Life Insurance Uncovered

When considering life insurance and disability insurance cover there are generally three categories available. Online/Direct Cover, Group/Industry Superannuation Cover or Comprehensive Tailored Cover. Whilst each are similar there are subtle differences which need to be well understood so that you are able to make an informed decision when considering what Insurance Cover is appropriate for you. 

Let's take a look at some of the main features.

Online Insurance

  • ​Generally purchased on the Internet without any financial advice.
  • Usually very basic cover with limited definitions. Often issued without medical requirements or underwriting.
  • Generally higher premiums as the applications are not assessed for pre-existing medical conditions.
  • Online policies often have more limitations should you make a claim.
  • The cost will increase as you get older.

Industry Fund Insurance

  • ​Usually only available as part of an Employer Superannuation Fund. 
  • Usually provides fixed levels of cover subject to the age of the employee.
  • The cost generally does not increase due to the cover reducing automatically as you get older.
  • The Insurer can alter the terms and conditions at any time.
  • Claims can only be paid to the Super Fund and the Super Fund Trustee determines if the claim can be paid to the employee.

Comprehensive Insurance

  • ​Appropriate levels of cover assessed with a Financial Adviser.
  • Insurance company assesses your health risk at the time of your application.
  • When the Insurer accepts your cover a claim will more likely be paid as they will already know your medical history from the time of the application.
  • The cost of cover is specific to you based on how healthy you are at the time of taking out the policy. 
  • Once your policy is set up the cost may increase as you get older but not if your health deteriorates.
life insurance

A Financial Adviser can find you the most appropriate cover for your needs. 

Contact the office today on 07 3262 4000 for a meeting to discuss your insurance needs.

Source: Centrepoint Aliiance