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Medibank Life Insurance Review
A high maximum cover limit and policy add-ons make Medibank Life Insurance a strong choice if you’re looking for that bit extra from your insurer.
Our Verdict:
- You can be covered for up to $2,500,000 – the second highest sum from 19 insurers compared on Finder.
- Looking for a little flexibility with your policy? Total and permanent disability (TPD) and trauma insurance are optional add-ons.
- Your policy isn’t fully underwritten, which could be a sticking point for some.
Review by our life insurance senior writer James Martin
$2,500,000
Maximum Cover
70
Maximum Entry Age
$2,500,000
Terminal Illness Benefit
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Details
| Product Name | Medibank Life Insurance |
|---|---|
| Maximum Cover | $2,500,000 |
| Funeral Benefit | $15,000 |
| Guaranteed Renewability | |
| Online application | |
| Cooling-off (days) | 30 |
Medibank boasts a number of impressive features in its life insurance plans, one of which being a comparatively high maximum cover level of $2,500,000 for terminal illness. Many will appreciate the flexibility that's offered Medibank Life Insurance - you build a policy that's matched your needs and its maximum entry age of 70 is one of the highest around. Just keep in mind that Medibank's policies aren't fully underwritten.
Get the latest deal from Medibank Life Insurance
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Want to win a $2.5K EFTPOS gift card? Get a Life Insurance quote by 27 April, 2021 to enter the draw. There are 3 prizes of $2.5K to be won. Plus, Medibank health members save 10% every year. T&Cs apply.
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Compare life insurance options from Medibank
| Maximum sum insured | Up to $2.5 million, depending on your age and income |
|---|---|
| Age of entry | 16 - 70 |
| How do I apply? | Over the phone with Medibank at 1300 722 568 |
Information based on the Life Insurance policy and last checked on March 2021. Always consult the Product Disclosure Statement (PDS).
| Pros | Cons |
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*Only for specific events e.g. marriage or having children. Information based on the Life Insurance policy and last checked on March 2021. Always consult the Product Disclosure Statement (PDS).
This cover might be suitable if:
- You want the flexibility to increase your cover in the future if you need to (e.g. after having kids) - without another health / lifestyle questionnaire.
- You are after additional cover (not just death cover).
- You'd like to apply quickly for life insurance online.
Apply carefully if:
- You have pre-existing conditions - make sure you can declare your condition during the application for assessment. Otherwise, they could be excluded at claim time.
Don't get this cover if:
- You want 'level premiums' that don't increase with age.
- You are over 70 years of age.
Information based on the Life Insurance policy and was last checked on March 2021. Always consult the Product Disclosure Statement (PDS).
Medibank as a company
Medibank Australia sets itself apart from other insurers by offering leading value in:
- Sustainability program and corporate responsibility: Allows Medibank to focus on the environment, and the social and economic issues which are impacting Australians the most. Medibank also uses its community fund to spread preventative health messages and enact long term changes in the positive health of all Australians, which is a 1% donation of the company's pre tax profits.
- Strong and relatable company values: It is always easier to work with someone who understands you, and thinks in the same way you do, which is why Medibank has a strong values system, which sees them: treat their customers as they would like to be treated, commit to services and deliver what is promised, provide open, honest and transparent services, and celebrate each others differences and engage as equals.
- Large company, small prices: Some businesses will inflate their prices as they grow in order to maintain a certain price point image. However, while Medibank has customers and offers services in health and insurance around Australia and New Zealand, it uses this reach and strength to maintain affordability and relevance for every customer.
Cover options available from Medibank
There are three main cover types: Life Insurance, 'Starter Life Insurance', Income Protection Insurance and Funeral Insurance. Note - all cover types offer:
- 10% discount for Medibank health members.
- Worldwide cover applies 24 hours a day, seven days a week.
Life Insurance
- Get covered for up to $2.5 million (depending on your age and income at time of application) when you die or are diagnosed with a terminal illness (with diagnosis of less than 12 months to live).
- Tailor your policy with options like trauma cover.
- You can be approved over the phone (subject to approval).
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Starter Life Insurance
This is Medibank's basic cover. One thing to understand is that it's an 'automatic acceptance' policy which means it may not be suitable if you have a pre-existing medical condition.
- Provides a lump sum payment of $50,000 up to $250,000 (depending on your age and income at time of application) when you die or are diagnosed with a terminal illness (with diagnosis of less than 12 months to live).
- $15,000 advance benefit payment to cover funeral cost or similar expenses.
- Easy application - no medical or blood tests required.
- Continuous cover for life provided premiums are paid when due (some optional covers may expire).
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Income Protection Insurance
- Provides a replacement income when you are unable to work due to illness or injury.
- Maximum monthly benefit of $7,500 (on Standard Cover) and replace up to 75% of your pre-tax earnings.
- Choice of benefit periods: one, two or five years (on Standard Cover).
- Choice of waiting periods: 30 or 90 days.
- Lump sum Death Benefit of three times the monthly insured amount.
- Easy application - no medical or blood tests.
- Premiums are usually tax-deductible.
- Cover renewable until 65 years of age.
- Additional benefits if you take out Standard Cover
- Rehabilitation benefit of up to 50 per cent of the monthly sum insured for up to six months (on Standard Cover), is available to help you return to work.
- Depending on the level of cover, receive a Lump sum benefit if you suffer total and permanent disability (on Standard Cover).
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Funeral Insurance
- If you are an Australian resident and aged 18 to 79 years inclusive at time of application you are guaranteed acceptance.
- Lump sum payment from $3,000 up to $15,000 to help your loved ones pay for funeral expenses when you die, or cover other immediate expenses and debts.
- Terminal illness benefit equal to benefit amount chosen if you are diagnosed.
- Accidental death benefit triples the benefit amount chosen if payable (if death occurs within 90 days of accident).
- Accidental serious injury benefit triples the benefit amount chosen if payable (if injury is diagnosed within 12 months of accident).
- Premiums will never increase unless you change your cover.
- Premiums decrease by 3% every continuous five years you hold your policy.
- Benefit amount will never be less than the total premiums paid - your family receive either the chosen benefit amount or the total premiums paid, whichever is greater.
- Cover guaranteed renewable for life provided premiums are always paid.
Who is eligible for Medibank life insurance products?
Medibank Life Insurance
- Medibank Life Insurance is available to Australian residents between 16 and 70 years of age and is continuous cover for life provided premiums are paid when due (some optional covers may expire).
- If you want to add Permanently Unable to Work Cover to your policy, you must be aged between 16 and 60 and working on a permanent basis for at least 20 hours per week.
- Optional Trauma Cover is available to applicants aged between 18 and 60.
The amount of cover you can apply for varies depending on your age and income, as shown in the table below:
| Age at application | Life Cover | Permanently Unable to Work Cover | Trauma Cover |
|---|---|---|---|
| 16-45 | $2.5 million | $1.25 million | $500,000 (from age 18) |
| 46-55 | $1.5 million | $750,000 | $250,000 |
| 56-60 | $500,000 | $200,000 | $100,000 |
| 61-70 | $500,000 | N/A | N/A |
Medibank Income Protection Insurance
- Medibank Income Protection Insurance offers a benefit of 75% of your monthly Pre-Tax Income up to a maximum of $7,500 and is available to Australian residents aged from 18 to 59 years inclusive
- Standard Cover is available to people who work more than 20 hours per week in permanent paid employment or self-employment
- Cover expires on the policy anniversary following your 65th birthday
Medibank Funeral Insurance
- Medibank Funeral Insurance is available to any Australian resident aged from 18 to 79 years inclusive.
- It offers a benefit from $3,000 up to $15,000 and cover continues for life
How do I make a claim for Medibank life insurance products?
- If you (or your legal representative) wish to make a claim under a Medibank life insurance policy, you must phone or write to the insurer to provide notification of your intent to claim.
- You will be sent a claim form that you must complete, sign and return, while the treating doctor or specialist may also have to complete a form.
- It's important that you lodge your claim as soon as possible after the claimable event.
- You will also need to provide proof that the insured event occurred. The proof required varies depending on the nature of your claim, but includes all relevant test, examination and laboratory results.
Questions you might have about Medibank life insurance products
What is the Death Benefit amount under a Medibank Income Protection policy?
If you die while the Income Benefit is payable, your policy will offer a lump sum Death Benefit equal to three times your insured monthly benefit amount.
Does Medibank Income Protection Insurance pay a benefit if I am unable to work due to mental illness?
No. Claims arising due to mental disorders or mental illness are excluded from cover.
Will my Medibank Funeral Insurance premium payments ever exceed the benefit amount I receive?
No. Your loved ones will receive a lump sum benefit which is the greater of the insured amount or the total premiums paid over the life of the policy.
What causes of death are covered in the first 12 months of a Medibank Funeral Insurance policy?
During the first 12 months of cover, a benefit will only be paid for Accidental Death or Accidental Serious Injury. No benefit will be paid if you die as a result of any other cause during this period.
How many beneficiaries can I nominate under my Medibank Life Insurance policy?
You can nominate up to five beneficiaries.
Is my Medibank Life Insurance sum insured protected against inflation?
Yes. Benefit amounts automatically increase by 5 per cent on each policy anniversary.
What factors affect the cost of Medibank Life Insurance premiums?
Your premium amount is determined based on your age, sum insured, any additional options you add to your policy, your gender, your smoking status, your health, family history, occupation and any hazardous activities you participate in.
