Medibank Life Cover

Get tailored life cover with Medibank with up to $1.5 million in cover.

With Medibank Life Insurance you can take out life cover, or add additional options into one total plan. The life cover option will provide up to $1.5 million in cover to assist your loved ones if something were to happen to you. This review will outline the benefits and features of the Life Cover option from Medibank.

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Key features of Medibank Life Cover

It is important to make sure you look at the key features and benefits of any life insurance product before you make any commitment. This will enable you to ensure that the product you choose is the one that is best suited to your needs and those of your loved ones.

Some of the key features and benefits of Medibank Life Cover include:

  • Coverage levels to suit your needs: With Medibank Life Cover you can choose a level of coverage that suits your needs, which means that you can provide the necessary level of protection for your family. Cover is available up to $1.5 million with this insurance plan.
  • Funeral payment: Some families struggle to afford to pay for the funeral of a loved one, often because the life insurance does not pay out until after the funeral. However, with Medibank Life Cover an early payout is made to cover funeral expenses, ensuring that your loved ones have one less thing to worry about.
  • Terminal illness benefit: If you are diagnosed with a terminal illness, you will receive the benefit from your Medibank Life Cover. This means that you will be able to avoid the need to worry about finances at a time when you need to be looking after yourself, and you can use the money for higher quality treatment or even to spend quality time with your family.
  • Accidental injury benefit: Your Medibank Life Cover will also include accidental injury benefit, so you are able to enjoy greater financial security in the event that you are seriously injured. Your benefit will ensure that you have one less thing to worry about, and rather than stressing about finances you can focus on your recovery.
  • Renewal guaranteed: Once you have taken out Medibank Life Cover, you will be able to benefit from guaranteed renewal for life, so you will never have to worry about whether or not you will be accepted for cover based on changes to your health or other circumstances.
  • No medical required: In order to get Medibank Life Cover, you will not have to worry about going through a medical or having blood tests. The application process is fast and simple, so you can get your cover sorted with speed and ease.

What does the Medibank Life Cover policy cover?

  • Life Benefit. If you die while the policy is in force, Medibank Life Cover provides a lump sum payment of up to $1.5 million to your beneficiaries. This benefit is designed to reduce the financial impact of your death and can be used to replace lost income, pay off outstanding debts and maintain your family’s lifestyle.
  • Terminal Illness Benefit. The Life Cover sum insured will also be paid if you are diagnosed terminally ill while the policy is in force.
  • Advance payment. Medibank Life Cover offers an advance payment of $15,000 of the Life Benefit amount to help your loved ones cover funeral costs and other immediate expenses.
  • Accidental Injury Benefit. The Life Cover lump sum benefit will be paid if, as the result of an accident, you suffer loss of limbs, paralysis or loss of sight. A lump sum benefit equal to 25 per cent of the Life Cover amount is also payable if, as the direct result of an accident, you suffer the total and permanent loss of use of one limb or partially loss of sight.
  • Complimentary interim Accidental Death Cover. If you apply for a policy over the phone and further information is required to assess your application, Medibank provides complimentary Accidental Death Cover for up to 30 days while your application is being assessed.
  • Automatic benefit increases. To make sure your policy stays in line with the rising cost of living, the Life Cover benefit amount automatically increases by 5 per cent each policy anniversary. However, you have the option to decline this automatic increase.
  • Guaranteed benefit increases. You can increase your Life Cover benefit amount by $100,000 or more, without providing any further health information, within 90 days of one of the following events occurring:
  • Marriage or divorce
  • Giving birth to or adopting a child
  • Taking out or increasing a mortgage on your principal place of residence
  • A single increase to your total salary package of 20 per cent or more

Additional options to consider

  • Trauma Cover. This extra-cost option provides a lump sum payment of up to $250,000 if you suffer one of several specified trauma conditions, for example a heart attack or stroke. The benefit can be spent however you wish, for example to cover living expenses or to pay for home modifications.
  • Permanently Unable to Work Cover. If you’ll never be able to work again following an accident or illness, this option provides a lump sum payment of up to $1.25 million. The benefit can be used to replace your lost income and manage ongoing expenses.
  • Children’s Cover. This extra-cost option provides a lump sum benefit of up to $50,000 if your child suffers a covered traumatic illness, such as bacterial meningitis, cancer or major head trauma. The benefit can be used however you like, for example to pay for ongoing care or to allow you to take time off work and care for your child.

Three reasons to consider Medibank Life Cover

There are a number of reasons why you should consider taking out Medibank Life Cover. Three of the main reasons for taking out this cover include:

  • Peace of mind: With Medibank Life Cover, you get to benefit from peace of mind, as does your family. This is because you will know that in the event of your death, you family will still have some level of financial security even though you are no longer around to look after them.
  • Financial security for your loved ones: If the worst was to happen, having Medibank Life Cover means that your loved ones will not be left facing huge financial issues. This means that they will have one less thing to worry about at a time that will already be extremely difficult for them.
  • Financial benefits for you: As a result of the accidental injury/terminal illness benefits of the plan, you can also benefit from personal financial security with the Medibank Life Cover.

It is worth noting that with Medibank Life Cover, you can take out the plan as a standalone one or you can bolt on additional coverage, such as Trauma Cover or Permanently Unable to Work Cover.

Exclusions to be aware of

  • The Medibank Life Cover benefit amount will not be paid if you die or have a terminal illness as a result of any intentional self-inflicted act that occurs within 13 months of:
  • The policy’s commencement date
  • The date of any request for an increase in benefit amount
  • The date on which the insurer has reinstated the policy after it was previously cancelled
  • No Accidental Injury benefit, Permanently Unable to Work benefit or Trauma benefit is payable where the condition is a result of an intentional or deliberate self-inflicted injury.
  • No Trauma benefit is payable for cancer, stroke, coronary artery bypass surgery or heart attack if the condition was diagnosed or became apparent within 90 days of:
  • The policy’s commencement date
  • The date of any request for an increase in benefit amount
  • The date on which the insurer has reinstated the policy after it was previously cancelled
  • No Children’s Insurance benefit is payable if the claim arises from:
  • The intentional or deliberate act of the insured child, the policy owner (or anyone else who will receive a portion of the benefit), the child’s parents, guardian, relative or someone who lives with them
  • A congenital condition
  • A pre-existing medical condition

Conditions for Benefit Payment

  • The Life Benefit amount is payable when you die or are diagnosed with a terminal illness
  • If you (or your legal representative following your death) need to make a Medibank Life Cover claim, you must notify Medibank of this fact by phoning or writing as soon as possible. Failure to notify the insurer of your claim within 120 days could lead to it being refused or reduced
  • Medibank will then send out a claim form, which you will need to complete, sign and return. You may also have to get the treating medical practitioner or specialist to fill out a form at your own expense
  • You will need to provide Medibank with proof that the insured event occurred. This could include medical reports, test results and a death certificate

Who is eligible for Medibank Life Cover?

  • To qualify for Medibank Life Insurance you will need to be an Australian resident aged between 16 and 65 years. Cover is guaranteed renewable for life.
  • To include Permanently Unable to Work Cover as part of your Medibank Life Cover, you need to be aged 16-60 and working in permanent employment for a minimum of 20 hours per week.
  • Optional Trauma Cover is only available to applicants between 18 and 60 years of age.
  • To add Children’s Insurance Cover as an extra-cost option, the child you want to insure must be:
  • An Australian resident;
  • Your (or your partner’s) natural child, stepchild or adopted child; and
  • Aged between 2 and 18

The maximum amount of cover you can take out is based on your age at application:

Age at applicationLife CoverPermanently Unable to Work CoverTrauma Cover
16-45$1.5 million$1.25 million$250,000 (from age 18)
46-55$1 million$750,000$100,000
56-60$500,000$200,000$50,000
61-65$500,000N/AN/A

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Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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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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