Glossary of Terms

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.

  • Accidental Death Period

    The length of time during which you can only receive a benefit payment if your death is the result of an accident.
  • Adviser (Financial Adviser)

    Authorised by the Australian Securities and Investments Commission to provide advice and sell financial products, including life insurance products.
  • Agreed Value Policy

    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. This is particularly useful for people with varying salaries, e.g. those who are self-employed.
  • Beneficiary

    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.

  • Benefit Amount

    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.

  • Benefit payment

    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

    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.

  • Claim

    A request for benefit payments after an event for which you are insured occurs.
  • Cooling Off Period

    The period of time immediately after your policy commences, during which you can cancel the policy for a full refund of any premiums paid.
  • Duty of Disclosure

    The duty of disclosure requires you to answer all of the insurer’s questions honestly and completely when you apply for a life insurance product. If you do not answer the questions honestly and completely your claim may be reduced or refused or your policy may be cancelled.
  • Exclusions

    Some events or conditions will not be covered by your insurance policy as the event may be considered too hazardous (for example – some extreme sports) or the condition inevitable (for example – a pre-existing medical condition). Excluding these higher risk events and conditions helps to keep premiums as low as possible.
  • Final Expenses Plan

    The Final Expenses Plan has been specifically developed for the needs of over 50s. With cover up to $30,000, the money can be used to take care of funeral expenses, help cover any small loans or even leave a parting gift for your kids or grandkids. See our Final Expenses page for more details.
  • Financial Services Guide

    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.
  • Funeral Expense

    Any costs associated with arranging a funeral including the burial/cremation, casket and flowers.
  • Income Protection

    An insurance policy that can pay you monthly if you can’t work because you’re injured or suffering from illness. See our Income Protection page for more details.
  • Indemnity

    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.
  • Indexation

    To ensure your cover amount is not eroded by the rising costs of living. You can select the indexation option so your cover amount automatically increases every year. A corresponding increase will apply to your premium.
  • Insurance Representative

    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.

  • Lapse

    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 Premium

    A type of Life Insurance premium determined by your age at the start of the policy and the premium will not increase each year just because you get older. Generally speaking, the younger you are, the lower the premium.
  • Life Insurance

    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

    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.

  • Payout Period

    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.
  • Pet Insurance Plan

    Pet insurance helps towards covering costs of vet’s bills as a result of certain pet illnesses or injuries. See our Pet Health Plan page for more information.
  • Policy Document

    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.
  • Policy Owner

    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.

  • Policy Schedule

    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.

  • Premium

    The monthly, quarterly or annual fee for the insurance policy.
  • Premium Waiver

    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’.
  • Product Disclosure Statement (PDS)

    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).
  • Qualifying Period

    How long you need to hold your policy for before you can claim for certain events/conditions e.g. InsuranceLine’s Funeral Plan has a 12 month qualifying period for death from natural causes.
  • Stepped Premium

    Premiums that are recalculated at each policy anniversary. Stepped premium rates usually go up each year according to risk factors such as age.
  • Terminal Illness

    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.
  • Total and Permanent Disability (TPD)

    Insurance that pays a lump sum in the event that you are unable to work and likely to never return to work again.
  • TPD Insurance

    This is simply an abbreviation of Total and Permanent Disability insurance.
  • Trauma Insurance

    Insurance for specific medical events such as cancer and heart attacks. Also known Major Illness cover or Critical Illness cover.
  • Waiting Period

    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.
  • Will Kit

    A package of materials that helps people prepare a will without a lawyer. Most kits include pre-printed legal forms, instructions and tips.