Life Insurance

Life Insurance pays a lump sum in the event you pass away or are diagnosed with a terminal illness with less than 12 months to live. The funds received from a Life Insurance payment can be used to eliminate debt, pay any medical and funeral expenses and provide for the ongoing needs of your dependants.

Life Insurance is also an umbrella term used to describe the full group of insurance products designed to protect you and your family’s quality of life in the unfortunate event of death, or a severe injury or illness arising. It provides clients with financial peace of mind by easing the financial burden should one of these situations ever occur. There are four primary types of Life Insurance:

• Life Cover (also known as Term Life Insurance) provides financial protection if you were to pass away unexpectedly, by providing your nominated beneficiaries with a lump sum payment.
• Total and Permanent Disability (TPD) Insurance provides a lump sum payment  should you become permanently disabled and unable to work as a result of severe illness or injury.
• Trauma Insurance (also known as Critical Illness Insurance) provides cover if you are diagnosed with one of the specified illnesses (g.Heart Attack or Cancer), or if you suffer a severe injury which leads to Quadriplegia etc. If one of these medical events was to occur, Trauma Cover provides a financial safety net for you and your family, allowing you to focus on your recuperation.
• Income Protection Insurance as the name implies, is specifically designed to cover your income if you are unable to return to work due to illness or injury. Income Protection provides monthly benefit payments, after expiration of the specified waiting period, throughout a period of disability and covers up to 75% of your pre-disability income.

The policies, terms and conditions will vary between the respective Life Insurance providers, and we would always recommend that you read the Product Disclosure Statement (PDS) and fully compare the various covers before you apply for Life Insurance.

For more information about each Life Insurance product check out our Frequently Asked Questions or speak to one of NobleOak’s Life Insurance Specialists on 1300 041 494.

When deciding which Life Insurance cover is right for you the following features should be considered:

• Level of Cover. When selecting how much coverage you will need, it’s important to consider the lifestyle you wish your family to maintain were you to unexpectedly pass away. This may include your current living expenses, any outstanding debt (e.g. mortgage), your number of dependants and any future expenses (e.g. children’s education). This will help you calculate the level of cover you will need to fully protect your loved ones.
  • A good ‘rule of thumb’ to use to calculate a starting point for Life Insurance (Death) cover is a multiple of 20-25 times your salary.
  • This multiple varies for TPD cover (up to 15 times your salary) and Trauma cover (up to 10 times your salary).
• Premiums. Premiums are the regular instalments required to maintain your cover. Your annual premiums are determined by your age and also any CPI increases to your cover. Premiums can be paid either monthly or annually.
• Terminal Illness Benefit. Your Life Insurance (Death) cover will generally include a Terminal Illness Benefit. This benefit allows the Life Insured to access a portion of their Life Insurance benefit immediately should they be diagnosed with a terminal illness and which is likely to result in death within 12 months.

Having the right amount of Life Insurance is important, and yet, many Australian families remain underinsured. Rice Warner, a leader in providing research and advice to superannuation and wealth management industries, recently released a report on underinsurance which highlights that the median level of Life Insurance cover only meets 61% of basic needs which include mortgage debts and basic loans (credit cards etc.) and the ability to sustain current living standards until at least the age of 65.

If the unforeseen were to happen, you wouldn’t want your family to suffer the additional stress of not being able to pay the mortgage or essential ongoing household bills, on top of dealing with the extreme emotional distress. When determining how much Life Insurance you will need it’s important to consider the following:

• Your current debt – i.e. mortgages, personal loans and credit cards.
• The number of dependents you have.
• Your current income (refer to the salary multiples detailed above).
• Future education expenses for your children – i.e. school and university fees.
• Ongoing household expenses, including utility bills, groceries and insurances.
• Your lifestyle costs – sport and music lessons, birthdays and holidays.
• Your childcare and home assistance costs – if you or your spouse is a stay-at-home parent, you may need to cover the costs of employing a carer for the children and someone who can also undertake home duties.

We appreciate it could be difficult to calculate how much Life Insurance you need and what you need to consider however the salary multiples detailed above will be a good starting point for you. You can tailor the levels of cover to your individual circumstances and then adjust according to your budget. Above all it’s most important to ensure your loved ones are protected.

With NobleOak, you have the flexibility to take out Life Insurance cover up to $15,000,000, and this means that no matter your circumstances, we’ve got you covered. If you are still unsure how much cover you need to protect your loved ones our Life Insurance Calculator can help guide you.

Are you ready to take a positive step towards insuring your family’s financial future? Do you want to ensure they will be financially protected if you were to unexpectedly pass away? Applying for NobleOak Life Insurance is easy.

Your first step is to call our Life Insurance Specialists on 1300 041 494 or get a quote online. Although we can’t provide you with any personal advice, we can explain the product features of our products and answer any questions you have relating to our cover, so you can access and obtain the cover you need.

If you know what type of Life Insurance and level of cover you need, we can proceed with your application straight away.

From Quote to Application

So we can provide you with a quote, you will need to tell us a little bit about yourself. Your insurance premiums are based on factors such as your age, gender, occupation, level of cover, health and lifestyle.

As part of the application process, our Life Insurance Specialists will work with you through a number of medical, lifestyle and pastime questions.This usually takes about 15 to 20 minutes. Your response to these questions will allow our Underwriting team to assess your health and all the other issues related to your personal circumstances.

We then tailor our assessment terms to your individual circumstances and we will discuss any required Special Acceptance Terms with you. With this step completed you can be confident in knowing exactly what you are insured for and there won’t be any surprises in the event of a claim.

The Underwriting Assessment Process

In some cases we may need further medical information and also financial details. To ensure this process moves as smoothly as possible, it will help if you have copies of any recent medical reports or blood tests available, as well as the details of any prescription medications you take. This can help to speed up the underwriting process.

In some cases we may need you to undertake a blood test or medical examination. In these situations we will pay for these requirements and a convenient time and place will be arranged with you for these to be done.

Interim Cover While You Wait

When we have completed your full application, we will provide you with Interim Accidental cover while we complete our assessment. This Accident cover includes Death (if applying for Death cover), Disability (if applying for TPD or Income Protection cover), or Trauma (if applying for Trauma cover). It is applicable for up to 90 days after receipt of the completed NobleOak Life Cover application. We will pay up to $1 million to your family in the event of your accidental death, up to $500,000 for TPD or Trauma, or up to $200,000 for Income Protection (depending on the amount of cover you applied for).

When we have approved your application, we will activate your cover and provide you with a Welcome Pack that outlines the details of your cover.When you receive your Welcome Pack, take some time to read through our Life Insurance PDS so you fully understand the features of your new Life insurance cover.

NobleOak’s comprehensive Life Insurance cover allows you to choose the types of cover and also the amounts of cover you want – and you only pay for what you are covered for:

• If you add Total & Permanent Disability Cover to your Life Insurance, then any approved claim for TPD will reduce your Life Insurance cover by the amount of your TPD payment.
• If you add Trauma Cover to your Life Insurance, then any approved claim for Trauma will reduce your Life Insurance cover by the amount of the Trauma payment. However, if you take out stand-alone Trauma Insurance, then any subsequent Trauma claim will not affect your Life Insurance cover.
• Any claim on your Income Protection Cover has no effect on your Life Insurance cover, TPD cover or Trauma cover.

Once issued, NobleOak Life Insurance cover provides for worldwide travel and residence 24-hours a day. Intended travel details within the next 12 months of completion of the Application will be factored into the original underwriting assessment and special terms and conditions will be applied based on these details. So in the future, if you are heading away on the holiday of a lifetime or if your circumstances change and you move overseas, providing you continue to pay your premiums as they fall due and your cover remains in force you can travel with peace of mind.

However, we would always suggest that before you travel overseas, check with your Life insurer to confirm if any conditions or restrictions apply to your cover.

Countries Excluded From Cover

Some countries may be excluded if you intend travelling there, due to ongoing political unrest, war or potential natural disasters. As these are subject to change we always recommend that you always check with your insurer before travelling overseas to make sure you are covered.

If you choose to remain in a country or part of a country where the Australian government has issued a ‘reconsider your need to travel’ or ‘do not travel’ warning, its ‘possible you may not be covered. Again, it is recommended that you check with you Life insurer before you travel.

Other Exclusions Unique to You

In some cases, a travel exclusion may apply based on your individual circumstances. These exclusions will be advised during the assessment process at the time of your initial application and these terms will be discussed with you at that time.

Remember, Always Check the Current Travel Advice

The Australian Government recommends all travellers check their Smartraveller website for up to date travel advice, which it maintains for more than 170 destinations.

This website also highlights potential threats to security, safety and health that you could face at your destination, and also provides counsel on local laws that may differ from those here in Australia. To ensure you are protected, we recommend that you always check with your Life insurer before travelling overseas, even to low risk destinations, to make sure you are covered.

Make Sure Your Insurance is Up to Date

Travel to even the safest destinations can be risky at times, so it’s always a good idea to have your affairs in order before you go. Life Insurance cover can help to provide financial security for your loved ones in the untimely event of your death.

Life Insurance, TPD Insurance and Trauma Insurance premiums are generally not tax deductible. If you are purchasing Life Cover and TPD Insurance for business purposes or under superannuation, then the tax situation may differ. In these cases, and for all queries about taxation, we recommend you seek advice from your accountant or financial adviser.

NobleOak currently doesn’t allow Life Insurance products on a ‘Joint Life’ basis, i.e.where a husband and wife or partner can obtain cover under the one policy. However, you and your partner / spouse can apply for cover individually and you can nominate each other as beneficiaries under each cover.

Our application rules require that the individual named on the cover completes the application questionnaire in all instances.

In these situations you might want to book a double application over the phone with us – this means that you spend 20 minutes on the phone with one of our representatives, answering questions about yourself; and then your partner can do the same. At the end of the phone call, based on your responses both applications can then be completed and assessed. If you can’t find a time to do it together, then we can schedule a call with your spouse / partner at a convenient time. Our aim is to make the process of getting cover for both of you as quick and easy as possible.

Don’t Forget the Spouse Benefit

To help provide you and your partner with greater peace of mind, NobleOak Income Protection Insurance includes a Spousal Benefit. If in the event you have to stop working because you are Permanently Disabled this benefit entitles your spouse to be paid either the lesser of the amount they would have earned per month had they kept working or, a monthly benefit of $2,000 if they stop working to care for you.

NobleOak pays this benefit in arrears, for up to six months, and this is in addition to the regular monthly benefits paid to you under your Income Protection Insurance.This allows your spouse or partner to take time off work to look after you, and reduce the worry of their pay ceasing.

Further details and conditions of eligibility for the Spouse Benefit are available in our PDS.