If it’s your first time buying life insurance, some of the terms and jargon can be confusing – but at Direct Cover, we’re here to make it straightforward. Put simply, Life Insurance works by providing your loved ones with a cash lump sum when you pass away. This pay out can be used for anything, including mortgage repayments, bills, funeral costs or just as a gift to leave to your family. When you take out a policy, you choose a benefit amount and pay a regular premium to keep your policy in place. Should you pass away, your loved ones can make a claim on your policy to receive your benefit amount you’ve provided.
Do I need it?
You may need life insurance if you have dependents, outstanding debts, or financial responsibilities, as it can help ensure your loved ones are financially secure if you pass away. It might be best to evaluate your family's financial needs, consider debts and long-term goals, and assess any existing cover that you have before you consider taking out a new policy. Generally, if your passing would cause financial strain, life insurance could offer some peace of mind and protection.
What are the benefits of life insurance?
For many people, the main benefit of life insurance is the peace of mind it brings. It can set your mind at ease to know that you’ve secured some financial support for your loved ones if anything should happen to you. However, when you choose Direct Cover Life Insurance you can expect a variety of specific benefits:
- Cash payout - Get up to $1.5 million life insurance benefit paid straight to your loved ones (depending on your age when you apply).2 It can be a simple way to help protect the financial future of the ones you care about most
- Terminal Illness coverage - Get a 100% early pay out of your life insurance benefit amount if you are diagnosed with a Terminal Illness.3 This can help you cover medical expenses or spend time with your loved ones
- Straightforward claims - Our claims process is designed to be simple, and our Australian-based claims specialists are on hand to help your loved ones with cover backed by an independent, Australian-owned insurer
- Immediate cover - You're covered from day one for death and terminal illness2
- Easy to apply - Australian residents aged 18-70 can apply with no medical exams, blood tests or complicated forms. Simply answer some health and lifestyle questions, and you're all set. You can arrange everything over the phone
- Lower premiums for non-smokers - If you're a non-smoker you’ll enjoy lower premiums4
- Pay fortnightly or monthly - Pay how it best suits you, choose fortnightly or monthly at no extra cost
- Trust - Our customers can have peace of mind that Direct Cover is part of a global network whose brands have been chosen by over 500,000 customers globally and are rated 'Excellent' by thousands of customers on Trustpilot1
- Exclusive - Direct Cover Life Insurance is backed by an independent, Australian-owned insurer and is exclusive to us. You can't buy it anywhere else
- Free Will Kit - Let them know your final wishes, on us. Receive a Free Will Kit when you take out a policy
What should you check before getting life insurance?
Before getting a life insurance policy, there are several things you might want to think about. Some of these points could help you make key decisions about your policy.
- Financial needs: Assess your family's financial needs, including debts, living expenses, education costs, and any other financial commitments
- Cover amount: Once you’ve thought about your financial needs, decide on a cover amount to provide your loved ones with the financial protection they need
- Premiums: Think about how much you could comfortably afford to pay when it comes to a fortnightly or monthly premium
- Beneficiaries: Decide who you would like to receive the benefit amount if you should pass away; you can name one or more people as a beneficiary on a Direct Cover Life Insurance policy
Some important things you should know
- Direct Cover Life Insurance is an insurance policy, not a savings or investment plan.
- Your chosen benefit amount may not cover all your outstanding financial commitments and expenses upon your death, or the costs associated with a terminal illness. You will need to carefully consider your level of cover to ensure it suits your needs.
- The benefit amount will not be paid if you die or are diagnosed with a Terminal Illness3 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date. Refer to the Product Disclosure Statement for full details.
- With Direct Cover Life Insurance, your premiums will be recalculated based upon your age and your benefit amount each year on the policy anniversary. This means your premiums will generally increase as you get older. This yearly premium change will also reflect the 3% increase to your chosen benefit amount due to the Automatic Benefit Amount Increase feature, designed to help your cover keep up with rising living costs. You can decline this feature by informing us if you don’t want it.
- If you change your mind within 30 days from the purchase date ("cooling-off period") and no claim is made, you may cancel your policy and receive a full refund of any premiums paid. If you cancel your policy after the cooling-off period, you do not receive your premiums back, nor will you be entitled to any benefit amount.
When is a good time to take out life insurance?
The “right” time to take out life insurance will vary depending on the person and their circumstances. Some people may begin to consider a policy following a big life event, such as getting married, starting a family or buying a home. Generally, the earlier you can secure life insurance, the better – the younger you are at the beginning of your policy, the higher the benefit amount available to you. You can usually secure a lower starting premium when you’re younger, too.
How much do I need?
We all have different needs, so before you take out a policy it can be a good idea to think about what expenses your loved ones might need help with. Here are a few things you could consider:
- Any debts you have
- School fees and future education expenses for children
- Your mortgage or car repayments
- Potential bills that could come up
- Your income, particularly if you are the main breadwinner
- The cost of a funeral service
How much does it cost?
There are a few different factors that will inform the cost of your Direct Cover Life Insurance policy. This includes:
- Your age
- Your gender
- Your smoker status
- Your health and lifestyle
- Your chosen benefit amount
What does life insurance cover?
With Direct Cover Life Insurance, you’re covered from day one for death and terminal illness.2 So, you can have immediate peace of mind and get back to enjoying life with one less thing to worry about.
What does it not cover?
You’re not covered if you die or are diagnosed with a Terminal Illness3 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date.
You are also not covered if you die or are diagnosed with a terminal illness due to an agreed special term on your policy that specifically excludes an event or condition leading to the claim.
Refer to the Product Disclosure Statement and if applicable, the Policy Schedule, for full details.
Am I eligible?
If you’re an Australian resident aged 18 to 70, you’re eligible to apply for Direct Cover Life Insurance. It’s easy to apply, with no medicals, blood tests or complicated forms. We’ll just ask some health and lifestyle questions to determine whether you’re eligible for cover. If you’re approved you can get up to $1.5 million of cover2, depending on your age when you apply.
How do I apply?
You can apply for a Direct Cover Life Insurance policy over the phone. Our friendly, professional team are here to answer any questions you might have, and help you through a smooth application process. You can reach us on 1800 583 675 Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.