Nothing represents forward-thinking and planning better than taking out life insurance in Australia when all is well, and there is no reason to think you will need it. Disaster can strike anytime and the last thing anybody wants is to leave their loved ones in the lurch. This article will examine the finer details of life insurance in Australia, who is eligible to purchase it and why.
Is it worth having life insurance in Australia?
Life insurance in Australia is one of the most essential elements of any responsible adult’s responsibilities, especially if they have dependents to think about. Each individual’s circumstances are unique, of course; however, it is safe to say that the peace of mind that knowing your loved ones will be taken care of financially after your death is virtually priceless in itself.
Eligibility for life insurance in Australia
Life insurance in Australia is only available to some who wish to avail themselves of the ultimate protection. Some factors that often lead to refusal or exclusion include:
- Age — Most life insurance in Australia is available to people between 18 and 73. Beyond that, no coverage will be provided.
- Occupation – High-risk occupations* make insurers very nervous, and they may be inclined to refuse life insurance in Australia on the grounds of significant risk in the workplace.
- Citizenship status — life insurance in Australia is only available for citizens or those with permanent residency status.
- Pre-existing medical conditions – A medical check may be required before purchasing life insurance in Australia if pre-existing severe medical conditions are prevalent.
*Some typical occupations that may cause refusal include but are not limited to roofers, aircraft pilots/flight engineers, structural iron/steel workers, underground mining machine operators, construction trade workers, and electrical power-line installers/repairers. Not all of these might be excluded by your chosen insurer, so do your homework and find out if you are unsure about your occupation and its status.
Reasons why a claim against life insurance in Australia may be refused
It is no secret that insurance companies will dispute and even refuse claims that do not adhere to the strict articles of the policy, and life insurance in Australia is no different. A policy may be denied for several reasons, including:
- Self-inflicted fatalities — Any policyholder who chooses to end their own life will automatically cause the nullification of any life insurance in Australia.
- Misrepresented details– Whether deliberate or accidental, any misleading information associated with any life insurance in Australia will be considered grounds for immediate cancellation and denial of any claims. Failure to update the insurer and disclose relevant information in the case of altered circumstances mid-policy will also be considered grounds for voiding the policy.
Life insurance in Australia is highly recommended and can often be more affordable than expected. Many people find themselves reluctant to investigate their options as they feel uncomfortable dwelling on the subject of their premature death. While understandable, this is naïve and leaves their loved ones high and dry if the worst happens. Choosing quality life insurance in Australia is the sensible, forward-thinking thing to do and is well worth the discomfort and expense.