Life Insurance FAQs - Common Life Insurance Questions Answered

Here’s a brief overview of each type of insurance NobleOak offers:

• Life Insurance: Provides cover with a lump sum payment if you were to die or become terminally ill, helping to support your family and ease their financial burden. Within Life Insurance, a Family and Carer support benefit is provided to help manage your care, up to a $25,000 limit. If you become terminally ill, we’ll advance the Death Benefit. To be eligible, two medical practitioners must certify that your terminal illness is likely to result in death within 24 months.
• Income Protection Insurance: Pays a monthly benefit if you cannot work because of sickness or injury. You can apply to insure up to 70% of your income. The maximum monthly benefit is capped at $30K.  If you are earning any income following your sickness or injury, this is considered along with any other payments you may be receiving.
• Total and Permanent Disability (TPD) Insurance: TPD Insurance is an optional insurance cover that can be taken with Life Cover. It provides a lump sum payment if you become permanently disabled solely because of sickness or injury and are unlikely to ever work again. The cover you take out and the benefits you will receive if you were to claim are dependent on whether you take out cover based on your “own” occupation or “any “occupation. More information on the difference between own and any occupation can be found in the Premium Direct PDS.
• Trauma Insurance: Provides a lump sum payment if you suffer a serious specified medical condition. The conditions which are covered are listed in our Premium Direct PDS. There are six Main Trauma Events and 31 Other Trauma Events. This cover can help with support when one of these events occur. The medical definition is updated regularly.

Choosing the right Life Insurance product depends on your individual needs, financial situation, and priorities.  Please refer to our Target Market Determinations (TMDs) that advise on suitability for customers.

Each type of insurance serves a different purpose, so it’s important to understand the features and benefits of each to determine which ones align with your financial protection needs and goals.

Please contact us for more information or call our team on 1300 041 494.

There are many comparison sites that compare life insurance policies.  Not all policies have the same features and benefits. It may also be helpful to visit a comparison site such as Canstar or Finder to compare various Life Insurance policies and further determine what suits your requirements before you take the next step.

Life Insurance – also known as Life Cover – provides a lump sum and allows a type of financial safety net for your loved ones in the event of your death or terminal illness. A typical Life Insurance policy pays out a lump sum benefit, known as the ‘sum insured’, to your nominated beneficiaries or estate.  This allows your family or loved ones to utilise the payment to help manage any financial commitments.

Additionally, NobleOak’s Life Insurance product provides optional extras to enhance the lump sum benefit. These can include an advance on your cover to assist with family and carer support and/or the cost of a funeral, as well as grief counselling. In essence, Life Insurance helps your family maintain their standard of living from a financial standpoint during a challenging time.

More information can be found in our article: How does Life Insurance work in Australia and how do I get started?

When determining how much Life Insurance you may need, it is important to think about a number of factors including:

• Your age, occupation and health status
• Your current debt – i.e. your mortgage, personal loans and credit cards
• The number of dependants you have
• Your current and future income
• Your savings
• Future education expenses for your children – i.e. school and university fees
• Ongoing household expenses, including utility bills, groceries and insurances
• Lifestyle costs – sport and music lessons, birthdays, and holidays
• Childcare and home assistance – if you or your spouse are a stay-at-home parent, you may need to cover the cost of home assistance to help look after children and manage running the household
• Housing affordability

You can use our Life Insurance calculator to estimate your Life Insurance needs or contact us to speak to one of our friendly insurance experts.

With NobleOak’s Premium Life Direct Life Cover product, Australian residents between the ages of 16 and 69 can apply for up to $25,000,000 in cover. If you are between the ages of 70-74 you can still apply for up to $500,000 in life cover.

Term Life Insurance provides coverage for a specific period (term) and pays out a death benefit if the insured person passes away during that term. NobleOak provides Term Life Insurance, and you can maintain your cover up until the age of 99 or as stipulated on your policy certificate. Find out more about Term Life Insurance here.

The cost of Life Insurance in Australia depends on various factors such as:

• Age
• Gender
• Smoking status
• Occupation
• Lifestyle
• Medical history
• Your desired level of cover

You may find that Life Insurance with NobleOak costs less than you think. For example, if you are a 35-year-old non-smoking male in good health, you would pay approximately $21/month for cover worth $500,000 (note this would depend on any other lifestyle or medical conditions you might have).  If you are a 35-year-old non-smoking female, you would potentially pay approximately $16/month for the same cover. This is based on you having no special conditions. If you do have special conditions related to your health, personal circumstances or occupation, this may result in loadings or exclusions. Once you go through underwriting, we will be able to provide you with an accurate quote based on your circumstances.

At NobleOak, premiums can be paid monthly or yearly to suit your budget. You can choose the types and amounts of cover you want, and you will only pay for the cover you choose.

Get a Life Insurance quote now to see how affordable it can be for you or find out more about how much Life Insurance costs.

The most suitable life stage to buy Life Insurance can vary depending on your individual needs and financial situation. However, there are various times when you might want to consider taking out cover. Some of these scenarios are outlined below, to help you decide when would be best for you:

• When you purchase a home: Usually when you purchase a home you will take out a mortgage. Life insurance will support your loved ones in helping to continue to pay that mortgage if anything was to happen to you.
• When you’re young and healthy: Life Insurance premiums are typically lower when you’re young and in good health. While your cover will increase in cost as you age, you will not be required to go through underwriting again if you continue to pay the costs of your policy. which will mean any subsequent health conditions won’t be accounted for in the costs of your premium.
• When you have dependents: If you have a spouse, children, or other dependents who rely on your income to cover their living expenses, it’s a good idea to consider Life Insurance.
• When you have debt: If you have significant debts, such as a mortgage, student loans, or credit card debt, Life Insurance can help to ensure these debts do not become a burden on your family if you were to pass away.
• When you want to leave a legacy: If you want to leave an inheritance or financial legacy to your loved ones or a charity, Life Insurance can help ensure that your beneficiaries receive a tax-free payout upon your death.
• When you want to cover final expenses: Even if you don’t have dependents, Life Insurance can help cover your funeral and burial expenses, relieving your family or loved ones of this financial burden.

It’s important to assess your specific objectives to determine the best time to buy Life Insurance. Your Life Insurance needs can also change over time, so it’s a good practice to periodically review and adjust your coverage as your circumstances evolve. You may wish to gain independent advice.

After your application is assessed and approved, your coverage officially starts from the date outlined in your policy certificate. This is known as your policy commencement date. This means that you can have peace of mind knowing your loved ones are financially protected from that moment onward.

However, it’s important to be aware of any waiting periods or specific conditions that may apply to your policy. For example, certain benefits, such as those for pre-existing health conditions, may have waiting periods or exclusions. If you take out cover with NobleOak, we will provide you with clear and transparent information about when your coverage begins, and any terms you need to be aware of. You will also need to pay your premiums promptly when the policy comes up for renewal.  Please also be aware that Life cover contains a 13-month suicide exclusion clause.

To claim on a NobleOak Life cover Insurance policy with NobleOak, the first step is to notify us as soon as possible after the policyholder’s passing. You can contact us online or by phone, and we’ll guide you through the process.

Once all the required information is submitted, our claims team will assess the details, and if approved, the benefit will be paid out to your nominated beneficiaries. NobleOak aims to review and pay all claims quickly and efficiently, when you meet the eligibility requirements, Once payments are approved, claims payments are processed within two business days on average. NobleOak accepted 98.8% of Life Cover claims in July 2023 to June 2024. as assessed by MoneySmart.*  This means we are well above the average industry claim acceptance rate of 91%.

More information about making a claim can be found here:

• What can you expect when you claim with NobleOak?
• Our simple four step insurance claim process

*As reported by MoneySmart.gov.au sourced from ASIC from 1 January 2023 to 31 December 2023. Full table can be accessed at Life insurance claims comparison tool – Moneysmart.gov.au

A premium is the regular payment you make to ensure your policy remains what we call ‘in-force’ or current and you are protected in the event of a claim. Life insurers in Australia usually offer the option of taking out a policy with either variable age stepped premiums (also known as stepped premiums) or variable premiums (also known as level premiums).

NobleOak’s range of Life Insurance products offer variable age stepped premiums. This means your premium will increase each year at each policy anniversary as you get older, based on your age.

The rationale behind this is as people age, the likelihood of that person making a claim increases, due to factors such as declining health or increased mortality risk. To account for this higher risk, the premiums increase as you get older. This means that when people purchase life insurance and continue to hold it over time, their cover reflects their life stage and level of risk. This framework is commonly used across the life insurance industry in Australia.

Please refer to page 62 of the Premium Life Direct PDS to find out more about how premiums are calculated.

Yes, it’s possible to have two Life Insurance policies. One of the main reasons someone might consider having multiple policies is that they already hold Life Insurance in their superannuation but want to top it up because they feel it falls short of their needs.  The Rice Warner ‘Underinsurance in Australia 2020’ report indicated there is a gap between how much cover many Australians have through super, and how much they may actually need. The report reveals, “the median default cover of superannuation funds meets approximately 65% to 70% of basic level death cover needs for average households, but a much lower proportion for families with children.” Similarly, the Deloitte Mind the Gap report published even more recently in 2023, estimated that Australian families could have claimed $25 billion more for life insurance events in the year previous, if it was not for underinsurance, and that the underinsured segment in Australia has increased even further since the Rice Warner report.

If you are thinking about purchasing or holding multiple policies, keep in mind that insurers may require you to provide information about your existing coverage, and they will assess your eligibility based on your medical and financial situation.

Life Insurance (Life Cover) payouts can be tax free, particularly when they are paid to someone who is dependent on you, such as children under the age of eighteen. Trauma Insurance and Total and Permanent Disability (TPD) Insurance benefits are also typically paid tax free.

However, claim payouts made under Income Protection Insurance are typically taxed.

When naming an insurance beneficiary, you will need to check your policy to establish who counts as a financial dependent. Spouses are commonly accepted, but there are more restrictions around children over the age of eighteen, who are often not regarded as financial dependents when it comes to receiving a lump sum and therefore may be taxed. If Life Insurance is purchased through a superannuation fund, the benefits will be paid to the trustee.

You should seek specific advice from a tax professional to gain a sound understanding of your tax obligations. You can also learn more, including information around the tax implications around the payment of life insurance premiums in our guide: Is Life Insurance Tax Deductible?

Life Insurance is intended to provide financial security to the loved ones left behind in the event of sudden and unexpected death. But what happens if that death occurs due to a suicide? Will the policy pay out, or will the insurance cover be voided?

Although you will hopefully never need to use this information, it is important that you understand your rights and obligations should you ever lose a loved one to self-harm and then need to make a claim on their Life Insurance.

How it works

A Life Insurance policy will generally not pay out for a suicide that occurs within 13 months after the inception of the cover. This is to safeguard the life insurer where the life insured may have taken out cover with the sole intention of committing an act of self-harm.

The insurer may also need to review the life insured’s full medical history in some instances to check if there were any significant mental health issues in the past which the life insured may not have disclosed at the time of underwriting. Failure to disclose all relevant information to the insurer could potentially result in a claim being denied if these details were considered to have been a material factor in the death.

It’s important to be aware that if the life insured has changed insurers, or increased their level of Life Insurance cover, the 13-month suicide exclusion period may be applicable either to the full cover or the increased portion of the cover.

NobleOak’s Life Cover policy

NobleOak’s Life Cover excludes death by suicide only for the first 13 months after the cover originally commenced, or for 13 months for the increased portion of any cover.

After this 13-month period has expired, if the life insured’s death was confirmed as having been caused by their own hand, we will not void the cover and we will generally look to pay the claim subject to our normal claims review procedures.

Yes: most Life Cover policies, including those offered by NobleOak, cover death resulting from cancer. It’s important to note that the claim will be assessed based on the terms and conditions of the policy, so full disclosure of medical history during the application process is essential to ensure coverage.

For additional peace of mind, you may want to consider adding Trauma Insurance to your policy. Trauma Insurance provides a lump sum benefit if you are diagnosed with a specified critical illness, such as cancer, and survive for a defined period. This benefit can be used to cover treatment costs, rehabilitation, or other expenses – allowing you to focus on recovery.

Learn more in our guide: Can You Get Life Insurance with Pre-Existing Conditions?

Life Insurance policies are generally not transferrable between individuals. A policy is a legal agreement between the insurer and the policyholder, and its terms are based on the policyholder’s specific circumstances. Since these factors are unique to each person, transferring a policy to someone else is typically not permitted. However, the policyholder can nominate beneficiaries to receive the policy benefit in the event of their passing, ensuring the financial protection is directed where it’s needed most.

Yes, you can typically reduce your Life Insurance policy over time to reflect your changing needs and financial circumstances. For example, as you pay off a significant debt like a mortgage, you may find that you require a lower level of coverage. With NobleOak, we offer the flexibility to adjust your sum insured, allowing your policy to evolve with your life stages while helping you manage your premium costs effectively.

Policy adjustment requests can be made through our existing customers page or you can call us to discuss your options on 1300 551 044.

Yes, Life Insurance policies can expire, but this typically depends on the type of policy and the terms set out when it was purchased. Most Life Insurance policies, like those offered by NobleOak, provide coverage up to a specified age. NobleOak provides cover to customers up to 99 years old (unless stipulated otherwise on the policy certificate). Once you reach the maximum age stated in your policy, the coverage will cease. If you stop paying premiums, the policy will lapse and no longer provide protection. benefits.

Yes, you can cancel a Life Insurance policy if your needs or circumstances change. Keep in mind that cancelling your policy means that no benefits will be paid out in the event of your passing. Before cancelling, it’s a good idea to review your financial situation to ensure it’s the right decision for you.

If your policy is with NobleOak and affordability is a concern, we can offer options that may help, such as adjusting your level of cover to reduce your premiums. This way, you can maintain some level of protection without cancelling your policy outright.

If you’d like to talk to us about your options to manage the costs of your cover, call us on 1300 551 044. There are many options we can provide to help you to manage affordability which you may wish to explore before cancelling your cover. You can also find more information in the PDS in the section called ‘Managing your cover over time’.

It’s often a good idea for both spouses to have Life Insurance, especially if they share financial responsibilities or have dependents. Even if one spouse doesn’t have a full-time income, their contributions to the household – like managing childcare or domestic tasks – would be expensive to replace. Having coverage for both partners ensure your family’s financial stability is more protected, regardless of who is providing income or support.

More information can be found in our guide: Life Insurance for Couples.

NobleOak’s range of Life Insurance products offer variable age-stepped premiums. This means your premiums will increase each year with your age. The annual premium increases because the risk of you needing to make a claim grows greater with age.

In addition, your premium may will increase each year to guard your cover against inflation. This helps ensure your level of cover remains relevant to your needs. You do have the option to stop the indexation of your cover if you prefer, in which case any rise in your premium will only be due to your increasing age.

If you hold a policy with NobleOak, in most circumstances, your NobleOak Life Insurance policy will remain valid if you travel overseas – this includes going on a holiday and moving to another country.

We provide 24 hours worldwide cover, anywhere in the world, unless specified otherwise in writing and subject to any special conditions or exclusions to your policy.

However, if you’re traveling to countries with higher risks – such as those experiencing conflict or health crises – it’s a good idea to check with our team to confirm that your coverage will remain unaffected. Simply give us a call and we can talk through your individual circumstance.

Countries excluded from cover

Some countries are excluded from cover mainly due to political unrest, war, or natural disaster. As these are subject to change, we recommend that you always check with us before travelling overseas to make sure you are covered.

If you choose to remain in a country or part of a country where an Australian government ‘reconsider your need to travel’ or ‘do not travel’ travel warning has been issued, or an evacuation has been coordinated, you may not be covered. Again, it is recommended you check with us if this occurs whilst travelling.

Other exclusions unique to you

In rare cases, travel exclusions may apply based on your individual circumstances. If this is the case, they will be determined during the initial application process and agreed with you.

Remember, always check current travel advice

The Australian Government recommends all travellers check current travel advice, which it maintains for more than 170 destinations on the SmartTraveller website. The Department of Foreign Affairs and Travel (DFAT) provides warnings, including “do not travel” to certain countries.  If you intend on travelling, we suggest you contact us beforehand to check if your cover will remain unaffected.

The advisories highlight potential threats to security, safety and health that you could face at your destination, and counsel on local laws that may differ from those at home. To ensure you are protected, we recommend that you still check with your insurer before travelling overseas to make sure you are covered, even to low-risk destinations.

Make sure your insurance is up to date

Travel to many destinations can be risky, so it is a good idea to have your affairs in order before you go. Life Insurance can help to provide financial security for your loved ones in the event of your death.

Income Protection Insurance can help you to cover the costs of living if you are unable to work due to illness or injury. For Australian workers heading overseas to work, provided your cover remains in-force, you will be eligible for Income Protection benefits.

However, in the event of an Income Protection claim there may be additional requirements and conditions should you be working overseas. If you are moving overseas for work, either temporarily or for an extended period, we recommend you check with your insurer what additional requirements may be placed on your cover.