Many people have realized that life insurance in Australia is a superb way to protect and provide for their loved ones in the unfortunate event of their demise. However, many are still yet to reach the same conclusion.
The obvious unpleasant nature of contemplating one’s untimely death makes this understandable, but it can be a costly mistake. In this article, we will explore why life insurance in Australia is worthy of consideration and some factors that affect eligibility and exclusion.
Factors affecting eligibility for life insurance in Australia
Although almost always a desirable addition to any individual’s range of insurance policies, life insurance in Australia is not automatically available to everybody who wants it. The most significant eligibility criteria to be aware of include:
Age restrictions — If the applicant falls outside the age range of 18-73, they are unlikely to be eligible for life insurance in Australia.
Citizenship or permanent residency — Only official residents and legal citizens may purchase life insurance in Australia.
Dangerous occupations – For those people working in ‘high-risk’ occupations (many forms of construction, mining, electrical engineering, and more), life insurance in Australia may be more complicated to purchase and require additional caveats and restrictions, if permitted.
Check with your chosen insurance provider, and they can give you a better understanding of the situation, but you should be prepared to face higher premiums as a bare minimum.
Health — Any applicant’s general health is considered, although a health check is not usually required. Any pre-existing conditions or hereditary ailments must be declared, and any failure to do so will almost certainly result in the nullification of a claim against life insurance in Australia.
Common reasons why claims against life insurance in Australia are denied
It would be naïve to think that insurance companies will pay out on any life insurance without first scrutinizing the policy and seeking reasons not to do so. It is not in their best interest to pay vast sums of money without proper checks and balances.
Some reasons why a claim might be denied include:
Self-harm and self-inflicted fatalities – If a policyholder causes their death deliberately, or it comes as a result of self-harm, this will likely mean the refusal of payment on any life insurance policy.
Misrepresentation – Inaccuracies and deliberate falsehoods attached to any life insurance in Australia will almost certainly result in denial of payment. This attitude applies to any change in the policyholder’s circumstances that is relevant to the policy and not declared.
Updates are crucial to remain within the strict conditions of any life insurance in Australia. It is always better to be safe than sorry; updating your insurance providers on any changes in your lifestyle or circumstances is highly recommended.
Conclusion
Life insurance in Australia is certainly becoming more prevalent, yet it remains a subject some people prefer not to think about.
None of us wants to spend too much time contemplating our mortality, but if we put it in the context of those we leave behind and how they will fare after we are gone, it may be easier to swallow.
Any responsible adult with dependants and people relying on them should seriously consider life insurance in Australia and the peace of mind it brings, along with unmatched protection.