Everything you need to know about life insurance in Australia. Simple explanations, real examples, and practical advice to protect your family's financial future.
Calculate your exact coverage needs with 3 proven methods and real Australian examples
Comprehensive premium breakdown by age, gender, and smoking status
Detailed comparison of retail vs super life insurance: TPD definitions, costs, portability
Life insurance is a contract that pays your family a tax-free lump sum if you die. You pay a monthly premium, and in return your loved ones get the money they need to cover the mortgage, replace your income, and keep their lifestyle.
Picture the household where you're the main earner. There's a mortgage, two young kids, and a partner working part-time. If something happens to you, your family still has bills to pay:
That's around $10,500 in monthly expenses without your income. Life insurance is the lump sum that closes that gap.
You pay a monthly premium based on your age, health, and how much cover you want. If you die, the insurer pays your nominated beneficiaries. The rest of this guide explains how the cover types work, what is and isn't covered, and how to choose a policy.
Life insurance pays your family a lump sum when you die.
That's it. You pay a regular monthly premium (like a subscription), and if you pass away, the insurance company pays out a death benefit to the people you nominate, usually your spouse, children, or other dependents.
In Australia, most life insurance policies also include terminal illness cover. This means if you're diagnosed with an illness that's expected to cause death within 12-24 months (depending on your insurer), you can access the payout while you're still alive to cover medical costs, pay off debts, or spend time with family.1
Emma, 34, married with two kids (ages 6 and 3)
If Emma dies:
Without life insurance:
This is the difference life insurance makes.
Life insurance isn't for everyone. But you likely need it if anyone relies on your income or if your death would create financial hardship.
✓ You have a partner or family who depend on your income Even if your partner works, could they cover all expenses on one income alone?
✓ You have a mortgage or significant debt Without you, who would make the payments?
✓ You're a stay-at-home parent The cost of replacing your childcare, cooking, cleaning, and household management is $60,000-80,000/year. Your family would need to pay for these services.
✓ You have young children School fees, university, sports, activities, these costs span 15-20 years and total $200,000-$400,000 per child.
✓ You own a business Your death could destroy the business or create financial hardship for partners and employees.
✓ You support aging parents Who would provide financial assistance if you're gone?
✗ You're financially independent with no dependents If you have significant assets and no one relies on your income, the cost may not be worth it.
✗ You have sufficient assets to cover all debts and expenses If your estate could easily cover funeral costs and outstanding debts, you may not need additional coverage.
Note for singles: Even if you don't have dependents, consider small coverage ($50,000-100,000) to cover funeral expenses and debts. Plus, buying coverage while young locks in low rates before health issues emerge.
The process is straightforward:
Fill out a health questionnaire with details about:
For larger coverage amounts (typically $750,000+), you may need a medical exam.
They look at:
The insurer offers you coverage with:
Once you accept, you're covered from day one (with some specific exclusions, see below). You pay monthly, quarterly, or annually.
Beneficiaries need to:
Typical payout timeframe: 2-4 weeks for straightforward death claims.2
The money goes tax-free to your nominated beneficiaries. They can use it however they need:
This guide provides general information about life insurance and doesn't consider your personal circumstances or financial situation. Before purchasing life insurance, speak with a licensed financial adviser and read the Product Disclosure Statement (PDS) from any insurer you're considering.
Life insurance policies have exclusions, conditions, and limitations that vary between insurers. What's covered by one insurer may be excluded by another. Always verify current policy terms before making a decision.
This guide is produced by Insure Me For Life (AR 1244847) under Consilium Advice Australia Pty Ltd (AFSL 246623). We provide general advice only and do not take into account your personal circumstances.
Life insurance isn't just one product, it's a suite of different covers designed to protect against different risks. Think of them as different types of protection for different situations.
What it covers: Death from any cause (after initial exclusions) or terminal illness diagnosis.
When it pays:
Typical coverage amounts: $100,000 to $5 million
Real example:
Tom, 41, dies suddenly from a heart attack
Best for: Anyone with dependents, debts, or financial obligations that would burden others after death.
What it covers: Becoming so disabled you can never work again in your occupation (or any occupation, depending on policy type).
When it pays:
Two types of TPD:
"Own occupation" TPD: Can't work in your specific job
"Any occupation" TPD: Can't work in any job you're suited for
Real example:
Lisa, 38, suffers a severe back injury (physiotherapist)
If Lisa had "any occupation" coverage: Claim likely denied (could work in a desk job)
Best for: Anyone whose disability would prevent them from earning an income, especially those in physical occupations.
What it covers: Diagnosis of serious illnesses like cancer, heart attack, or stroke, even if you can still work.
When it pays: You're diagnosed with a covered condition, which typically includes:
Most policies cover 40-60 different conditions.
Real example:
James, 45, diagnosed with bowel cancer
Important: James also has $500,000 life cover separately, which he keeps.
The difference from life insurance: You don't have to die or be terminal to claim, just be diagnosed with a covered condition.
Best for: Anyone who wants financial support during serious illness to focus on recovery without work stress.
What it covers: Replaces your income (up to 70%) if you can't work due to illness or injury.
When it pays:
How it works:
Real example:
Sophie, 36, breaks her leg badly (graphic designer)
Income protection saved Sophie from:
Best for: Self-employed people and anyone who needs their regular income to cover monthly expenses (most Australians).
Yes, and most people should.
A comprehensive protection plan often includes:
The benefit: Each cover type protects against different risks. You can claim on multiple policies for the same event:
Example: You're diagnosed with cancer
Our licensed advisers can help you compare protection options for your family's situation and budget.
Get Free AdviceUnderstanding what your policy covers, and what it doesn't, is essential before purchasing. Let's clear up the myths and confusion.
Once your policy has been active for 13 months, life insurance covers death from virtually any cause:
✓ Natural causes (heart disease, cancer, stroke, organ failure) ✓ Accidental death (car accidents, falls, drowning, sports injuries) ✓ Illness-related death (infections, complications from medical conditions) ✓ Overseas deaths (all major Australian insurers provide worldwide coverage) ✓ Suicide after 13 months (see below)
All Australian insurers include terminal illness cover as a built-in benefit. This allows you to access your life insurance while still alive if you're diagnosed with a condition expected to cause death within a specific timeframe.
Critical difference between insurers:
Why this matters:
If you're diagnosed with motor neurone disease (MND), which has an average life expectancy of 2.5 years:
The 24-month definition is significantly more generous.3
All policies cover accidental death. Some insurers provide enhanced benefits, such as additional payouts for specific injuries resulting from accidents.
Every major Australian insurer excludes suicide within 13 months of the policy start date, reinstatement date, or when you increase your coverage (applying only to the increased amount).
Why this exclusion exists: It prevents people contemplating suicide from taking out large amounts of insurance immediately beforehand.
After 13 months: Full coverage Once 13 months has passed, death by suicide is covered in full, just like any other cause of death. Insurers pay the full death benefit to beneficiaries with no exceptions.
Myth-busting: "Suicide is never covered" is FALSE. After 13 months, suicide is fully covered by all Australian insurers.4
Special case: If you're replacing existing life insurance that already completed its 13-month suicide exclusion period, most insurers waive the exclusion for the amount you're replacing. Only additional coverage above your previous amount has the 13-month exclusion.
You cannot claim terminal illness benefits for conditions diagnosed before your policy started. This is self-evident, you can't insure against something that's already happened.
However, if you're diagnosed with a terminal illness after your policy starts, you're fully covered, even if the underlying condition existed before (provided you disclosed it during underwriting).
High-Risk Occupations If you work in a dangerous job (commercial diving, underground mining, demolition) and didn't disclose this during application, claims may be denied or benefits reduced.
Solution: Disclose your occupation honestly. You may pay materially higher premiums depending on the occupation, but you'll be covered.
Dangerous Sports and Activities If you participate in extreme sports (skydiving, BASE jumping, mountaineering) and didn't disclose this, claims resulting from these activities may be denied.
Aviation Pilots and aircrew face specific exclusions or premium loadings. However, passenger travel on commercial airlines is always covered.
Criminal Activity Death occurring during criminal acts is excluded:
War and Terrorism Most policies exclude:
Note: Coverage for terrorism varies by insurer, some include it, others exclude it. Check your specific policy.
This is the biggest claim denial reason.
Under Australian law, you have a duty of disclosure, you must tell the insurer about every medical condition, symptom, treatment, or test that could reasonably influence their decision to cover you.
What happens if you don't disclose:
What you must disclose:
Myth-busting: "They can't decline my claim for something I didn't think was important" is FALSE. If a reasonable person would have disclosed it, you're required to disclose it, even if you didn't think it mattered.
Good news: If you disclose a condition and the insurer accepts you (with or without premium loading), claims are covered, even for that condition.5
❌ Myth: "Life insurance doesn't cover dangerous activities" ✓ Truth: It does, but you must disclose participation. Undisclosed activities void claims, not the activities themselves.
❌ Myth: "Suicide is never covered" ✓ Truth: Suicide is fully covered after 13 months.
❌ Myth: "Pre-existing conditions exclude all claims" ✓ Truth: Only undisclosed pre-existing conditions void claims. Disclosed conditions are covered.
❌ Myth: "Overseas deaths aren't covered" ✓ Truth: All major Australian insurers provide worldwide 24/7 coverage.
❌ Myth: "They'll find any reason to deny my claim" ✓ Truth: Australian insurers are highly regulated by ASIC and APRA. Legitimate claims with proper disclosure are paid routinely. The industry claims payment rate exceeds 95% for death claims.
One of the most significant differences between Australian life insurers is how they define "terminal illness." This difference can determine whether you can access your life insurance when you need it most.
12-Month Definition: Life expectancy of less than 12 months despite reasonable medical treatment.
24-Month Definition: Life expectancy of less than 24 months despite reasonable medical treatment.
Example 1: Motor Neurone Disease (MND) Average life expectancy: 2.5 years after diagnosis
Example 2: Terminal Cancer Diagnosed with Stage 4 pancreatic cancer, life expectancy: 18 months
Example 3: Advanced Heart Failure Life expectancy: 14 months without transplant
The difference between accessing $500,000 at diagnosis versus 6-12 months later:
Check your specific insurer's Product Disclosure Statement (PDS) for their exact terminal illness definition. This information is typically found in the "Definitions" section.6
When comparing policies: Ask specifically about the terminal illness period. This can be a deciding factor between insurers.
See which insurers offer 24-month terminal illness cover and compare quotes for your circumstances.
Compare PoliciesLife insurance is more affordable than most people think. Costs vary widely by age, health status, occupation, and coverage amount. Based on LRO API panel data (indicative range), indicative stepped premiums for $500,000 cover for a 30-year-old male non-smoker in a professional occupation sit at .
These are indicative costs for $500,000 life insurance coverage based on LRO API data (indicative panel range, male non-smoker, professional occupation, NSW, stepped premiums, monthly):
Stepped premiums (increase annually with age):
Premiums increase further with age. Use our quote tool for a current indicative figure matching your age, health status, and state.
Smoker rates typically run materially higher than non-smoker rates, commonly approaching double for the same profile. Women typically pay materially less than men at the same age (lower mortality rates).
Your premium is based on five main factors:
The older you are, the higher your risk of death, and the higher your premium.
Why premiums double every 10 years:
This is why buying coverage while young is so valuable, you lock in low rates.
Women pay 20-40% less than men because they live longer (on average) and have lower mortality rates at every age.
This isn't discrimination, it's based on Australian Government mortality tables that all insurers use.
Smoker rates typically run materially higher than non-smoker rates (commonly approaching double for the same profile) because smoking significantly increases risk of death from:
Good news: Quit smoking for 12 consecutive months and you can apply to be reclassified as a non-smoker. The savings are substantial, based on LRO API panel data (indicative range), the non-smoker rate for a 30-year-old male sits at for $500k cover; the smoker rate is roughly double that, so the saving from reclassification approximately halves the monthly figure.
What counts as smoking:
Your job affects premiums based on physical demands and hazard exposure.
Office workers (AAA rating): Baseline rate (0% loading) Examples: Accountants, lawyers, office administrators, IT professionals
Light physical work (AA rating): +10-15% Examples: Teachers, retail managers, healthcare administrators
Moderate physical work (A rating): +25-35% Examples: Nurses, paramedics, electricians
Heavy manual labor (B rating): +40-60% Examples: Builders, carpenters, plumbers, machinery operators
High-risk occupations (C rating): +80-120% Examples: Underground miners, commercial fishers, scaffolders
Extreme risk (D rating): +120-200% (or coverage declined) Examples: Deep-sea divers, explosives handlers
Good news: If you change to a safer job, you can request reclassification and potentially reduce your premium.
Pre-existing conditions affect premiums through premium loadings (increased rates):
Common health loadings (indicative tiers, actual loading varies materially by insurer):
BMI-based adjustments (indicative tiers, actual loading varies materially by insurer):
Key point: Improve your health before applying (lose weight, control blood pressure) and you'll reduce your premium significantly.
How your premium changes over time depends on which structure you choose.
How they work: Your premium increases every year based on your age.
Example (illustrative, actual amounts vary by insurer and profile):
Pros: ✓ Lower cost when you're young ✓ Good for short-term coverage (5-10 years) ✓ Easier to afford initially
Cons: ✗ Significant increases as you age ✗ Often becomes unaffordable after age 60 ✗ Higher total cost over lifetime (20+ years)
How they work: Your premium is fixed based on your starting age and remains relatively stable until age 65.
Example (illustrative, actual amounts vary by insurer and profile):
Pros: ✓ Predictable, budgetable costs ✓ Lower total cost if held long-term (15+ years) ✓ Protection from age-based increases ✓ Easier planning
Cons: ✗ Higher initial cost (40-60% more than stepped at start) ✗ Converts to stepped at age 65 ✗ Less flexible for short-term needs
Choose stepped premiums if:
Choose level premiums if:
The break-even point: Level premiums typically become cheaper than stepped premiums after 13-15 years.
The single most important insight: Buying life insurance at age 30 instead of age 40 saves you tens of thousands of dollars over your lifetime.
Example: $500,000 coverage, level premiums
Based on LRO API data (indicative panel range, male non-smoker, professional, stepped premiums):
Person A (buys at age 30):
Person B (buys at age 40):
Person A's advantage:
Plus: If Person A develops health conditions at age 35, they're still insured at their original rate. Person B might be declined coverage or face heavy premium loadings.
Bottom line: Buy life insurance as young as possible to lock in low rates and insurability.
1. Buy while young and healthy Saves 30-60% vs buying 10 years later
2. Quit smoking for 12+ months Saves 50-100% on smoking loading
3. Improve health before applying Lose weight, control blood pressure, stabilize conditions Reduces loadings by 25-75%
4. Bundle multiple cover types Buy life + TPD + trauma from one insurer Saves 15-25% vs separate policies
5. Pay annually instead of monthly Saves 5-8% vs 12 monthly payments
6. Request reclassification after job change Moving to a safer occupation can reduce premiums by 15-120%
See your exact cost based on your age, health, and occupation. Compare stepped vs level premiums for your situation.
Calculate Your PremiumMost Australians are significantly underinsured. They have some coverage, often through superannuation, but it's nowhere near enough to actually protect their family.
Industry rule of thumb: 8-12 times your annual income.
But let's do better than rules of thumb. Here's how to calculate your actual coverage needs.
This approach calculates exactly how much money your family would need if you died tomorrow.
Step 1: Add up all financial obligations
Outstanding mortgage: $____________
Other debts (car loans, credit cards): $____________
Funeral costs: $____________ (typically $8,000-15,000)
Children's education (to age 25): $____________ (estimate $80,000-$150,000 per child)
Income replacement: $____________ (your annual income × 10-15 years)
Emergency fund: $____________ (6-12 months expenses)
TOTAL NEEDED: $____________
Step 2: Subtract existing assets
Current life insurance: $____________
Superannuation death benefit: $____________
Savings and investments: $____________
Other assets: $____________
TOTAL ASSETS: $____________
Step 3: Calculate your gap
Total needed: $____________
Minus total assets: $____________
YOUR COVERAGE GAP: $____________
This gap is how much additional life insurance you need.
Example 1: Young family with mortgage
Michael, 36, married, two kids (ages 4 and 7)
Needs calculation:
Existing assets:
Coverage gap: $1,595,000
Michael needs: ~$1,600,000 life insurance Cost: Varies by insurer, use our quote tool for indicative level premium figures for your age and health profile
Without adequate coverage: Michael's wife would need to:
Example 2: Single parent
Jessica, 42, single mother, one child (age 11)
Needs calculation:
Existing assets:
Coverage gap: $941,000
Jessica needs: ~$950,000 life insurance Cost: Varies by insurer, use our quote tool for indicative level premium figures for your age and health profile
Example 3: Pre-retiree with reduced obligations
David, 58, married, kids independent
Needs calculation:
Existing assets:
Coverage gap: $0 (fully covered)
David's situation: He can reduce or cancel his life insurance since his superannuation and assets more than cover his wife's needs.
❌ Relying only on superannuation insurance Super often provides insufficient coverage (typically $100,000-$200,000 vs needed $500,000-$1 million)
❌ Using income multiples without considering debts "8 times income" doesn't account for a $500,000 mortgage
❌ Not accounting for inflation $500,000 today won't have the same purchasing power in 15 years
❌ Forgetting education costs Private school and university can cost $200,000+ per child
❌ Underestimating stay-at-home parent value Replacing childcare, cleaning, cooking, and household management costs $60,000-80,000/year
Yes, your coverage needs change as your life changes.
Increase coverage when:
Decrease coverage when:
Most people: Start with high coverage ($750,000-$1.5 million) in their 30s-40s, then gradually reduce to $200,000-$400,000 by their 60s.
Use our needs-based calculator to determine precisely how much life insurance your family needs.
Calculate CoverageWith 9 major insurers and hundreds of policy variations, choosing the right life insurance can feel overwhelming. Here's a simple framework to make the right decision.
Common considerations:
Everyone with dependents needs:
Consider adding if applicable:
Most comprehensive protection: Life + TPD + Trauma + Income Protection
Use the needs-based calculation method above.
Quick estimate:
Stepped or level?
Terminal illness definition:
TPD definition:
Trauma conditions covered:
Premium guarantee:
Waiting periods:
Benefit period:
Exclusions and limitations:
Financial strength:
Cost:
Before you sign anything:
✓ Read the full PDS (it's long, but essential) ✓ Understand all exclusions ✓ Verify the terminal illness definition ✓ Check the TPD definition ✓ Understand the claims process ✓ Note the cooling-off period (30 days)
Don't skip this step. The PDS contains the exact terms of your contract.
Be 100% honest about:
Remember: Undisclosed conditions are the #1 reason claims are denied. If you're unsure whether something needs to be disclosed, disclose it anyway.
Benefits of using an adviser:
Do it yourself if:
Use an adviser if:
Should I get insurance through super or outside super?
Inside super (through your super fund): ✓ Premiums paid from super (not your pocket) ✓ Tax-effective ✗ Limited coverage amounts ✗ Payout goes to super trustee first (delays) ✗ Less control over beneficiaries
Outside super (retail policy): ✓ Higher coverage limits ✓ Faster payouts ✓ Full control over beneficiaries ✗ Premiums paid from after-tax income ✗ Typically more expensive
Best approach: Keep basic super insurance + add retail policy for additional coverage.
Should I choose "own occupation" or "any occupation" TPD?
Own occupation: More expensive but easier to claim (recommended if you're in a specialized profession)
Any occupation: Cheaper but harder to claim (acceptable if you work in general roles)
How long should my income protection benefit period be?
Short benefit (2 years): Cheaper, but limited protection Medium benefit (5 years): Good balance Long benefit (to age 65): Most expensive, maximum protection
Recommendation: "To age 65" if you can afford it.
🚩 Policy seems too cheap: Low premiums often mean limited coverage or exclusions 🚩 Insurer pressures you to buy immediately: Take time to compare 🚩 Adviser won't explain policy details: Find someone who will 🚩 Policy has unusual exclusions: Read the PDS carefully 🚩 "Guaranteed acceptance" policies: Often limited coverage with high premiums
Our licensed advisers help you compare policies, choose the right cover types, and find the best value for your circumstances.
Speak to an AdviserYes. Many Australians have:
When you die, your beneficiaries can claim from all policies, payouts are not limited to one policy.
Your policy enters a grace period (typically 30 days). If you don't pay within this time:
Never let your policy lapse intentionally. If you need to reduce costs, contact your insurer to reduce your coverage amount rather than cancelling.
No. All Australian life insurance policies are guaranteed renewable. As long as you pay your premiums on time, the insurer cannot:
Your premiums may increase (stepped premiums), but your coverage continues.
You have 30 days from receiving your policy documents to cancel and receive a full refund of premiums paid (provided you haven't made a claim).
Use this time to:
Yes, at any time. Simply contact your insurer and update your beneficiary nomination.
Important: Keep your beneficiaries up to date, especially after major life events (marriage, divorce, children).
Yes, after 13 months. Once your policy has been active for 13 months, suicide is covered just like any other cause of death.
The first 13 months have a suicide exclusion to prevent anti-selection (people taking out insurance immediately before suicide).
Your coverage continues. This is the value of life insurance, once you're covered, health changes don't affect your policy or increase your premiums (beyond normal age-based increases on stepped structures).
Example: You buy insurance at age 30 while healthy. At age 35, you're diagnosed with cancer. Your insurance remains in place and will pay out when you die, no changes, no exclusions.
Sometimes. Many policies offer guaranteed insurability options that allow you to increase coverage without medical questions when you:
These increases are typically limited (e.g., up to 25% of your original coverage).
For larger increases, you'll need new medical underwriting.
Death claims: Typically 2-4 weeks after receiving:
Terminal illness claims: 4-8 weeks (requires medical evidence from specialists)
TPD claims: 2-6 months (requires extensive medical evidence of permanency)
Trauma claims: 4-12 weeks (varies by condition and medical evidence required)
Australian insurers are regulated to process legitimate claims promptly. Delays usually result from incomplete documentation.
You have several options:
Good news: If you disclosed everything honestly during application and your claim falls within policy coverage, Australian insurers have a high claims approval rate (95%+ for death claims).
It depends on your situation:
Consider life insurance if you:
You probably don't need it if:
Many young singles buy small policies ($100,000-$200,000) to cover debts and funeral costs while locking in healthy-person rates.
Life insurance is simpler than it seems:
✓ It pays your family a lump sum when you die to replace your income and maintain their lifestyle
✓ You need it if anyone depends on your income or if your death would create financial hardship
✓ Four main types of cover: Life (death), TPD (disability), Trauma (illness), Income Protection (income replacement)
✓ Costs vary significantly by age, health, and coverage amount, indicative figures from LRO API panel data sit at for a 30-year-old male non-smoker on $500k cover (stepped, professional occupation)
✓ Suicide is covered after 13 months, this is standard across all Australian insurers
✓ Terminal illness definitions vary: 24-month is better than 12-month
✓ Buy coverage while young to lock in low rates and insurability
✓ Level premiums save money long-term if you plan to keep coverage for 15+ years
✓ Disclose everything honestly during application to avoid claim denials
✓ Calculate your needs using the needs-based method, don't rely on generic rules of thumb
✓ Read the PDS carefully before signing, it contains your actual contract terms
✓ Work with a licensed adviser if you have complex needs or want expert guidance
Ready to protect your family's financial future?
Compare quotes from all major Australian insurers. See your exact costs and coverage options based on your unique circumstances. No obligations.
Get Your QuoteThis guide is produced by Insure Me For Life (AR 1244847) under Consilium Advice Australia Pty Ltd (AFSL 246623). We provide general advice only and do not take into account your personal circumstances.
Important: This guide provides general information about life insurance and doesn't consider your personal circumstances or financial situation. Before purchasing life insurance, speak with a licensed financial adviser and read the Product Disclosure Statement (PDS) from any insurer you're considering.
All information is current as of January 2026 and is reviewed regularly for accuracy.
Terminal illness definitions vary between insurers. Some use a 12-month life expectancy definition, others use 24 months. The 24-month definition is more generous and allows earlier access to benefits. This information is found in the "Definitions" section of each insurer's Product Disclosure Statement (PDS). ↩
According to industry standards monitored by ASIC and APRA, Australian insurers typically process straightforward death claims within 2-4 weeks of receiving all required documentation (death certificate, claim forms, proof of relationship). Claims may take longer if documentation is incomplete or if investigation is required. See insurer PDSs for specific claims processes. ↩
Major Australian insurers use different terminal illness definitions. TAL uses a 12-month definition (life expectancy less than 12 months). AIA and Zurich use 24-month definitions (life expectancy less than 24 months). This information is published in each insurer's current Product Disclosure Statement under the "Definitions" or "Terminal Illness Benefit" sections. The definition difference can significantly impact when you can access your benefit for conditions like motor neurone disease (MND) with typical life expectancy of 2-3 years. ↩
Every major Australian life insurer excludes suicide within 13 months of policy commencement, reinstatement, or benefit increase (applying only to the increased amount). After 13 months, suicide is covered in full with no exceptions. Insurers waive the 13-month exclusion when replacing existing coverage that already completed its exclusion period (applying only to the replacement amount, not additional coverage). This is standard across AIA, TAL, Zurich, OnePath, ClearView, NEOS, Encompass, Acenda, and Futura. See each insurer's PDS under "Exclusions" or "When We Won't Pay" sections. ↩
Under Australian law (Insurance Contracts Act 1984), policyholders have a duty of disclosure. You must disclose all facts that could reasonably influence an insurer's decision to cover you, including all medical conditions, medications, doctor visits, family history, and lifestyle factors. Failure to disclose can result in claim denials or policy cancellation. However, if you disclose a condition and the insurer accepts you (with or without premium loading), claims related to that condition are covered. This is a fundamental principle of Australian insurance law. ↩
To find your insurer's terminal illness definition, look for the "Definitions" section (usually near the back) of their Product Disclosure Statement (PDS). The terminal illness benefit definition will specify either "12 months" or "24 months" as the life expectancy timeframe. This definition determines when you can access your life insurance benefit while still alive. All insurers publish their current PDS on their website or can provide it upon request. ↩