At Insuranceline, we want you to understand and be comfortable with your cover. That’s why we explain everything in plain English, and keep the details of our plans as clear and simple as possible. However, we know everyone’s situation is different, and that you may still have questions from time to time. So here are the answers to our customers’ most commonly asked questions below. If you don’t find the information you need here, simply give us a call on 13 77 87.
Here are the answers to your Frequently Asked Questions
Your personal insurance premiums will generally be tax deductible if the payout is to supplement or replace lost income. If this is the case, it also means that the payout will be tax assessable, like your regular income would be. Generally speaking, Income Protection is a personal insurance product for which premiums will be tax deductible. Please note that there may be different rules relating to insurance premiums that are business related and you should check the Product Disclosure Statement for the different insurance products that you have.
The price of life insurance is usually calculated based on the amount of cover you choose and your age. Generally speaking, the younger you are, the cheaper it will be… and the higher the amount of cover you select, the more expensive it will be.
Yes, you can cancel your Insuranceline policy at any time either over the phone or in writing. If you cancel during the first 30 days, you will receive a refund of any premiums you have paid. After this point, no refunds will be given as your policy is insurance, not a savings plan and does not have a cash value.
• Lifewise is an initiative of the Australian life insurance industry aimed at addressing the issue of underinsurance. You can find information ranging from understanding life insurance to helpful tools (such as an insurance calculator to help you work out the type and amount of insurance you might need) to taking the next step with “Who can I talk to?”.
• The Australian Financial Complaints Authority (AFCA) provides fair and independent financial services complaint resolution that is free to consumers.
• The Australian Securities & Investments Commission (ASIC) is a Commonwealth Government body which regulates the financial services industry to ensure that Australia’s financial markets are fair, transparent and consumers have access to information to help you make informed finacial decisions.
• The Australian Prudential Regulation Authority (APRA) is the regulator of the Australian financial services industry (including banks, credit unions, insurance companies and the superannuation industry) with the aim of protecting the financial well-being of the Australian community.
Insurance is a way to safeguard yourself (and your family) against the unknown. The amount of insurance you need will depend on the type of insurance and it will be different for everybody. For example, you insure your car or your home contents for the amount that it would cost to replace whatever was damaged or stolen. With life insurance, you should consider things like what debts you’d like to pay off and how much you’d like to leave your family to meet their future financial needs.
The amount of life insurance you need will depend on your personal situation. Here are some questions to consider when working out the right amount for you:
• Do you have a mortgage or other debts?
• Do you have a spouse or partner? If so, are they working and could they support themselves financially?
• Do you have any kids or other people who depend on you to look after them?
• What would be the impact to your day-to-day lifestyle if you didn’t have your income?
• For how long would you like your family to live on the payout?
• How much could rehabilitation cost if you needed it?
The amount of life insurance you may need will generally depend on the amount of debt you have (eg. mortgage) and whether there are other people that rely on you and your income. A good way to think of it is – how much will your family need to live life to a similar standard if you were no longer able to provide for them?
Most Australians have some form of life insurance through their superannuation. The amount of cover provided is unlikely to be based on your individual current and future financial obligations, therefore, make sure you check this carefully before deciding whether it is enough. You may also need to consider whether you are able to take your insurance with you if you leave your employer.
Workers’ Compensation will only cover you if your injury happens in the workplace or your sickness can be directly linked to your employment. You will not be given any assistance for time off work resulting from any sickness or injury sustained outside the workplace.
The term life insurance can refer to a category of insurance as well as a specific product. Within the life insurance category, there are a number of different types of products:
Term (commonly referred to as Life Insurance)
This insurance will pay out a sum of money (usually as a tax-free lump sum) when an insured person passes away. It is also common for the payout to be given if the person is diagnosed with a terminal illness.
This is a type of term insurance that is specifically designed to cover the costs of a funeral.
This insurance provides the insured person with an income (usually as monthly payments) if they are unable to work for the short-to-medium term due to an injury or sickness.
This insurance will pay out a sum of money (usually a tax-free lump sum) when the insured person suffers from a specific medical event covered by the policy, such as heart attack, stroke or cancer.
Total and Permanent Disability (TPD)
This insurance will pay out a sum of money (usually a tax-free lump sum) when the insured person suffers from a permanent disability which prevents them from working in their current occupation or an occupation they have trained or studied for. Please note that there are different definitions relating to TPD insurance, so it’s important to understand your particular insurer’s definition.
It is very important that you give all the necessary correct information when you take out your policy. At claim time, we will access your medical records. If you haven’t given complete and accurate answers to the questions when you applied for cover, there is a risk your claim will not be paid. There is also a chance the insurer can treat your policy as if it never existed if the information you leave out would’ve meant you would not have been accepted for cover in the first place.
An example: At the time of applying for your life insurance policy, you forget to tell that you had a minor heart condition 2 years earlier. You unfortunately pass away from a heart attack. The insurer may be entitled to decline your family’s claim on the grounds you didn’t disclose in your application for cover information relevant to the insurer’s decision whether or not to offer you cover and the terms that would apply.
Indexation is a way to help future-proof your insurance payout. Every year, as the cost of goods and services increases, your amount of cover will increase by the same, or similar, proportion. This will ensure that you are not left short in the future when you, or your family, need to pay expenses from your payout.
When a person dies, somebody has to deal with the assets and liabilities of the person’s estate. Probate is the process of proving and registering in the Supreme Court the last Will of a deceased person. A grant of probate is the legal authority that means the Will is valid and allows the executor (the person dealing with the estate) to administer the estate and distribute assets to the beneficiaries named in the Will.
Where a person dies without a Will, the law determines who will receive the estate. In this instance, letters of administration need to be obtained from the Supreme Court, which will allow the assets and liabilities of the estate to be dealt with. Letters of administration authorise a person (called an administrator) to administer the deceased's estate and distribute assets.
Insuranceline has been offering simple life insurance products direct to consumers (ie. without the need for an adviser) since the launch of Insuranceline’s Funeral Plan in 1999. Today, Insuranceline has a range of life insurance, income protection and trauma products on offer.
Underwriting is a term used to describe the process of assessing insurance risk prior to issuing a policy. It usually takes the form of questions about your occupation, medical history and current pasttimes/activities. Underwriting is designed to ensure the premiums and cover terms for your insurance plan are appropriate for your own medical situation, lifestyle, occupation and pursuits.
Dai-ichi Life is the third largest life insurer in Japan and the owner of TAL.
TAL is the insurer for Insuranceline life insurance products. TAL (formally known as TOWER Australia) provides close to 2.5 million Australians with life insurance.