Budget Direct Life Cover

Receive up to $1 million in life cover with Budget Direct.

Budget Direct Life Cover will give your loved ones peace of mind and financial security should you pass away.

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A lump sum benefit from Budget Direct Life Cover could help cover the costs of education, mortgages and car payments if something were to happen and you were no longer around to provide for your family. Even if you’re not the breadwinner, a benefit could be put towards the substantial costs of everyday life such as cooking, laundry, cleaning, and childcare, especially if you have a young family.

What does the policy cover?

Life Cover is designed to look after your family when you’re gone, because no matter how careful you are in life, you should always be prepared for the unexpected. That is why Budget Direct offers an affordable and value packed Life Cover policy, which protects you and your family with:

  • Worldwide cover. Your Life Cover from Budget Direct goes wherever you go, so you remain covered 24 hours a day, seven days a week, anywhere in the world.
  • Your choice of benefit amount. You can choose a benefit amount that suits you and your family’s financial needs and plans, from $50,000 up to $1 million (depending on age). Keep in mind that the higher the benefit amount, the higher the premiums, but don’t short change your family’s future either. When you are choosing your policy purchasing life cover some of things people generally take into account are make sure you take into account how much is left on your mortgage debts, your average monthly household bills and your plans for education costs, family holidays or investments.
  • A 10% discount. If you are already a Budget Direct customer, you can be eligible for a 10% discount on new Budget Direct Life Insurance.
  • Benefit paid as a lump sum amount. Budget Direct pays your Life Cover benefit to your nominated beneficiaries as a lump sum, so they can use it as and how they need it most. This could be for final medical bills or funeral costs, ongoing household bills, or to secure the family home by paying off the mortgage.
  • Life Cover for the whole family. Even if you are not the sole income provider in your family, or work within the home and don’t earn an income at all, it can still be important for you to be protected by Life Cover.
  • Advance Funeral Benefit. Budget Direct may also be able to approve an advance of your Life Cover benefit immediately after receiving a claim, up to the value of $10,000. This advance comes out of the final Life Cover benefit amount, but is available straight away, to help pay for funeral costs or other final expenses.
  • Terminal Illness Benefit. You can also claim on your Budget Direct Life Cover if you are diagnosed with a terminal illness with 12 months left to live. This gives your family access to much needed funds if they are unable to work normal hours while caring for you, or to simply cover those extra medical bills and incidental costs which come with a family emergency.
  • Instant Cover on Approval. If you are an Australian resident between 18 and 64 years old (next birthday), you can apply for life insurance with Budget Direct over the phone. You don’t need to take any medical or blood tests, and your cover is instant on approval. You will work with a Budget Direct life insurance specialist to create the policy, inclusions and benefit level to suit your needs. And as long as premiums are paid, you will remain covered until you are 100 years old, with guaranteed renewal.
  • Cooling-off period. Don’t worry about rushing into life insurance with Budget Direct because you have a cooling-off period of 30 days in which to change your mind. If you decide not to go ahead with Life Cover from Budget Direct within the 30-day cooling-off period, as long as you haven’t made a claim, you will be able to cancel your cover and receive a full refund on any premiums paid.

What doesn't Budget Direct Life Insurance cover?

Your Budget Direct Life Cover claim will not be paid if the insured person dies or has a terminal illness directly or indirectly as a result of self-inflicted injury, within 13 months of:

  • The cover commencement date
  • The date of any non-automatic increase in cover
  • The date the policy was reinstated after having previously been cancelled

In addition, at the time you take out cover, you and the insurer may agree to special terms and exclusions for your policy. Your claim will not be paid if it arises due to any special exclusion that applies to your policy.

Who is eligible for Budget Direct Life Cover?

In order to qualify for a Budget Direct Life Cover policy you will need to be aged between 18 and 64 years of age at your next birthday. The policy offers a maximum lump sum benefit of $1 million, but the highest benefit you can apply for depends on your age when you take out cover:

  • Age 18 - 44: up to $1 million cover
  • Age 45 - 54: up to $750,000 cover
  • Age 55 - 59: up to $500,000 cover
  • Age 60 - 64: up to $300,000 cover

Cover expires on the policy anniversary after your 100th birthday.

If you want to add optional TPD Cover to your policy you need to be aged between 18 and 59 years. The maximum level of cover you can apply for once again depends on your age:

  • Age 18 - 44: up to $1 million cover
  • Age 45 - 54: up to $750,000 cover
  • Age 55 - 59: up to $500,000 cover

TPD Cover expires on the policy anniversary after your 65th birthday.

To take out optional Budget Direct Children’s Cover the insured child must be aged between two and 17 years. The maximum benefit amount is $20,000 and cover expires on the policy anniversary after the insured child’s 21st birthday.

If you want to add Trauma Cover or Trauma Plus Cover to your policy you must be between 18 and 59 years of age at the time of application. The maximum level of cover available varies according to your age. Both Trauma Cover and Trauma Plus Cover pay a maximum benefit that is the lower of the Life Cover benefit amount and:

  • Age 18 - 44: up to $500,000 cover
  • Age 45 - 54: up to $375,000 cover
  • Age 55 - 59: up to $250,000 cover

Cover expires on the policy anniversary following your 65th birthday.

To be eligible for Budget Direct Life Cover, you must be between the ages of 18 and 64 (next birthday) and an Australian resident at the time of your application. Budget Direct Life Insurance reserves the right to either except or decline any application at their own discretion.

The Budget Direct $100 VISA Prepaid Card offer commences on September 11, 2014 and can be withdrawn at any time. Policy must be held and all premiums paid for 90 calendar days. Terms and Conditions and eligibility criteria can be found here. This insurance is arranged by Auto & General Services Pty Ltd (ACN 003 617 909, AFS Licence No 241411) of Level 13 Toowong Tower 9 Sherwood Road, Toowong, QLD, 4066, Australia trading as Budget Direct (Budget Direct) on behalf of the issuer, Hannover Life Re of Australasia Ltd (ABN 37 062 395 484). Because we don't know your financial needs, we can't advise if this insurance will suit you. You should consider your needs, and read the PDS and FSG before making a decision to buy insurance. Subject to underwriting and terms and conditions.

William Eve

Will is a personal finance writer for finder.com.au specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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