Direct Cover Life Insurance FAQs

With a Direct Cover Life Insurance policy, you choose a benefit amount with a premium that you can afford. There are no medical or blood tests needed to apply, we just ask some health and lifestyle questions. If you continue to pay your premiums, you can keep your cover for life. So, you’re protected from the day you buy your policy until the end of your life.

For full details on how Direct Cover Life Insurance works, please refer to the Product Disclosure Statement.

To get a quick quote, simply call our team of life insurance specialists on 1800 583 675. We’re available Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.

You can choose a benefit amount between $100,000 and $1.5 million.¹ The amount you can apply for will depend on your age at the time of applying. Here are maximum benefit amounts you can apply for based on your age:

• Age 18 to 45 – up to $1.5m
• Age 46 to 55 – up to $1m
• Age 56 to 60 – up to $600,000
• Age 60 to 65 – up to $300,000
• Age 66 to 70 – up to $200,000

If you’re an Australian resident aged 18-70, you can apply for a Direct Cover Life Insurance policy over the phone. One of our friendly team members will help you through the process. There are no medicals, blood tests or complicated forms to fill out, simply answer some health and lifestyle questions. You can book an appointment time for us to call you or give us a call on 1800 583 675. We’re open Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.

If you have loved ones that depend on you and would struggle financially, should you pass away or if you would want some financial support if you were diagnosed with a terminal illness, Direct Cover Life Insurance could be something to consider. It can be a straightforward way for you to help protect the life that you’ve built for you and your loved ones.

Direct Cover Life Insurance is available to Australians aged 18 to 70 and depending on your age when you apply you could get up to $1.5 million in life insurance benefit paid directly to the ones you care about most.¹ It is important that you consider your circumstances and make your own decision on whether life insurance is suitable for you and if you are unsure, consider seeking professional financial advice.

• 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 Illness² 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. 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.

The answer to this question will depend on your own personal circumstances. As part of getting life insurance, you should think about what your cover will help protect. You should think about how much debt you have, how much your mortgage repayments are, or any potential medical bills should you be diagnosed with a terminal illness. You can also consider other financial commitments that may not be satisfied when you pass away or are diagnosed with a terminal illness, such as supporting dependents, school fees and future education expenses, or whether you want to leave an inheritance behind for your family.

Please note we do not provide personal financial advice, so you will need to consider your personal objectives, financial situation, or needs and make your own decision. You should seek independent financial advice, if required.

Direct Cover Life Insurance is a lifetime policy. That means that provided you pay the premiums, it will last for your whole life. If a valid claim is paid or you decide to cancel your policy or stop paying your premiums, your cover will end.

Your premium is recalculated to reflect your age and your benefit amount each year on your policy anniversary. This means your premium will generally increase as you get older.

Additionally, your premium will also increase each year due to the optional Automatic Benefit Amount Increase which is intended to help your cover maintain its value and offset some of the potential impact of inflation on your policy, unless you have chosen to opt out of it. With this feature, your benefit amount increases each year on the policy anniversary by 3% of your chosen benefit amount.

Paying your premiums on time is essential to maintain your cover. If you feel you might not be able to pay your premiums, it is important for you to get in contact with us as soon as possible. We’re here to help and can discuss some of your options over the phone.

 If a premium payment remains unpaid for more than 30 days from the date it was due, your policy will be cancelled. If your policy is cancelled due to non-payment of premium, your cover under the policy will cease and no amount will be payable for any event that occurs after the date of cancellation.

Upon an approved claim, the benefit amount will be paid to you (in the case of a Terminal Illness claim) or to your chosen beneficiary/ies (in the case of a death claim). If no beneficiaries are nominated, the benefit amount will be paid to your estate or the legal personal representative of your estate, whichever is appropriate.

To make a claim, your loved ones will need to get in contact with us as soon as possible. Our specialist team will help your family through the process. Our team will request some documentation from them. Once that has been submitted it will be processed by the claims team. You can find more information about the claims process here.

No, it is up to you or your legal beneficiaries to decide how to use the money. If there is something that you would like the payout to be used for after your passing, you should discuss this with your loved ones when you take out your policy and note it in your will.

When you die, generally most debts you have must be paid out of your ‘estate.’ Your estate is everything owned by you at the time of your death. This includes all personal property, assets and real estate, but may exclude any property which you jointly own with another person. Your Executor will still have to pay your debts out of the assets you leave behind. If you have joint debts such as a home loan with your partner, they may be left with the responsibility to pay this debt.

You should consult a legal professional if you wish to enquire about how your debts will be handled when you pass away.

A benefit amount will not be paid if you die or are diagnosed with a Terminal Illness² 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.

A benefit amount will also not be paid 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.

Also, if you fail to comply with your duty to take reasonable care to not make a misrepresentation, your policy may not be valid, and this could result in the payout being denied. A misrepresentation may include a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth.

Please refer to the Product Disclosure Statement and if applicable, the Policy Schedule, for full terms and conditions, which also includes information on your duty to take reasonable care not to make a misrepresentation.

Life insurance payouts are generally not taxed in Australia. However, depending on your individual circumstances, taxation laws may affect you differently and so you should consider seeking professional tax advice on your own situation.

Yes, you can get Direct Cover Life Insurance however your smoker status will directly affect the cost of your policy and may result in higher premiums. We consider you to be a smoker if in the last 12 months you have smoked or used nicotine replacement products.

Life can be unpredictable. Consider what your family relies on you for, and how they might manage financially when you are no longer here or have been diagnosed with a terminal illness.

It is important that you consider your circumstances and make your own decision on whether life insurance is suitable for you and if you are unsure, consider seeking professional financial advice.

You can refer to the Product Disclosure Statement for full policy terms and conditions.

No, you cannot purchase a Direct Cover Life Insurance policy for someone else. The policy owner must be the life insured.

If you complied with your duty to take reasonable care not to make a misrepresentation at the time of your Direct Cover Life Insurance application and had answered all our questions truthfully, accurately and completely, your policy will not be cancelled if you become ill.