasonably be expected to receive, the Life Insured will not survive more than 12 months.
Two Medical Practitioners, at least one of whom is a specialist Medical Practitioner specialising in the Life Insured’s Illness, or an area related to the Illness, must certify in writing (either jointly or separately), that despite reasonable medical treatment, the Life Insured is suffering a Terminal Illness which will lead to death within 12 months of the date of certification. The Terminal Illness and certification must occur while Cover is in place.
TPD insurance pays a lump sum if you become totally and permanently disabled because of illness or Injury. Each insurer has a different definition of what it means to be totally and permanently disabled. It can cover you for either:
Your own occupation—you're unable to work again in the job you were working in before your disability. This Cover is more expensive and is usually only available outside super.
Any occupation—you're unable to ever work again in any job suited to your education, training or experience. This Cover is cheaper but has a higher threshold to claim, so it's less likely to pay out.
Activities of daily living—if you’re unable to perform at least two of the following activities of daily living: dressing, toileting, mobility and feeding.
This is simply an abbreviation of Total and Permanent Disability insurance.
For Income Protection Insurance this is how long you must be unable to work due to sickness or injury before the Income Protection Insurance payments begin to accrue e.g. with a 30 day waiting period, you would have to be unable to work for 31 days before benefits start to add up.
A package of materials that helps people prepare a will without a lawyer. Most kits include pre-printed legal forms, instructions and tips.
2023 © Insuranceline
^Offer available to Insuranceline customers who complete an application for an Insuranceline branded and distributed Life Insurance, Income Protection or Funeral Insurance policy between 1 October 2023 and 31 March 2024 (inclusive) and are issued with a policy with a commencement date prior to 00.01AM (AEST) 1st of May 2024. To be eligible policy holders must hold the policy for 4 consecutive months and pay 4 months’ premiums in full. One Gift per customer. View full terms and conditions.
**Bonus 10% more cover is calculated on the fifth anniversary from the Policy Commencement Date. Each adult life insured will have an extra 10% of the average Funeral Insurance Cover amount held during the previous five years added to their Funeral Insurance benefit. Terms and conditions apply. Refer to the PDS for more information.
#Claims paid figures relate to all Insuranceline life insurance policies in the 2021 financial reporting year (1 April2021 to 31 March 2022). All claims on Insuranceline policies are assessed against the relevant policy terms and conditions. These terms and conditions, as well an explanation of the claims process, can be found in the applicable Product Disclosure Statement. Claims are administered and settled by the insurer, TAL Life Limited.
***Insuranceline is the longest standing provider of Funeral Insurance in Australia, based on: Strategic Insight, Actuaries & Researchers. Funeral Insurance means a policy with periodic premium payments that provides a lump sum to help pay for funeral and associated expenses when you die and excludes pre-paid Funeral Plans and Funeral Bonds.
The information provided on this website is general advice only which means it does not take into account your individual needs, objectives or financial situation. For this reason, you should consider whether it is appropriate for you, and before you decide to buy or to continue to hold an insurance product, you must read the relevant Combined Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). The PDS/FSG contains important information which will help you understand the product, including what's covered and what's not covered and to decide whether it is appropriate for you. The Target Market Determination (TMD) for the relevant product, where applicable, is also available.
If you are considering cancelling a policy you already hold in order to replace it with a new policy, make sure you read the terms and conditions of both policies before you make a decision. The cover terms may be different, you may lose benefits accrued under your existing policy, and waiting periods may apply to the new policy. Changes in your personal circumstances (such as your age, health, and employment) that have occurred since your existing policy was originally taken out may also affect your new policy. As your application for a new policy may not be accepted, and some policies may be unable to be reinstated after they have been cancelled, you should consider waiting until your new policy is confirmed before you cancel any existing cover.
Promoted by Insuranceline, a trading name of TAL Direct Pty Limited (of Level 16, 363 George Street, Sydney NSW 2000) ABN 39 084 666 017 AFSL 243260. TAL Life Limited ABN 70 050 109 450 AFSL 237848 issues the life insurance benefits. St Andrew's Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649 issues the Involuntary Unemployment Cover.