- Life Insurance Products
- What is Life Insurance?
- Why Do I Need Life Insurance?
- How to Purchase Life Insurance
- Key Person Insurance
- Life Insurance vs Income Protection
- Life Insurance Glossary
- Frequently Asked Questions
- Is Life Insurance Tax Deductible?
- Best Life Insurance
- Income Protection & GST
- Life Insurance And Superannuation
- Life Insurance For Seniors
- When Is Life Insurance Paid Out?
Life Insurance Glossary
Know More About Life Insurance
Please note this glossary is intended for guidance only and you should read your policy wording and definitions or consult your financial adviser for further clarification.
Accidental Death Cover
Is the optional benefit payable on the death of the insured as a result of an accident. The amount of the benefit is that shown in the Policy Schedule together with any increases as a result of automatic indexation of benefits.
This is the annual premium specified in the Policy Schedule and includes the premiums for the benefits attached to the policy and the policy fee.
Automatic indexation of benefits
Unless otherwise specified, on each policy anniversary date benefits are increased in line with the movement in the Consumer Price Index.
The maximum amount of time that benefits will be paid for each claim.
Date insured from
The date as shown on the Policy Schedule, from which the policy becomes effective.
Disability / disabled
This is the term used to describe your inability to work due to sickness or injury. Totally disabled is when you can’t work at all, and partially disabled is when you can only work in a reduced capacity.
Immediate family member
Includes a spouse, de facto spouse, parent, parent-in-law and a child.
Insurance on your income, to ensure you are paid a percentage of your salary if you stop work due to a temporary/permanent disability or illness, for an agreed period of time. Also known as salary continuance insurance.
An accidental injury occurring while the policy is in force.
The person on whose life benefits are payable. The insured’s name appears on the Policy Schedule.
A legally qualified medical practitioner other than the policy owner, the insured or an immediate family member or business partner of the policy owner or the insured.
This is the amount you insure for under an income protection policy. You can insure up to 75% of your income from personal exertion (excluding superannuation contributions and business expenses but before tax).
A person, corporation or trust nominated by you to receive any money payable under term life insurance or accidental death cover option.
The full-time gainful occupation of the insured immediately prior to total and permanent disablement or total disability, or income protection claim.
Policy anniversary date
The date on which the policy’s annual review will take place and from which the premiums are calculated. The policy anniversary date will fall on each anniversary of the date insured from shown in the Policy Schedule.
Policy expiry date
When you take out a policy you choose how long you want your cover in place, for example up to age 65.
Premium due date
Premiums are usually payable monthly in advance and are due on the date insured from and on each policy anniversary date.
An illness or disease that becomes apparent while the policy is in force.
Term or Life insurance
An insurance policy that pays a lump sum to dependants or other beneficiaries on the death of the person covered.
An policy that provides insurance cover if a person suffers from permanent disability.
Trauma insurance (also known as critical illness insurance) provides a cash lump sum in the event of contracting a specified disease or trauma. The number of conditions covered (benefits) varies widely, cheaper policies often offering less benefits.
This is the amount of time you have to be disabled before you can qualify for any disability benefits. You select your waiting period based on how long you can wait until disability benefits would be payable.
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iSelect Life Pty Ltd – ABN 89 124 304 347, AFS Licence Number 331128. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.