Ezicover Life Insurance

Life insurance provides you and your loved ones with a lump sum amount in the event you are diagnosed with a terminal illness or you die. It's also known as term life insurance or death cover. Other types of life insurance – such as income protection, trauma, and total and permanent disability (TPD) – also come under the life insurance cover umbrella but they cover different types of events.

If you have financial dependents, a mortgage to pay off or debts to clear, holding a life insurance policy can be a worthwhile part of your financial protection plans. You may think you're too young for life insurance or that life insurance costs too much, but when you think about the real cost of not having it, you may find it's something you don't want to do without.

Yes, some insurers do allow you to have a joint or 'multi-life' policy. It's usually taken out by spouses or partners, and allows for different amounts of cover for each partner. Generally, insurers will require you to nominate your partner or spouse as the beneficiary. 

This depends on your personal circumstances and what stage of life you're at. A general rule of thumb is to have enough insurance to ensure your loved ones can maintain their same standard of living if you pass away. When calculating the amount, consider what you already have with regard to super, savings, and assets such as shares. Then calculate what your family needs in terms of covering the mortgage or any other loans, school fees and general living expenses.

Unfortunately, research by Rice Warner found there is a severe underinsurance gap where, in many cases, a person's life cover was too low to meet their family's basic needs. There are many online insurance calculators that can help determine how much you need, such as this one on MoneySmart's website.

The cost of life insurance in Australia is determined by your health, whether you're a smoker, age, occupation, and the amount of cover you want. Usually life cover costs more for men. One way you can reduce your premiums is to quit smoking. Also, if you no longer have children as dependants, you may not need the amount of life cover you initially took out. If you feel you are paying too much, you should consider shopping around to see if you can get a better deal.

A rough guide to what's a reasonable amount for life insurance is six to ten times the amount of annual salary. If you multiply by ten, if your salary is $50,000 per year, you could opt for $500,000 in coverage. Commitments like mortgage, school fees and other debts can be covered under this insurance type. Add these up as a starting point for how much cover you may need here.

People who run their own business usually have more financial commitments to consider, which means they have more to protect. As a business owner staff wages and rent would still need to be paid should you become terminally ill or pass away. Or their may be debts on the business loan that need to be covered. Life insurance is a good way to get peace of mind for business owners.

When reviewing life insurance quotes, it's important to check the amount of cover is right for you, if the premiums fit within your budget and ensure you've read the Product Disclosure Statement and understand the terms and conditions within the policy. It's also important to be entirely truthful when getting a quote for cover, as the insurer may knock back a claim if things like pre-existing conditions or smokers' status aren't disclosed.

No – payments for life insurance, critical illness and Total & Permanent Disability insurances aren't tax deductible. However, premiums paid for income protection insurance is usually tax deductible.

When making a life insurance claim, you will need certified copies of the death certificate. Make sure the funeral director has certified the document before beginning to claim to avoid delays.

Then contact the insurance company and they will explain their process for filing a claim.

In most cases, yes! However, most life insurance policies have a qualifying period which means you can't claim immediately.

There are a couple of steps to take to cancel a life insurance policy. Firstly, the person covered by the policy needs to contact their insurer informing them of the decision to cancel. Then the request must be made in writing, some insurers may need a particular form filled out. Submit all the relevant paperwork and the insurer will confirm once the policy is cancelled.