FAQ
Select a topic from the list below to view the frequently asked questions and answers:
General
Death
Total and Permanent Disablement
Trauma
Income Protection and Business Expenses
General
Why is Life Insurance Important?
Financial planning can help you achieve your financial goals, but it's also important to protect the wealth you're creating. That's why a balanced investment strategy should always include provision for any setbacks that may occur. It's not surprising that many financial advisers suggest that adequate life insurance should be the first stage in any investment strategy.
Life insurance is one of the best ways of protecting what's most important to you. When planning for the financial future of yourself and your loved ones, insurance is a simple and effective way of protecting yourself and your family from losing the most important assets you have.
Do your loved ones depend on you? Can they afford the financial burden of caring for you if you suffer a medical crisis or are permanently incapacitated? Have you thought about how your family or your partner would cope financially if you died unexpectedly or became totally and permanently disabled?
When you have life insurance you have peace of mind knowing that in these tragic situations, the ones who depend on you will not be financially disadvantaged with the burden of maintaining living standards and keeping up loan repayments.
If you were to suffer a medical crisis or to become permanently or temporarily incapacitated, life insurance can protect you from both the loss of income and the burden of medical expenses.
Protecting your business is also important when planning for life insurance. Contact a financial Adviser for more information on how Life Insurance can help you.
Am I covered whilst travelling overseas?
Yes, all of our insurance products provide cover 24 hours a day, wherever you are in the world.
How much will it cost?
Your life insurance premium will depend on how much and which cover you choose, and a range of factors such as age, gender, smoking status, health and occupation.
How do I pay my premiums?
You have the choice of 3 methods of payment;
- Cheque or money orders;
- Credit card (Visa, Bankcard or Mastercard) over the phone by calling our customer service centre on 1800 221 727; or
- Direct debit authority from your bank account or credit card.
You may need to have medical tests before taking out a policy with us, but this will depend on how much and which cover you choose, and a range of factors such as age and health.
Death
How much cover should I have?
There are no set guidelines for calculating how much death cover you need – it all depends on your personal circumstances. Including factors such as how you want to provide for your family and business after your death. Contact a financial adviser for more information on how much cover you should have.
Can I change my amount of cover, if my personal circumstances change?
Yes, you may increase or decrease the cover of Term Life if your circumstances alter. Our Special Events Increase Benefit, allows you to increase you cover when certain events such as marriage, having children, buying a home or becoming a carer for the first time occur, without the hassle of providing further medical evidence.
Are there any tax implications?
The following table highlights the tax impact on any premiums paid as well as any benefits received;
| Premium Impact |  | Benefit Impact |
| Premiums are not normally tax deductible. If the policy is taken out by a business for a revenue purpose or by a superannuation fund, these premiums may be deductible. | | Payment of the Death Benefit sum insured under Term Life is normally free of personal income tax, unless the insurance was taken out by a business for a revenue purpose. Capital Gains Tax (CGT) is not normally payable if the Death Benefit sum insured is paid to:
|
Total and Permanent Disablement
How much Total and Permanent Disablement (TPD) cover do I need?
The amount of your TPD cover depends on your individual circumstances. In deciding how much cover you need, you should consider the costs of your living expenses, the medical costs associated with being totally and permanently disabled as well as the cost of clearing your debts such as your home mortgage.
Can I change my amount of cover, if my personal circumstances change?
Yes, you may increase or decrease the cover of your TPD cover if your circumstances alter. Our Permanent Disability Increase Benefit, allows you to increase you cover when certain events such as marriage, having children, buying a home or becoming a carer for the first time occur, without the hassle of providing further medical evidence.
Are there any tax implications?
The following tables highlight the tax impact on any premiums paid as well as any benefits received;
TPD as an option under the Term Life product
| Premium Impact | | Benefit Impact |
| Premiums are not normally tax deductible. If the policy is taken out by a business for a revenue purpose, the premiums may be deductible. | | Payment of the sum insured is normally free of personal income tax. Tax may be payable if the policy was taken out by a business for a revenue purpose. Capital Gains Tax (CGT) is not normally payable if the sum insured is paid to:
|
Stand Alone TPD
| Premium Impact | | Benefit Impact |
| Premiums are not normally tax deductible. If the policy is taken out by a business for a revenue purpose, the premiums may be deductible. | | Payment of the sum insured is normally free of personal income tax. Tax may be payable if the policy was taken out by a business for a revenue purpose. Capital Gains Tax (CGT) is not normally payable if the sum insured is paid to:
|
Trauma
How much Trauma cover do I need?
The amount of your Trauma cover depends on your individual circumstances. In deciding how much cover you need, you should consider the costs of your living expenses, the medical costs associated with a serious illness, as well as rehabilitation costs. You may also want to provide extra funds for a holiday that could help you to recuperate.
Can I change my amount of cover, if my personal circumstances change?
Yes, you may increase or decrease the cover of your Recovery or Stand Alone Recovery policy if your circumstances alter. Our Recovery Increase Benefit, allows you to increase you cover when certain events such as marriage, having children, buying a home or becoming a carer for the first time occur, without the hassle of providing further medical evidence.
Are there any tax implications?
The following table highlights the tax impact on any premiums paid as well as any benefits received;
| Premium Impact | | Benefit Impact |
| Premiums are not normally tax deductible. If the policy is taken out by a business for a revenue purpose (for example replacing income of the business if a key person dies), the premiums will be tax deductible. If the policy is taken out by a business for a capital purpose (for example to buy out a partners share in the business), the premiums will not normally be tax deductible. | | Payment of the sum insured under Recovery or Stand Alone Recovery is normally free of personal income tax if the policy is taken out on your own or your spouse's life. Tax may be payable if the policy was taken out by a business for a revenue purpose. If the policy was taken out by a business for a capital purpose the tax treatment will depend heavily on the arrangement between the owners of the business. Capital Gains Tax (CGT) may apply in circumstances where the benefits are paid other than to the insured person, their spouse, children or other dependants. |
Income Protection and Business Expenses
What is Income Protection Insurance and why do I need it?
Income protection insurance enables you to meet your financial commitments by providing you with regular payments should you be unable to work due to sickness or injury. Currently you can cover up to 75% of your income until you return to work.
An additional type of protection product, Business Expenses, provides cover for the operating expenses of your business whilst you're unable to work due to sickness or injury. This product is ideal for the self-employed, for partnerships and for small businesses.
Aren’t I covered by WorkCover?
Statistics show that more than half of all serious accidents happen outside of work where workers compensation does not apply*. It is also shown that 57% of disability claims are for sickness **. Workcover# does not cover non-work related sickness.
*Australian Bureau of Statistics National Health Survey 1995
**Institute of Actuaries - Report to the Disability Committee, May 1995
# WorkCover is being used as a generic term for the Workers Compensation arrangement in each state
If I get sick or hurt, how soon will my benefits from income protection insurance start?
That will depend on the waiting period that you have selected and the type of benefits you have in your income protection policy.
I have sick leave at work, how long should my waiting period be with my income protection insurance?
Ideally, with income protection insurance, your waiting period should commence at the end of any sick leave entitlements. The longer the waiting period, the less you will pay for your policy.
How much of my income can I insure for with income protection insurance?
Generally you can insure up to 75% of your gross income. This is after the deduction of any business expenses.
Are there any tax implications?
The following table highlights the tax impact on any premiums paid as well as any benefits received;
| Product | | Premium Impact | | Benefit Impact |
| Income Protector & Income Advantage | | All premiums are normally fully tax deductible whether you are employed or self-employed. | | Any monthly benefits received are taxed as income and should be declared in your annual tax return and where applicable, included in a Business or Instalment Activity Statement. We do not deduct any tax from monthly benefits prior to payment. |
| Business Expenses | | All premiums are normally fully tax deductible as a business expense. | | Any monthly benefits received are taxed as income and should be declared in your annual tax return and where applicable, included in a Business or Instalment Activity Statement. We do not deduct any tax from monthly benefits prior to payment. |
How does my occupation affect the price of income protection insurance?
As a general rule, the greater the chances of suffering a sickness or having an injury as a result of the duties you perform in your occupation, the more you will pay for your income protection policy. For example, a plumber would carry out duties that are more exposed to the chances of having a sickness or injury than, say a clerk, who would normally be desk bound will little exposure to things that can prevent them from working as a result of a sickness or injury.
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