Life Insurance Guide
Help safeguard your way of life
With or without kids, you still have immediate and ongoing expenses to cover. If you were unable to work due to a serious injury or illness, or perhaps you pass away before your time, it’s a good idea to have Life Insurance so that your relatives and friends don’t have to come to your rescue or endure financial hardship by taking on any unpaid debt you may have.
Did you know?
More than three in four Australians
are diagnosed with a serious illness during their working lives.
ABS, January 2013
Sometimes when you hit a certain age you start to think about whether you have everything in place should the worst happen. You may start to question whether your superannuation or Life Insurance is enough. Will it cover all of the debts you leave behind?
Unexpected illnesses and injuries can mean a loss of income and increase in medical expenses. Help maintain your independence with Life Insurance.
Consider if either of the below products could help safeguard your way of life and prepare you and any dependants for the future:
Provides a lump sum payment to a beneficiary of your choice or your estate
Multi-life policy
5% discount
on Life Cover for the youngest life insured
You may think death is a long way away from your doorstep, but nobody knows what could happen tomorrow. If you did leave your family behind, be it your parents, brother, sister, or kids, it would be better to leave them with a legacy rather than personal debts that they’ll have to manage.
Life Insurance may help cover your final expenses and personal debt. And if you’re a parent, it means your kids will be cared for. That way, your aging parents, friends and relatives can move forward more comfortably.
Policy document downloads
Helps protect your lifestyle if you’re sick or injured
Existing AAMI customers
receive a 5% discount
for AAMI Income Protection Insurance
If a nasty surprise put you out of work due to injury or sickness, are you able to keep everything afloat? Without a regular income, medical bills (which may run into the thousands) and everyday expenses can make the financial pressure incredibly difficult. And what about your rent or mortgage?
Receive a monthly benefit if you are injured or sick and unable to work to help take the financial burden off the people you love to help cover your immediate and ongoing expenses. That way, you can focus on more important things, like a speedy recovery.
Policy document downloads
Not sure how much cover you may need?
Savings hack!
All long-term insurance should allow you to select Inflation Protection cover, to help protect against the rising cost of living.
You don’t always have to, but your policy will probably have more exclusions if you don’t provide it.
Unfortunately, you're not usually covered if you’re visiting a country that Australian Foreign Affairs have listed as dangerous.
Life cover included in your super may only cover you up until the age of 70.
Life & Income Protection Insurance
Working out how much Life Insurance cover you’ll need really varies across each person. One approach is to think about how much you can realistically afford to pay for cover each month, taking into consideration your existing expenses. An alternate approach may be to consider your current debts and future expenses like your mortgage or rent, living expenses, child care costs, schooling fees, etc.
The Life Insurance calculator may help you work out how much cover you and your family may want to consider. You can then use that information to get a more accurate Life Insurance quote.
Most super funds offer at least a basic level of life insurance, as well as income protection and Total Permanent Disability (TPD) insurance to protect members and their families from the financial hardship of death or a terminal illness.
The level of cover and types of insurance provided through your super are limited. Payments are also sometimes delayed after you’ve made a claim, and coverage ends after you reach a certain age (usually 65 or 70). Read more about the pros and cons about using the life insurance included with your super fund at Money Smart.
Yes, if you hold other AAMI branded Insurance policies such as car insurance, we will apply a 5% discount on your AAMI Life Insurance premium for the life of the policy.
In addition, if you add another adult to your policy, the youngest person will receive a 5% discount.
For the Sickness and Injury cover, it depends on the benefit period you have chosen. Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time.
You can claim as many times as you need over the life of the policy. The payment of benefits is subject to the relevant terms that apply to your policy, including any exclusions or limitations – check out the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) to find out more.
Yes, you can typically claim a tax deduction on income protection insurance premiums. If your income protection is part of an insurance bundle, you will only be able to claim on the income protection portion of premiums. If you receive an income protection payout, you should declare this on your tax return. You can confirm your individual tax deductions with your financial accountant by checking the ATO website.
If you suffer from the same or related sickness or injury that you have previously claimed for within 6 months of your last benefit being payable, we will recommence benefit payments without applying a new waiting period. These benefits will be added to the remaining benefit period to ensure the maximum payment under the benefit period is not exceeded. If you’ve made a full recovery and there is more than 6 months between claims, then you will commence a new claim and the benefit period will restart.
