FAQs

How does life insurance work?

Life insurance provides your chosen beneficiary with a one off financial payment should something happen to you. When applying for life insurance you will need to nominate an amount that you wish to be covered for. Joint policies are available to insure your partner as well.

What are the benefits of life insurance?

The main benefit to having life insurance is that should the worst happen, and you were no longer around to provide for your family, it can help provide them with a measure of financial security. The lump sum payment can be used to help them meet their financial commitments, like the mortgage or rent, education costs for your children and everyday living expenses.

Who can apply for life insurance?

For the policies that can be arranged directly through Choosi you will be able to apply for a policy, as long as you are aged between 18 and 64 and are an Australian Citizen or permanent resident living in Australia. You will usually need to answer a few health and lifestyle questions and your eligibility to take out insurance will be determined by these answers. If you are adding your partner to your policy they will also need to meet these criteria. Some insurers may require more information before making a decision on whether you will be eligible to take out life insurance.

Can I take out cover on behalf of my partner?

No. You can include your partner on your policy if joint cover is available as an option, however they will need to verify their details in order for the application to be processed.

Can my partner take out cover for me?

No. Your partner may apply for cover and include you if a joint cover option is available. However you will need to also verify your details in order for the application to be processed.

How long can I get life insurance cover for?

You will need to check the policy details of the cover you are interested in purchasing, but as a guide, most policies available direct through Choosi will give you cover that will be maintained for you for life, as long as you ensure all of your premiums are paid.

Can my loved ones receive money straight away to help pay for funeral expenses and other debts?

In some cases, yes. Some life insurance policies have what they call a 'funeral expense' benefit.  This benefit entitles your nominated beneficiary to be paid a certain amount from your life insurance benefit to help cover funeral costs whilst the claim is being processed. Funeral expense benefits vary in amount between life insurance policies.

How much life cover can I get?

The level of cover you can get will depend on your age and also the insurer that you select to purchase your policy from.    As a guide, the minimum cover that you can apply for through our direct insurers is generally $100,000.

Can I get joint life insurance cover?

Joint life cover is available through most of the policies available through this site, such as the Joint Plan from either Guardian or Real Insurance - these plans allow for both you and your partner to apply to be insured under the one policy.

Can I cover my children under my life insurance?

Most life insurance policies have an option to add children's insurance (until your child reaches a certain age) in case your child was to suffer from an accidental death, or serious illness. You should check the insurers' PDS to see exactly what your child is covered for.

What factors affect my life insurance premium?

Your premium is determined by a number of factors, including your health, age, smoking status, gender and also the level of cover you select.

Do my life insurance premiums increase?

Premiums are recalculated annually on the anniversary date of the policy, and this calculation is based on your age at that time. Premium rates cannot be guaranteed, however you will never be individually singled out for an increase.

When can I cancel my life plan and will I get any money back?

When you purchase your policy you have a cooling off period, and so long as you cancel within this time, and a claim hasn’t been made, you will get a full refund of the premium that you paid. You may also cancel after the cooling off period, however you will generally not be eligible for a refund. The only exception is if you have chosen the annual payment option, and you have cancelled part way through the year, in which case you will receive a refund equivalent to the unused portion of your payment.

Are there any tax benefits for Life Cover?

Generally there are no tax benefits for making payments on life cover, however in most cases you should not need to pay any tax on the benefit that you receive. You do however need to consult your tax advisor.

Can I change my level of life cover?

You can apply to increase or decrease your level of cover at any stage.  This will be reflected in your premium payments.

Can I choose who the life insurance benefit gets paid out to?

Yes, most life insurance policies have a nominated beneficiary form that you can fill out, so you can tell the insurer who the money goes to when you die.

Can I take out life insurance if I have a pre-existing condition?

You will need to declare this and all policies will require for you to undergo the underwriting process which will assess whether or not you can be insured.

Do I need a medical check-up or blood test to take out life insurance?

Some insurance policies do require a medical and blood tests, however some of the policies that are available through Choosi do not require for you to have either.  You will need to check the product details for each policy to find out which policies do not require medicals and blood tests.

Am I eligible to take out life insurance?

Generally, as long as you are aged between 18 and 64 and you are an Australian Citizen or permanent resident living in Australia you will be eligible to apply for life insurance.  You will usually need to answer a few health and lifestyle questions and your eligibility to take out insurance will be determined by these answers.   If you are adding your partner to your policy they will also need to meet these criteria. Some insurers may require more information before making a decision on whether you will be eligible to take out life insurance.

Why am I unable to get life insurance?

If you have been rejected for life insurance it will usually be because of one of the following: you are not an Australia resident; you do not fall within the age criteria for the insurance product; or you do not meet the other eligibility criteria for the insurers that we deal with that may involve health and lifestyle questions.

Do I need life insurance?

This will be dependent on you and your personal circumstances. For people with dependents and financial commitments such as a mortgage, life insurance may be a solution to provide a measure of financial security, should the unexpected happen and you were no longer able to provide for their family.

Can I take out more than one life insurance policy?

Yes you can take out more than one life insurance policy. While most insurers impose limits on the amount of cover you can have in total, this limit is usually several million dollars and so for most people this will not pose any real restriction.

Can my partner and I get life insurance as a couple?

Yes, most Life Insurance policies available through this site offer a joint plan, which allows for both you and your partner to be insured under the one policy.

How do you calculate life insurance premiums?

Insurance premiums are calculated based on the type and level of cover that you are applying for as well as your risk. Insurers determine your risk based on the likelihood of you passing away or getting seriously ill, and the higher your risk the higher your insurance premium is likely to be. The main factors taken into account when assessing risk for life insurance include age, health and smoking status.

How much life insurance cover is enough?

The amount of cover you need and apply for will be dependent on your needs and your personal circumstances. When working out how much cover you need you may want to think about how much money your family would need to get by. How much will they need to cover things like rent or mortgage, school fees, day to day living expenses and other debts? Also how long they will need the support. It may be advisable to seek professional advice to help you calculate your requirements.

What types of cover are available?

For life insurance, there are different types of cover available based on the type of cover you want. You will need to check the Product Disclosure Statement of the Policy you are interested in to verify specific details of what is covered.
As a general rule, the following types of life insurance are listed below:

  • Life Insurance – will cover for Death or if you’re diagnosed with a Terminal Illness
  • Total and Permanent Disability Insurance – is designed to cover you should you become completely disabled and unable to work or earn an income
  • Accident Insurance – covers you in the event of Accidental Death or Serious Injury (such as quadriplegia, paraplegia or total and permanent loss of use of two or more limbs)
  • Serious Illness Insurance – this is also known as trauma cover. Illnesses covered may vary from company to company, however the most common are malignant cancer, stroke, heart attack and coronary bypass surgery

Who can be covered under the life insurance policy?

This will be dependent on the policy you choose. With most policies available through this website, you’re able to cover not only yourself, but your partner on a joint plan. If children’s cover is available as an optional benefit in the policy, you may also cover your children as well.

What is the expiry date of the life insurance policy?

You will need to check the details of the policy you are interested in purchasing, but as a guide, most policies available directly through Choosi will give you cover that will be maintained for you for life, as long as you ensure all of your premiums are paid.

Why did the premium go up from the initial quote you gave me?

When you request a quote we give you an indicative quote based on the basic details that you provide. Once you are ready to apply for your insurance we will ask some more detailed questions to assess if there are any risk factors. If it is determined that you have an area of risk the insurer may add a loading in order to provide you complete cover.

Why can’t I get a quote online?

As everyone’s situation is different, we need to take you through some health and lifestyle questions in order to provide you with a personalised quote.

Important Note:

The answers above are to be used as a reference guide only and do not substitute or replace your insurance contract, the Product Disclosure Statement (PDS) or Certificate of Insurance.