Life Insurance FAQs
You’ll find many answers to the most common questions about life insurance here. If you can’t find what you’re looking for or have a specific question regarding your own policy, please contact us.
How much Life Insurance do I need?
Working out how much Life Insurance cover you’ll need really varies across each person. One approach is to think about how much you can realistically afford to pay for cover each month, taking into consideration your existing expenses. An alternate approach may be to consider your current debts and future expenses like your mortgage or rent, living expenses, child care costs, schooling fees, etc.
The Life Insurance calculator may help you work out how much cover you and your family may want to consider. You can then use that information to get a more accurate Life Insurance quote.
Do I need Life Insurance on top of my super?
Most super funds offer at least a basic level of life insurance, as well as income protection and Total Permanent Disability (TPD) insurance to protect members and their families from the financial hardship of death or a terminal illness.
The level of cover and types of insurance provided through your super are limited. Payments are also sometimes delayed after you’ve made a claim, and coverage ends after you reach a certain age (usually 65 or 70). Read more about the pros and cons about using the life insurance included with your super fund at Money Smart.
Can I get a discount on AAMI Life Insurance for having more than one policy with AAMI?
Yes, if you hold other AAMI branded Insurance policies such as car insurance, we will apply a 5% discount on your AAMI Life Insurance premium for the life of the policy.
In addition, if you add another adult to your policy, the youngest person will receive a 5% family discount. The family discount doesn’t apply to the Optional Illness Covers.
How much cover do I need?
Working out how much Life Insurance cover you’ll need really varies across each person. One approach is to think about how much you can realistically afford to pay for cover each month, taking into consideration your existing expenses. An alternate approach may be to consider your current debts and future expenses like your mortgage or rent, living expenses, child care costs, schooling fees, etc.
Our life insurance calculator helps you work out how much cover you and your family may need. You can then use that information to get a more accurate Life Insurance quote.
Can I afford life insurance?
The real question is - can you afford not to have life insurance?
If you were to die now, could your family continue to live in the family home, maintain their lifestyle and achieve their financial goals? Ultimately, not having life insurance could cost you and your family more than you think.
Fortunately, most people are surprised to learn that life insurance can be cheaper than they think.
And the benefits of life insurance far outweigh the cost, as you or your family can use the proceeds of an insurance payout to help:
- Pay off the mortgage
- Meet ongoing household expenses
- Fund medical treatment or rehabilitation costs
- Pay for school and university fees
- Pay for extra child care or home services
- Cover the cost of funeral expenses.
If cost is an issue for you, it’s good to know that heightened competition means there is now a range of affordable life insurance options, many of which you can apply for and purchase online.
Get started with an online Life Insurance quote. This is usually a simple process that involves entering a few personal details, such as your age, gender, occupation and smoking status, and then submitting your request to the insurer.
With little fuss, you’ll soon find a level of life insurance that will help meet your needs and protect your family’s future.
Can I reduce the cost of my Life Insurance?
Your premium, i.e. the purchase cost of your Life Insurance, is calculated by a number of factors. These can include:
- Gender
- Age
- Weight
- Smoking status
- Pre-existing health conditions
- Engagement in hazardous sports such as parachuting, mountaineering and motor sports
Certain lifestyle changes, like quitting smoking, changing jobs, or losing weight may mean your premium is lessened, so it’s important to keep us in the loop as often as you can.
Will I need a medical test to get Life Insurance?
Because of the way premiums are calculated, it’s important we understand the health conditions and needs of every Life Insurance applicant. With AAMI Life Insurance, you are not required to go to the doctors or get any medical tests. You will be required to answer a number of Health and Lifestyle questions as part of the application, but this should be a quick and easy process without the need to consult a doctor.
You may be worried about the potential of your Life Insurance application being rejected as a result of the answers you provide, but it’s important you don’t omit or hide information. If you do, you may end up not being able to receive payment for a claim you make down the track, when you might have been fully eligible for cover if you’d been up front in the first place.
How will my health affect my cover?
Each individual can tailor a life insurance policy to suit their needs. For an insurer to accept your application for cover, they must be satisfied that your health and lifestyle fit within acceptable boundaries.
As such, an insurer will generally take into account a range of personal and lifestyle attributes when considering your application, including your age, height, weight, medical history, occupation, family health history and smoking status.
If you have pre-existing health issues when you apply for cover, you may need to pay a higher premium rate than normal (known as a ‘premium loading’). The life insurance company may need to charge this loading in order to cover the additional risk. Alternatively, the life company may apply an exclusion on your policy in relation to that pre-existing health issue.
In addition, some lifestyle choices may affect your life insurance cover, including:
- High risk occupations such as working in the oil or gas, transport or fishing industries.
- Engaging in hazardous sports such as parachuting, mountaineering and motor sports.
For more information, you should review the relevant Product Disclosure Statement (PDS).
However, life insurance is not limited to healthy, risk-averse people. Even those who have survived a serious illness, such as cancer or a heart attack, may still be eligible for life insurance cover.
Before accepting cover, the insurer will usually consider the type of illness or disease and its stage of development. For example, some cancers are considered more aggressive – or more treatable – than others, so an insurer would typically request a full medical report and examination to determine how far the cancer has progressed and whether it’s likely to return.
Often, the insurance company will want to wait at least a couple of years after the applicant has been given the ‘all clear’ before accepting the policy, and it may attract a premium loading due to the higher risk.
Do I need Life Insurance on top of my super?
Most super funds offer at least a basic level of life insurance, as well as income protection and Total Permanent Disability (TPD) insurance to protect members and their families from the financial hardship of death or a terminal illness.
The level of cover and types of insurance provided through your super are limited. Payments are also sometimes delayed after you’ve made a claim, and coverage ends after you reach a certain age (usually 65 or 70). Read more about the pros and cons about using the life insurance included with your super fund at Money Smart.
You can use our life insurance calculator to better understand your personal needs and identify any gaps in what you’re currently covered for through your super.
How do I cancel my policy?
We’re sorry you’re thinking of cancelling. For policy cancellations or to discuss your situation further and to consider your options, please call the AAMI Life Team on 13 22 44.
If you do cancel, you may qualify for a refund for the unexpired portion of the premium less our cancellation fee and any non-refundable government charges (if applicable).
I’m a NZ Citizen, can I apply for this insurance policy?
Yes you can - all Australian Citizens, New Zealand Citizens and permanent residents residing in Australia at the time of application are eligible to apply.
Does the insurer of AAMI Life comply with the Life Insurance Code of Practice?
Definitely! It’s important to us (insurer) that you get the highest standards of service when dealing with us, so we adopt the industry’s Life Insurance Code of Practice.
Will my premiums for my Life Cover increase?
What is the Life Insurance Code of Practice?
The Life Insurance Code of Practice is a series of mandatory customer service standards that all life insurers need to comply with. These standards cover sales and marketing practices, underwriting and claims and are designed to protect you.
AAMI Life Insurance policies are issued by TAL, who played a key role in creating the Life Insurance Code of Practice. AAMI Life is committed to delivering the best possible customer service standards. AAMI Life will continue to look for ways to raise the standards of customer service now and over the years to come. Read more