Packaged Life Insurance

Compare Packaged Life Insurance Options from Australian Insurance Providers

People who would not think twice of having insurance for their home, car, and health often neglect insurance for the people closest to them. The premise of life insurance is rather simple. In the event that someone passes away or is diagnosed with a terminal illness, a lump sum benefit is paid to their nominated beneficiary. People gamble that nothing will happen to them. In most cases, that is true. What if something does happen? Would your family be forced to endure financial hardship if you were to suddenly pass away or become disabled and forced to retire? It is time to consider purchasing life insurance if leaving the family in a position of stability is desired. All things considered the price of protecting loves ones cost very little.

Trauma insurance is another form of insurance that is worth considering. This type of insurance pays a lump sum benefit when a person receives a diagnosis for a traumatic health condition such as stroke, open-heart surgery, heart attack, or cancer. Many insurers will allow applicants to bundle trauma insurance with their life cover policy.

Combining different types of cover is not a new can ensure that adequate cover is received for a number of different losses at an affordable rate. It is also generally more cost-effective than taking out multiple policies.

Compare packaged life insurance policy options

Benefits of a Packaged Life Insurance Plan

There are a number of benefits worth considering when looking at bundling different types of cover;

  • A 10 percent saving on insurance premiums is possible when different products are combined into one bundle.
  • Other benefits include less maintenance, less complication and confusion.

Here are some packing options that are available: Income Protection and Life Insurance; Income Protection, Life, and Permanent and Total Disability Insurance: Income Protection, Life Insurance, and Trauma Insurance; or Income Protection, Life Insurance, TPD, and Trauma Insurance. Income protection pays up to 75 percent of gross monthly income when unable to work because of disability or illness. Total and Permanent Disablement Insurance (TPD) pays a lump sum when work or performance of duty related to education, experience, or training is impossible.

Drawbacks of Packaged Life Insurance

The choice between linked bundling depends upon individual circumstances. Usually, stand-alone policies offer more flexible coverage. That flexibility has a price. One extra cost is the money needed to for duty stamps that are payable on each policy. Ensuring sufficient coverage for a situation is the most important issue. Suppose a serious illness or accident renders one unable to work. In a linked policy that covers $1 million in life insurance, TPD coverage of $700,000 and trauma coverage of $350,000, making a trauma claim may cause the loss of opportunity to claim a full life policy. Making a TPD claim can be even worse. Life insurance can be reduced by the TPD claim amount because the insurance company considers the event as a shared risk. Now, the $1 million life insurance policy is reduced to $300,000. With a stand-alone claim, the $1 million life insurance would be unaffected.

Packaged Life Insurance with Buy-Back Feature

When the scenario explained above that reduces the $1 million life cover policy to #300,000 occurs, an opportunity to later buy back TPD cover may be possible. A reinstatement of the original $1 million cover can be made after one year. A buy back restores the original amount. The buy-back option is standard with some companies. Some companies charge an additional premium. The buy-back option is part of packaged life insurance. An insured person is allowed to reinstate the value of the policy back to the original amount. A one-year time period is standard before reinstatement is made. Thirty days prior to the year anniversary, confirmation from the insurance company that states recognition of the desire to reinstate needs to occur. Medical underwriting is not required to increase coverage. Premiums will not be re-rated because of changing health circumstances. When the life insurance policy is reinstated, there no longer is TPD coverage. Premiums are adjusted for full life insurance coverage. In the event that a claim on life insurance is made in the interim, the beneficiary will receive the reduced coverage amount. Buying back life insurance is not the same as reinstating TPD coverage. TPD cover buy-back allows another unrelated claim by the insured.

Family Packaged Life Insurance

No one knows what the future will bring. Everyone wants to protect those they love. Death can cause loved ones to suffer emotionally and financially. Either partner, or a partner and children could suffer financial consequences caused by the other partner’s death. The one remaining is left coping with the financial responsibilities alone. If an individual who died is the main wage earner or looks after the children, the situation becomes more complex. The surviving partner has to make alternative arrangements.

Joint Life Insurance Arrangement

Having life insurance is one way to ease financial strain. If only one partner has life insurance, the family could still find itself struggling financially. The non-insured partner could pass away first. Some couples opt for individual life insurance coverage. That could be costly. Joint life insurance is available. People who co-habit or are married are the usual candidates for joint life insurance. These couples often have children for whom they want protection. A life insurance purchase on their children is not something many parents consider. For some, the idea is a little repulsive. Here are some things to consider about family packaged insurance. Long standing illness of a child can put emotional and financial stress on a family. Insuring children can reduce the financial burden that can occur because of sickness or a child related accident. Recuperation and rehabilitation can take a long period of time.

Child Cover

Death of a child is another unpleasant thought to ponder. The emotion involved would be difficult. Financial loss does not have to make matters worse. Funeral expenses are on the rise. Being unprepared can increase a family’s debt. Death and illness are not the only situations that are eased by life insurance coverage for children. The policy has cash value. The value can be accessed to help finance a college education. Some policies have cash value that builds interest and is tax-free when accessed.

Compare Life Insurance or Income Protection Quotes

Please enter your full name
Please enter a valid email address
It's important to give us a valid phone number
Gender
Smoker
Date of Birth
Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
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.
By submitting this form, you agree to the finder.com.au privacy policy
Compare Quotes

Compare Life insurance quotes from these direct brands

Rates last updated December 7th, 2016
Product details Maximum cover Maximum Entry Age Cooling-off
(days)
Life Insurance
Life Insurance
Choice of cover options and flexible premiums to suit budget. No lock-in contracts and fast application. $1,500,000 65 30 Get quoteMore info
Term Life Insurance
Term Life Insurance
Receive up to $1,500,000 in life cover with American Express Term Life Insurance issues by Zurich. $1,000,000 69 30 Get quoteMore info
NobleOak Term Life Insurance
NobleOak Term Life Insurance
Save 25% on NobleOak life insurance and pay no premium in the first month. $15,000,000 69 30 Get quoteMore info
Life Insurance
Life Insurance
Get flexible life insurance up to the sum of $2,000,000. $2,000,000 59 21 Get quoteMore info
Ezicover Life Insurance
Ezicover Life Insurance
Get up to $1.5 million in life cover. 10% discount available on a second life insurance policy when two policies are issued at the same time. $1,500,000 69 30 Get quoteMore info

Maurice Thach

Maurice is a publisher for finder.com.au. Daily research of Australia's insurance offerings allows him to breakthrough the noise of the many policies out there to uncover what can (and can't) be covered. Maurice hopes to make finding the right insurance easier for all.

Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback