Life Insurance

Considerations when you’re looking to purchase life insurance cover:

• Think about how much cover you need by considering your family situation; your personal debts (mortgage, personal loans, etc.), and any other important factors such as being the owner of a business and what cover is needed to protect it.
• Know what the policy covers and what it does not cover. 
• An insurance adviser can help guide you through any questions you have, help you decide what level and type of cover you need, and how your cover can be adapted to suit your needs.

It protects your loved ones future by providing them with a lump sum payment if you pass away, or are diagnosed with a terminal illness.

If you are a business owner, it can protect your business if you or a key person passes away or is diagnosed with a terminal illness.

The payment can be used for anything. For example: Paying a mortgage, taking time off work if you are terminally ill or funeral costs.

There is no specific age at which you should get life insurance; rather it would depend on your personal and family circumstances, and your financial responsibilities.

If you have a mortgage, a spouse and children, or others that depend on you financially, or if you own a business - you may want to consider having life insurance.

Note: There are minimum and maximum eligible ages for insurance products.

The amount of life insurance you need would depend on individual circumstances, including things like:

• Paying off debts such as your mortgage or personal loans
• Covering everyday living costs for your family
• Future expenses such as education costs
• Final expenses including funeral costs 

If you would like advice on the amount of life insurance you need, we recommend you discuss with an insurance adviser. They will be able to help you work out what amount you should be covered for.

Cover for Life is not designed to be a replacement for standard Life Cover, rather it’s an additional way to strengthen your financial plan.   

Traditional Life Cover is designed to protect you and your loved ones. If you were to pass away unexpectedly in your peak financial years when you’re paying a mortgage, raising children, or supporting people who rely on your income; life insurance can help ease the financial stress for those you leave behind. With traditional life cover, you pay premiums for the life of the policy in order for it to remain active. Premiums generally start lower and increase the older you get. 

Cover for Life is different because it’s designed to last your entire lifetime, offering level premiums for a fixed premium payment term after which your premiums stop but your cover continues. Cover for Life helps you to leave a legacy or support end of life costs.

AIA Life insurance products provide worldwide cover. Whether you’re at home, travelling or living overseas for any period, you remain insured. 

Whether you are single or not, it remains important to consider your financial and other responsibilities and what may happen in the event of your death. Consider these:

• Funeral expenses
• Mortgage and other repayments such as credit cards and personal loans

You may be a business owner or part-owner with financial responsibilities that will remain even if you are diagnosed as terminally ill or pass away.

It would depend on your personal and family circumstances and your financial responsibilities. If you have a mortgage, a spouse and children or others that depend on you financially, or if you own a business, you may want to consider having life insurance. 

The Policy Owner owns and controls the policy and is responsible for payment of premiums. The Life Assured is the person who has been insured under the policy. If you need to make any changes to a policy, we require written authority from the Policy Owner. 

A Will is your chance to say what you want to happen to your estate after you have died. You can choose an executor and beneficiaries and decide how your assets are to be distributed.

Whole-of-life insurance (such as Cover for Life) and term life insurance are designed to meet different needs. Whole-of-life insurance  is designed to last for your lifetime, it doesn’t expire and is designed to provide a guaranteed lump sum on death. 

While Term life insurance covers don’t expire, most people purchase them for you for a set period (for example, 10, 20 or 30 years), it is often used for temporary needs, like paying off a mortgage or supporting children but only pays out if death occurs during the term. 

The key difference is duration – term life insurance is designed to be temporary vs. Whole of life is designed as a permanent option that lasts your entire life.    

Choosing the right type of life cover for you.  

Some people choose just one type of insurance, while others may want to use a combination of both. The right approach depends on individual circumstances, priorities and financial goals. It’s always best to speak to an expert Adviser who can help you to find the right insurance for your situation.