Frequently Asked Questions

When you take out a life insurance policy you are providing your family with the peace of mind that if you pass away or become terminally ill, they will have help to cope financially.

A life insurance payout can help your family with any outstanding debts, general expenses and managing their finances at a difficult time.

There is a common misconception that if you have a pre-existing medical condition your insurance application will automatically be declined. We’d like to debunk that myth! While insurers will certainly take medical conditions into consideration, every application is carefully considered based on a range of factors.

Health will affect your insurance application in different ways, depending on the insurance you are applying for. Let’s take a look.

What is a Pre-existing Medical Condition?

Pre-existing medical conditions are defined differently by different insurers. It's always best to check with the individual insurer to understand exactly how it is defined with regards to your policy or application. Generally, a pre-existing medical condition is accepted to include historical illnesses or injuries you have received medical attention for, over a prolonged period.

Examples of pre-existing medical conditions include:

• Heart Disease
• Diabetes
• Asthma
• Cancer
• Depression, or other mental health conditions

Before approving an insurance application, insurers will generally take into account a wide range of personal and lifestyle circumstances when they are considering your insurance application, including pre-existing medical conditions. Age, height, weight, medical history, occupation, family health history and smoking status will also be taken into account.

Will I need to pay more for life insurance?

You may need to pay a higher premium rate (known as a ‘premium loading’) if you have pre-existing health issues when you apply for insurance, whether it’s income protection, trauma insurance, life insurance or TPD insurance.

This cost covers the extra risk that the insurer is taking on, alternatively, the insurer may decide to exclude any claims related to your existing condition from claim. This is known as an ‘exclusion’ on the policy.

Trauma, TPD Insurance and Health

Trauma insurance is designed to cover you if you are diagnosed with a specified medical condition such as heart attack, stroke or cancer.

Total and Permanent Disability insurance (TPD) provides a payment if you become totally and permanently disabled and unlikely to ever return to work.

As with income protection and life insurance, when applying for Trauma and TPD insurance, the insurer will usually take into account a range of personal and lifestyle circumstances; such as family medical history, when they are considering your insurance application.

Life Insurance and Health

All life insurance policies compared by Lifebroker are underwritten, which means an insurer will take into account your personal and lifestyle situation.

Lifebroker can help you understand your options with a cover pre-assessment, which means you can understand your options from some of Australia’s leading life insurers before applying for cover.

To learn more about your cover options, give our team of qualified consultants a call on 13 54 33.

Getting the right amount of cover is paramount when it comes to comparing and choosing insurance. If you have too little cover your loved ones may not be adequately protected if they need to claim, and having too much can mean you are paying more than you need to in premiums.

How much cover you need depends on a lot of factors. Some of these factors include (but are not limited to):

Your age

Are you thinking of taking out insurance as a young adult or at retirement age?

You and your family’s health and medical history

Are you in good shape? Do you smoke or drink alcohol? What medical conditions do you currently have – and what illnesses have affected your family in the past?

Your occupation and salary

Do you have a job that exposes you to danger, such as a role in the mining industry or police force? Also based on your salary, what premiums can you afford?

The number of dependents you have

How many children do you have? And how independent are they? Are they old enough to financially take care of themselves, or do you need a level of cover that will help get them through school and/or university?

Any outstanding debts

How much do you owe? And to what extent do you want to ensure your family isn’t burdened with any costs in the unfortunate case you become seriously ill or die?

Your current lifestyle and living situation

What are your interests? Are you a homebody or the adventurous type that likes to engage in high-risk activities such as rock-climbing or scuba diving? And do you travel a lot for work and/or leisure – and if so, how often and by what means?

Figuring out a level of cover that may suit me

At Lifebroker, we have developed an easy-to-use online insurance cover calculator to help you determine how much cover you might need. It takes into account a range of factors listed above to help you determine a suitable amount of cover for you. By asking a few basic questions, we can provide you with a reasonable estimate of the life insurance cover amounts that you may want to consider for your immediate needs, cover any debts and meet your current financial commitments should something happen to you.

What else should I consider when buying insurance?

Along with assessing a suitable amount of cover, it’s also a good idea to review other insurance options available that may be relevant to you. For example, you might be considering life insurance (great for protecting your family should you die or become seriously ill), but what about other insurances that are just as important? Policies such as income protection insurance, total and permanent disability (TPD) insurance and trauma cover can help provide you with financial assistance should you stop working due to illness or injury.

Still not sure?

Get in touch with Lifebroker. We’re here for you. Chat to one of our consultants by calling 13 54 33 during business hours or email us anytime.

One of the most common questions we are asked here at Lifebroker is why do I need life insurance or income protection? There are many types of insurance, which are designed to protect you in different ways, but they have one thing in common — they exist to provide peace of mind and financial security for you and your family.

We have put together this no-nonsense guide to help you understand the benefits of each type of insurance. And of course, if you still have questions just give our specialists a call on 13 54 33.

• Income protection
• Life insurance
• Total Permanent Disability insurance
• Trauma insurance

Income protection insurance

Income protection provides you with up to 70% of your income if you become unable to work due to illness or injury.

Having income protection in place can offer a real lifeline if you’re sick or injured and unable to work, especially if you have monthly outgoings such as loan or mortgage repayments, bills or tuition fees.

It provides you with peace of mind, knowing that your lives can continue on after an injury or illness without the additional stress of worrying about financial consequences.

Life insurance

In general terms, life insurance provides your beneficiary (the person who you have assigned to receive the benefit) with a lump sum payment in the event of your death. A lump sum payment is also is paid when you are diagnosed with a terminal illness with only 12 months to live.

When it comes to deciding if you need life insurance it’s good to think about all the things you currently pay for and who you support. If something were to happen to you how would your family cope with expenses such as mortgage repayments, car repayments or school fees in the future?

At a difficult time, life insurance can help your family cope financially. From funeral costs to unpaid debts, there will be costs that your family may not be prepared for. Life insurance can help provide financial relief and support, with some policies featuring benefits such as grief counselling and financial planning assistance.

Total & Permanent Disability insurance

Total & Permanent Disability (TPD) insurance provides financial assistance should you be permanently disabled and unlikely to ever return to work.

Becoming totally and permanently disabled through illness or injury has an enormous impact on anyone’s life, as well as those who are close to them. Along with everyday expenses, there may be a number of changes and lifestyle adjustments, which require significant financial investment such as home modifications or rehab treatments.

Having TPD insurance in place means that at such a difficult time you and your family have the help you need to cope financially.

Trauma insurance

Suffering a major trauma event such as heart attack, cancer or a stroke can have a financial impact that you and your family would have to deal with.

Trauma insurance can provide financial support for medical costs, rehabilitation treatment, and help cover bills and other expenses so you can focus on your recovery.

If you’d like to find out more about the benefits of life, trauma, TPD or income protection insurance, give our specialist consultants a call for a confidential chat on 13 54 33. We’re here to help.

Income Protection

Income Protection premiums are tax deductible in Australia, as they are treated as assessable income when the benefits are claimed. However, this can vary depending on the structure of your policy and your personal circumstances, for example if your policy is held within your superannuation fund.

If your Income Protection is held through a superannuation fund, it is likely that the fund will claim the tax deduction on your behalf and you will see the benefit in your fund, rather than your tax return.

Life Insurance

Life insurance can have many different tax treatments depending on the policy, whether it is held through a superannuation fund and your personal circumstances. It is always best to carefully read the Product Disclosure Statement to understand how your policy works.

The same applies to Total & Permanent Disability (TPD) and Trauma Insurance, the tax treatment of these types of cover can also vary greatly.

How do I find out more?

A Lifebroker Insurance Consultant can provide you with the facts around tax and your life insurance premiums, but for general and personal tax advice, it is always best to speak with a tax specialist or visit the Australian Tax Office website for further information.

Depending on your individual circumstances, it is possible to get cover after recovering from prostate cancer. Each case is different and the insurance provider will assess each application individually to get an understanding of what cover could be offered to the person applying.

Prior to this application, Lifebroker can help complete a pre-assessment. Pre-assessments for people who have previously experienced cancer do require an extensive amount of information and you may be asked to send through a copy of the histopathology report to get a better understanding of your cover options with one of our life insurance partners.

When applying for life insurance with a history of cancer, there are a few possible outcomes depending on your situation:

1. A loading may be applied to your policy and, if chemotherapy or radiotherapy was required during your treatment, there is likely to be a percentage increase to your premium for the life of the policy.
2. Another type of loading that can be applied to your premium is a loading per thousand dollars insured. This would be due to how recently the cancer was experienced and would be applied for a set number of years, and then automatically removed.
3. In some circumstances, a combination of a percentage loading and a loading for every thousand dollars insured may be applied to the policy.
4. In some cases acceptance at standard rates can occur; where no loadings or exclusions are applied to your policy.
5. There is the possibility that your application may be declined, however our insurance consultants can help you understand the potential of a decline prior to your application with a pre-assessment. Although a pre-assessment is not a guarantee of the outcome you can expect, it can provide you with a better understanding of your options with our life insurance providers.

To learn more about your options from our life insurance partners, please contact a Lifebroker insurance consultant today on 13 54 33.

If you have tested positive for HIV, there are certain criteria that you will have to meet in order to be considered for any amount of Life Insurance protection.

While it may be difficult to find comprehensive Life Insurance and Income Protection cover as someone living with HIV, there may be other options available to you.

Firstly you will need to provide medical evidence of your HIV status.

You will need to be able to show that your CD4 Count is greater than 350 and that your Viral Load is registered as 1000 copies or less. It is generally suggested that “undetectable” is the best possible outcome for a person living with HIV who wants to access Life Insurance.

Most insurers will require you to provide evidence of having been on HAART (Highly Active Antiretroviral Therapy), in order to demonstrate that you are actively taking part in ongoing treatments to both increase your CD4 Count and decrease your Viral Load.

You will also be asked to provide evidence of any personal history of mental illness.

In regards to the levels of cover that may be afforded to you, the insurer may decide when assessing your application that the amount that you can be covered for will be limited. It will also be likely that a limit will be placed on the duration of your policy. People with well-managed HIV are generally only able to be offered between 10 to 20 years of active cover.

Most insurers will place a loading on a policy due to the increased risk associated with providing cover to a person with a history of illness. For people living with HIV, even if it is being well-managed, it is likely that a loading will be applied of around 150% to your premium.

Another option available for those living with HIV is making an application for Accidental Death Cover alongside their application for Life Insurance. Accidental Death Cover is not medically underwritten and therefore your application is not affected by your current or previous medical history.

It is important to note that every application is assessed by an insurer on a case-by-case basis using its own underwriting guidelines, and therefore the insurer can only make a decision on what level of cover can be offered after looking at all of your personal circumstance as well as the factors listed above.

Lifebroker has more than 15 years’ experience in helping Australians across the country access the information they need to make confident decisions about their financial futures, to learn more please call a qualified Lifebroker insurance consultant today.

Underwriting refers to the process that insurance companies use to assess the eligibility of a customer to receive their products.

There are different types of underwriting. The two that mainly concern life insurance are medical underwriting and financial underwriting. When applying for life insurance products, you will need to complete an application form. Most comprehensive products will require you to complete a series of questions regarding your health and financial history. Insurance companies will also require information about your work and any sports and pastimes that you might participate in.

Medical underwriting

Medical underwriting is the process of assessing your medical history. For example; if you disclosed that you had a history of high blood pressure, the underwriter at the insurance company might request a report from your doctor. Requesting information from your doctor or any relevant medical professional cannot be done without your permission. All medical information gathered is strictly confidential and this is only viewed by those who have a direct role in assessing your application. Medical examinations are not always necessary, but when they are requested, it is only to help you.

Financial underwriting

Financial underwriting is more commonly used when applying for an income protection policy. The purpose of financial underwriting is to make sure that the cover amount which you apply for is appropriate for your financial situation. It makes sure you don't over insure yourself, and keeps your premiums down. As with medical underwriting, you can be sure that the information disclosed is completely confidential.

Once all the information required has been gathered and the underwriters at the insurance company have made their assessment the applicant will receive notification of the assessment which will include the outcome.

Misconceptions

It’s a common misconception that underwriters are in the business of denying cover for people. It’s the underwriter’s job to assess a person’s situation and then offer terms based on the risks. Underwriters are there to help you and they will not deny anyone cover unless it is necessary.

If a medical examination reveals an above average likelihood that you will make a claim, it's more likely that a loading or an exclusion will then apply then that your cover will be denied altogether.

You’re looking for protection for your family but you’re unsure of what you need. You may be unsure of the differences between Life Insurance and Life Assurance, so what’s the difference?

In Australia, Life Assurance is the same as Life Insurance and provides a lump sum payment when the person insured passes away.

There are four main types of life insurance available:

• Life Insurance
• Total & Permanent Disablement (TPD) Insurance
• Trauma Insurance
• Income Protection Insurance

Life Insurance: sometimes known as death cover, life insurance pays out an agreed lump sum. This is generally in the event of your death, or when diagnosed with a terminal illness with only 12 months to live

TPD Insurance: will pay out an agreed lump sum in the event you become totally and permanently disabled and unlikely to work again

Trauma Insurance: also known as critical illness insurance will pay out an agreed lump sum in the event you suffer from a medical condition covered by your policy. The number and types of conditions covered vary between products, so it’s great to review the Product Disclosure Statement to see which ones right for you.

Income Protection Insurance: pays up to 70% of your monthly salary if you are unable to work for an extended time due to illness or injury.

In order for you to have assurance about you insurance cover it is best to speak to a qualified insurance adviser who can help make a confident decision for your life insurance needs.

Loan protection insurance is offered by a few companies and generally only covers loan repayments if you’re unable to work or if you pass away.
On the other hand, life insurance and income protection provide further options to protect your lifestyle not just your loan.

More Flexibility with Life insurance

At Lifebroker we can help you find protection for your loan or mortgage in the form of life insurance, income protection or a combination of both. With life insurance the amount of cover you can select can be unique to your personal situation. Loan protection insurance does not offer this flexibility as usually the maximum amount of cover available is equal to the loan amount or lower. Life insurance also allows you to nominate a beneficiary who will receive the benefit if you pass away. Depending on your level of cover, this can be more than the remaining loan or mortgage amount, which can be a huge financial help to your family.

Income protection also provides peace of mind

Generally income protection also offers a more flexible option than that of loan protection insurance. Income protection insures up to 70% of your annual income in the event that you are unable to work due to any sickness or any injury for an extended period. If claimed the monthly benefit is not restricted to paying your mortgage or loan repayments, but it can also assist in paying for medical expenses and other daily living costs.

The main difference between loan protection insurance and life insurance or income protection is flexibility. These products can provide additional choices when protecting your lifestyle and family.

A lot of people tend to compare health insurance and life insurance to try and decide between the two. However, when you look at the two types of insurance closely, you'll see it shouldn't be a matter of deciding which one you need, as they offer very different services. The main differences between health and life insurance are:

• What you are covered for
• When you are covered
• How much you can be covered for

Health insurance

People take out health insurance to assist with the cost of medical bills, as the insurers tend to cover all or part of the costs. It can be used for standard procedures like a general doctor’s visit or a pregnancy, but it can also be used to cover the costs in cosmetic surgery. Taking out private health insurance can allow you to have your choice of a private room in hospital and can permit you to have your choice of doctor.

Advances in technology have allowed us to extend our standard life expectancy, which can mean lengthy hospital stays or expensive medical bills if we do contract a debilitating illness or injury. Health insurance offers coverage for a wide range of procedures and treatments when these problems eventually occur.

Life insurance

Unlike health insurance, life insurance is an amount of money you choose that you insure to cover your debts and take care of your loved ones when you pass away. People take into account debts such as your mortgage or rent, personal loans, credit cards, and future education costs if you have children. This can serve as a replacement income for your family if they were relying on yours, or it can be used to pay off all your debts in one go. A lot of companies will also pay out part of the lump sum early to cover funeral expenses.

Which is more important?

As you can now see, there is a big difference between the two types of insurance. It's not a matter of picking one or the other. You need to assess your individual situation and decide what is right for you.

If you've done a bit of research into the options available for life insurance, you would have seen that TPD and trauma policies are available as linked or stand-alone policies. When you get a quote, you will find that one option is more expensive than the other, but why is this?

If you claim on stand-alone TPD or trauma, the other insurances are not affected by the payout. On the other hand, if you claim on a linked policy, the other insurances will reduce.

For example, if you had $500,000 of life insurance and $300,000 of linked TPD and you made a TPD claim, the life insurance would reduce to $200,000. If the TPD were a standalone policy, the amount of life insurance would remain at $500,000.

If you select a linked policy the premiums are lower. Stand-alone premiums are higher because you have the ability to claim and not have your other insurances affected.

Generally, no blood tests are required when applying for life insurance cover. However, upon application if there is something that the insurance company is concerned about and they want to further investigate, the insurance company may request blood tests to be completed.

The reason why the insurance companies request blood tests when assessing life insurance applications is so that they are fully aware of the risk that they are taking on when offering an applicant insurance. It is also to ensure that everything is disclosed to them before your policy is completed. Some people do not realise that this is actually to benefit them so that there are no issues if a claim needs to be made in the future.

Another factor which could result in the insurance company requesting blood tests for life insurance is the amount of cover that you want to insure and your age.

At Lifebroker we don’t compare different life insurance policies solely on price, we also provide you with a snapshot of the different product features and an overview of each company on size and claims paid. This information can help you make a confident decision about what insurance suits you. Get started with your life insurance comparison to find out more.

Income protection cover provides you with a regular monthly payment of up to 70% of your income if you are unable to work for an extended period of time due to illness or injury. Losing the ability to earn an income for any length of time can cause great financial, not to mention psychological, stress. Having financial protection in place can help you maintain the lifestyle you’ve worked so hard to achieve.

One of the most common questions we are asked here at Lifebroker is why do I need life insurance or income protection? There are many types of insurance, which are designed to protect you in different ways, but they have one thing in common — they exist to provide peace of mind and financial security for you and your family.

We have put together this no-nonsense guide to help you understand the benefits of each type of insurance. And of course, if you still have questions just give our specialists a call on 13 54 33.

• Income protection
• Life insurance
• Total Permanent Disability insurance
• Trauma insurance

Income protection insurance

Income protection provides you with up to 70% of your income if you become unable to work due to illness or injury.

Having income protection in place can offer a real lifeline if you’re sick or injured and unable to work, especially if you have monthly outgoings such as loan or mortgage repayments, bills or tuition fees.

It provides you with peace of mind, knowing that your lives can continue on after an injury or illness without the additional stress of worrying about financial consequences.

Life insurance

In general terms, life insurance provides your beneficiary (the person who you have assigned to receive the benefit) with a lump sum payment in the event of your death. A lump sum payment is also is paid when you are diagnosed with a terminal illness with only 12 months to live.

When it comes to deciding if you need life insurance it’s good to think about all the things you currently pay for and who you support. If something were to happen to you how would your family cope with expenses such as mortgage repayments, car repayments or school fees in the future?

At a difficult time, life insurance can help your family cope financially. From funeral costs to unpaid debts, there will be costs that your family may not be prepared for. Life insurance can help provide financial relief and support, with some policies featuring benefits such as grief counselling and financial planning assistance.

Total & Permanent Disability insurance

Total & Permanent Disability (TPD) insurance provides financial assistance should you be permanently disabled and unlikely to ever return to work.

Becoming totally and permanently disabled through illness or injury has an enormous impact on anyone’s life, as well as those who are close to them. Along with everyday expenses, there may be a number of changes and lifestyle adjustments, which require significant financial investment such as home modifications or rehab treatments.

Having TPD insurance in place means that at such a difficult time you and your family have the help you need to cope financially.

Trauma insurance

Suffering a major trauma event such as heart attack, cancer or a stroke can have a financial impact that you and your family would have to deal with.

Trauma insurance can provide financial support for medical costs, rehabilitation treatment, and help cover bills and other expenses so you can focus on your recovery.

If you’d like to find out more about the benefits of life, trauma, TPD or income protection insurance, give our specialist consultants a call for a confidential chat on 13 54 33. We’re here to help.

Income protection provides cover for up to 70% of your normal income, until such time as you’re able to return to work – or at the end of the agreed benefit period on your policy.

At Lifebroker we don’t compare different income protection policies solely on price, we also provide you with a snapshot of the different product features and an overview of each company on size and claims paid. This information can help you make a confident decision about what insurance suits you. Get started with your income protection comparison to find out more.

Underwriting refers to the process that insurance companies use to assess the eligibility of a customer to receive their products.

There are different types of underwriting. The two that mainly concern life insurance are medical underwriting and financial underwriting. When applying for life insurance products, you will need to complete an application form. Most comprehensive products will require you to complete a series of questions regarding your health and financial history. Insurance companies will also require information about your work and any sports and pastimes that you might participate in.

Medical underwriting

Medical underwriting is the process of assessing your medical history. For example; if you disclosed that you had a history of high blood pressure, the underwriter at the insurance company might request a report from your doctor. Requesting information from your doctor or any relevant medical professional cannot be done without your permission. All medical information gathered is strictly confidential and this is only viewed by those who have a direct role in assessing your application. Medical examinations are not always necessary, but when they are requested, it is only to help you.

Financial underwriting

Financial underwriting is more commonly used when applying for an income protection policy. The purpose of financial underwriting is to make sure that the cover amount which you apply for is appropriate for your financial situation. It makes sure you don't over insure yourself, and keeps your premiums down. As with medical underwriting, you can be sure that the information disclosed is completely confidential.

Once all the information required has been gathered and the underwriters at the insurance company have made their assessment the applicant will receive notification of the assessment which will include the outcome.

Misconceptions

It’s a common misconception that underwriters are in the business of denying cover for people. It’s the underwriter’s job to assess a person’s situation and then offer terms based on the risks. Underwriters are there to help you and they will not deny anyone cover unless it is necessary.

If a medical examination reveals an above average likelihood that you will make a claim, it's more likely that a loading or an exclusion will then apply then that your cover will be denied altogether.

TPD insurance provides a lump sum payment if you become totally and permanently disabled due to an illness or injury and cannot return to work.

Total and Permanent Disability Insurance provides a benefit should you become permanently disabled and unlikely to ever return to work. Having the right amount of cover for your needs is crucial: too little could mean you do not have enough funds to cover ongoing everyday expenses if you need to claim, while too much means you could be paying more than you need to.

So how do you know how much TPD cover you need? The answer depends on your personal circumstances, which can include five key categories: income, mortgage, debts, dependents and medical and rehabilitation costs. Let’s take a closer look.

Your income

What is your current income? To what extent do you and your family rely on this income? Could your family cope if that income stopped coming in? How would your lifestyle change? You may also want to consider taking out Income Protection insurance, which can provide you with up to 70% of your income if you are unable to work and is an extra level of protection for you. Even if you don't earn an income, your total and permanent disability can have a big impact on your household. If you were no longer able to perform key daily duties, like cooking, cleaning and driving, how would you and your family's life change? Having a TPD policy can give you choices and options.

Your mortgage

What mortgage repayments do you have? You don’t want to risk losing your home or putting your family under financial stress if you were unable to make your mortgage repayments.

Your debts

What debts do you have? Perhaps you have a car loan? Credit cards? These all need to be considered when choosing your level of TPD cover.

Costs of raising children

The number and age of children that you have will be an important consideration when choosing TPD cover.

How independent are they? Do they rely on you fully, or can they take care of themselves financially? Will they need financial assistance to get through school or university?

Costs of rehabilitation

With a total and permanent disability there may also be house modifications and rehabilitative care required. It’s important to consider what cover you may need to help you adjust to your new lifestyle after claim.

This can seem like a lot to consider, which is why we have built our Life Insurance Calculator that can help you understand what level you may need.

When you know what level of cover you’re looking for, our comparison tool can help you compare TPD insurance options and the different features and benefits available.

Our team of specialists are ready to help, just call 13 54 33 to discuss your requirements in more detail.

At Lifebroker we don’t compare different policies solely on price, we also provide you with a snapshot of the different product features and an overview of each company on size and claims paid. This information can help you make a confident decision about what insurance suits you. When you complete a life insurance comparison we provide an overview of the different TPD product features and benefits also.

The TPD buy-back option is an added benefit that can be purchased under a TPD policy that is linked with your life insurance policy. After you have been paid a claim under your Total and Permanent Disablement policy, this gives you the option to buy back the amount that has been deducted from your life benefit. You have the option to exercise the TPD buy-back one year after your claim was paid.

While some companies include this option as standard, others will charge you extra for it, so it is important to talk to your Lifebroker consultant when comparing cover to understand your buy-back options if your policy is linked. Unlike trauma policies, there is no reinstatement option, meaning that you can only claim once per TPD policy.

If your TPD cover is stand-alone, any claim will not affect your life insurance cover, so you won't need to think about this option.

What’s the definition of TPD?

TPD cover, or total and permanent disablement insurance, pays out a lump sum payment if you’re permanently disabled and unable to work. How this is assessed will depend on what’s outlined in your policy.

Generally, the definition to be able to claim on this insurance is that you are totally and permanently disabled and it’s expected that you will never return to work again in your own occupation or any occupation.

There are different definitions for TPD cover which are important to consider when choosing your TPD insurance cover:

Any Occupation

The Any Occupation definition means that you have to be totally and permanently disabled and unlikely to work in any occupation for a six consecutive months.

This means that you would have to be unable to work in any occupation to be eligible to claim.

For example, if you are permanently disabled and unable to go back to your job on a work site, you may be able to work in an administrative role at head office instead. However, if you are unable to return to any type of work you may be eligible to claim on your cover.

Own Occupation

The Own Occupation definition is specific means that you would be able to claim on the insurance if you were totally and permanently unable to work in your own occupation again; that is an occupation that you’re suited to by qualification, training or experience. This definition tends to be more expensive than the ‘any occupation’ option.

Activities of Daily Living

The definition of activities of daily living refers to things such as feeding, bathing, dressing and looking after yourself. If you are unable to do two of these things in a situation where you are totally and permanently disabled, you may be able to make a claim on your TPD cover.

Learn more about the features and benefits of TPD cover with an online insurance comparison.

If you've done a bit of research into the options available for life insurance, you would have seen that TPD and trauma policies are available as linked or stand-alone policies. When you get a quote, you will find that one option is more expensive than the other, but why is this?

If you claim on stand-alone TPD or trauma, the other insurances are not affected by the payout. On the other hand, if you claim on a linked policy, the other insurances will reduce.

For example, if you had $500,000 of life insurance and $300,000 of linked TPD and you made a TPD claim, the life insurance would reduce to $200,000. If the TPD were a standalone policy, the amount of life insurance would remain at $500,000.

If you select a linked policy the premiums are lower. Stand-alone premiums are higher because you have the ability to claim and not have your other insurances affected.

At Lifebroker we don’t compare different life insurance policies solely on price, we also provide you with a snapshot of the different product features and an overview of each company on size and claims paid. This information can help you make a confident decision about what insurance suits you. Get started with your life insurance comparison to find out more.

Generally, no blood tests are required when applying for life insurance cover. However, upon application if there is something that the insurance company is concerned about and they want to further investigate, the insurance company may request blood tests to be completed.

The reason why the insurance companies request blood tests when assessing life insurance applications is so that they are fully aware of the risk that they are taking on when offering an applicant insurance. It is also to ensure that everything is disclosed to them before your policy is completed. Some people do not realise that this is actually to benefit them so that there are no issues if a claim needs to be made in the future.

Another factor which could result in the insurance company requesting blood tests for life insurance is the amount of cover that you want to insure and your age.

Trauma insurance provides lump sum cover if you are diagnosed with a specified illness or injury. These include major illnesses or injuries that will have a significant impact on a person's life, such as cancer or a stroke.

There are many different individual trauma incidents that can be covered through trauma insurance. Each policy will have a specific list of covered medical conditions and the specific definition of each condition may differ between each insurer too.

The outlined list of conditions and their associated definitions are used when assessing a claim, so it’s important to review the Product Disclosure Statement to understand what you will be covered for before you apply.

At Lifebroker we don’t compare different policies solely on price, we also provide you with a snapshot of the different product features and an overview of each company on size and claims paid. This information can help you make a confident decision about what insurance suits you. When you complete a life insurance comparison we provide an overview of the different trauma insurance product features and benefits also.

If you have the unfortunate luck of falling victim to two different medical conditions while covered by the same policy, you may have the option of making claims for each condition. This is only possible if you take advantage of the reinstatement option available from most insurers.

Once you have already made a claim and it has been paid, it allows you to buy-back your trauma insurance plan after 12 months. Therefore, after 12 months of the previous claim being paid you can make another claim (provided that you suffer another critical illness after the 12 month period).

Underwriting refers to the process that insurance companies use to assess the eligibility of a customer to receive their products.

There are different types of underwriting. The two that mainly concern life insurance are medical underwriting and financial underwriting. When applying for life insurance products, you will need to complete an application form. Most comprehensive products will require you to complete a series of questions regarding your health and financial history. Insurance companies will also require information about your work and any sports and pastimes that you might participate in.

Medical underwriting

Medical underwriting is the process of assessing your medical history. For example; if you disclosed that you had a history of high blood pressure, the underwriter at the insurance company might request a report from your doctor. Requesting information from your doctor or any relevant medical professional cannot be done without your permission. All medical information gathered is strictly confidential and this is only viewed by those who have a direct role in assessing your application. Medical examinations are not always necessary, but when they are requested, it is only to help you.

Financial underwriting

Financial underwriting is more commonly used when applying for an income protection policy. The purpose of financial underwriting is to make sure that the cover amount which you apply for is appropriate for your financial situation. It makes sure you don't over insure yourself, and keeps your premiums down. As with medical underwriting, you can be sure that the information disclosed is completely confidential.

Once all the information required has been gathered and the underwriters at the insurance company have made their assessment the applicant will receive notification of the assessment which will include the outcome.

Misconceptions

It’s a common misconception that underwriters are in the business of denying cover for people. It’s the underwriter’s job to assess a person’s situation and then offer terms based on the risks. Underwriters are there to help you and they will not deny anyone cover unless it is necessary.

If a medical examination reveals an above average likelihood that you will make a claim, it's more likely that a loading or an exclusion will then apply then that your cover will be denied altogether.

A key person insurance policy is owned by an organisation to insure a key member of their business/company. In the event that their insured key person in the organisation suffers a critical illness, is permanently disabled or dies, the policy will provide a lump sum benefit.

Key person insurance protects a company from the loss of a key person within the organisation. These are the people who are central to the running of the business.

In a small business, this could be for example the founders or the company partners. For large organisations the loss of a key person can often mean profitability is affected, and therefore this insurance helps cover this loss.

Both small and large companies can consider key person insurance to protect their business interests.

A key person insurance policy is owned by an organisation to insure a key member of their business/company.

Key person insurance specifically refers to the way a life insurance, total and permanent disability (TPD) or trauma insurance ownership is structured. The basic definitions and benefits provided are the same as policies owned by the individual, with the main difference being the purpose the insurance is to be used for and that the policy is owned by the company, who typically employs the key person.