What You Didn’t Know About Life Insurance


Going Behind Closed Doors to Demystify Life Cover!

Although death is an inevitable part of life, it can often be an uncomfortable topic for people to think about. As we get older, however, and our life circumstances begin to change, there’s no doubt that planning for this eventuality is something that should be an increasingly significant priority. If you’re feeling unsure about the types of insurance you might need, or you’re simply bamboozled by all the confusing jargon, don’t worry – you’re definitely not alone!

father_sonThe most important thing is to ask lots of questions, be completely honest about your situation, and find an insurance provider that you trust. We’ve provided a helpful guide below that briefly outlines the different types of life insurance you might want to keep in mind for the future. If you’re interested to find out further facts on the topic, be sure to take a browse through Compare the Market’s life insurance information for all the pertinent details.


Also known as: Term life insurance, death cover, life cover

A brief description:


• Pays a lump sum on your death, or when you are diagnosed with a terminal illness

• Can be used to help cover your mortgage and other debts, your children’s education and childcare bills, your family’s living costs , ensuring your family will be covered financially in the years after you are gone

• Provides payment regardless of the method of death






Also known as: Critical illness insurance, medical catastrophe insurance, crisis recovery

A brief description:

• Pays a lump sum in the case that you are diagnosed with a medical illness or you suffer a medical injury that drastically affects your lifestyle

• Covers a multitude of trauma events, including diabetes, heart attack, loss of limbs and stroke, as well as different cancers and brain tumours

• Can be used to assist the costs of medication, hospital bills, mortgage and rent payments, and even modifications to your home



A brief description:

• Pays a lump sum in the event that you become totally and permanently disabled, which will cover you if you are unable to work again due to your condition

• Can be used to help cover your rehabilitation costs, living expenses (yours and your family’s), mortgage payments and other debts

• Payments are generally made six months after the disability has been apparent, by which your insurer has ostensibly observed that you are unlikely to work again due to your condition



Also known as: Disability income insurance, salary continuance insurance

A brief description:

• Provides either short-term or long-term financial cover as your replacement income, if you are unable to work due to sickness or injury

• Offers a range of waiting periods and benefit periods to accommodate your individual needs

• Can cover up to 75% of your current income and, depending on the policy, payments may continue up to the age of 65 if your sickness or injury is permanent or enduring



You should always read the fine print and make sure you completely understand the terms of your cover when it comes to Life Insurance, as different insurance companies do have different policies and varying conditions.

No matter what your situation is in life, it’s always better to be prepared for the at times uncertain future. Even if you aren’t the sole breadwinner, for instance, having life insurance would provide a safe cover for your spouse, so they wouldn’t be forced to sacrifice their job to care for the family. The earlier you start considering your options when it comes to life insurance, the better you will feel knowing that your loved ones will be taken care of, no matter what happens.


Author comparethemarket.com.au

Launched in September of 2012, Comparethemarket.com.au – operated by Compare the Market Pty Ltd (CTM) – has teamed up with a range of Australia’s insurance providers so you can compare some of the latest deals, in one place, side-by-side. The team behind comparethemarket.com.au have experience in insurance, comparison, customer service and digital. If this was a stuffy corporate monologue, we’d tell you that we’re a bunch of subject matter experts specialising in User Experience, Customer Insights & Online Strategies. But to be honest, it’s just as accurate (and a whole lot easier) to say that we’re a bunch of people who want to make your experience with online comparison better. We pride ourselves on the fact that we’re forward-thinking, that we share an entrepreneurial spirit, and the fact that we like to have a bit of a laugh too. We’re all a bit too addicted to chocolate, but no one’s perfect, really.

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