How does Life Insurance cover work?

Welcome to NobleOak’s new video providing insights on Life Insurance.

This video answers one of the questions we get asked regularly at NobleOak: How does Life Insurance cover work?

Life Insurance cover (also known as Death or Term Life Insurance) pays a set amount of money as a lump sum when you die. Most term life policies will pay out a lump sum of money if you are diagnosed with a terminal illness and given 12 months to live. If the payout is made and you recover, the money doesn’t have to be returned.

If you do die, the money will go to the people you nominated as beneficiaries, such as family members, who can then use it to help pay off debts. For instance, the money can be used to help clear a mortgage, household bills, fund the costs of the children’s education, or provide an ongoing income for a number of years. In fact, the funds in the event of a claim can be used for any purpose.

At NobleOak we offer comprehensive fully underwritten Life Insurance – this means when you apply for cover we ask you more health, occupation and pastime questions, and may require a medical examination. If the doctor’s report or blood test is required – we arrange these at our cost. This process can take a bit longer upfront, but most importantly, we take all the worry away so there is more certainty at claim time.

Your premiums are calculated based on things like your gender, age, smoking status, occupation, health, and lifestyle status.

Your policy is renewed annually, with premiums usually increasing as you get older (commonly known as ‘stepped premiums’) and as your level of cover increases (commonly known as ‘indexation’), to keep up with inflation.

Usually, only a death certificate and claim form is required to initiate a claim. Additional information may be required from any medical providers you consulted prior to death.

At NobleOak we offer comprehensive, award-winning Life Insurance cover with a sum insured amount that suits your needs and budget up to $15,000,000. We guarantee to renew your cover up to age 99 and if you need to claim we’ll advance $15,000 to assist with funeral expenses.

At NobleOak we believe in putting our clients’ needs first and we are not aligned to any of the banks or large financial institutions. We believe Australians should have access to quality, affordable Life Insurance cover that you can rely on in order to protect your lifestyle and family’s future.

To find out more about how the different Life Insurance options you can choose from download our free Life Insurance Guide. To work out how much cover you need, try our free online Life Insurance Calculator.

If you would like to know more about Life Insurance, please refer to the “Need help” section of NobleOak’s website, or other websites, such as ASIC’s MoneySmart site.

To find out more about how Life Insurance works view this video.


Tatyana Marfenko

02 November 2018 - 5 minute read