Life Insurance
Common Life Insurance Terms and Definitions
05 October 2017
Choosing the right life insurance policy for your needs isn't always straightforward, not just because it can be a big decision but because life insurance policies and their various terms can be overwhelming. That's why we've created this simple breakdown of the various terms you're likely to encounter when you start to compare life insurance options.
The A-Z of Life Insurance terms
Accident:an event which solely and directly causes injury as a result of violent, external and visible means.
Automatic Indexation Benefit: helps keep the value of your insurance cover in line with inflation. Most insurers automatically increase the value of your insurance each year on your policy anniversary by either a CPI % increase or by a specified amount.
Cooling off period: most insurers provide you 30 days from the start of your policy (or policy commencement date) to check that the life insurance cover meets your needs. If you wish, you can cancel your life insurance policy during this cooling off period, and receive a full refund of any money you have paid (provided you haven't made a claim).
Disabled: means as a result of sickness or injury, you are unable to perform each and every duty of your occupation that you were engaged in, and receiving an income from immediately prior to your disability.
Death Cover or Term Life Insurance: also known as life insurance. This covers you in the event of death or in the event of terminal illness.
Primary nominated beneficiary: the person you list first on your Nomination of Beneficiaries form, this is the person you would like to benefit from the policy and receive a payment at claim time.
Premium: the amount you pay for the insurance policy.
Sum insured: the amount of cover you have – or what the insurance company will pay to you if your claim is successful.
Terminal illness: a sickness that you have been diagnosed with, and regardless of any available treatment your life expectancy is less than 12 months.
Organising Life Insurance has never been easier – with Suncorp you can get a Life Insurance online quote. If you're unsure how much cover you need, use our Life Insurance Calculator to help calculate how much cover you may need.
If you'd still like more explanation about these or other life insurance terms, you can check the PDS or call us on 13 11 55.
Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, are issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies are not part of the Suncorp Group. TAL Life uses the Suncorp brand under licence from the Suncorp Group. Redundancy Benefit provided on or before 31st March 2020 was issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 are issued by TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.
Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Product you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is also available.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
