Life Insurance
  • How does Life Insurance work?

How Does Life Insurance Work?

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Your golden years are golden for a reason. After all your hard work, this can be your time to finally take a step back and enjoy the life you’ve built for yourself.

But while retirement allows you to live in the here and now, that doesn’t mean it's time to stop planning for the future. You may still find yourself making plans for how you’d like to spend your retirement, whether that’s exploring hobbies, chasing a passion, or simply spending time with loved ones. You might also find it’s the right time to start planning for your family’s future in case you’re no longer around, and that’s where Life Insurance can come into play.

How does Life Insurance work? 

Golden Life Insurance is a type of policy specifically designed for the over 40’s that provides a lump sum payout either to your nominated beneficiaries or your estate after you pass away. With a Golden Life Insurance policy, you’ll pay regular premiums either fortnightly or monthly. If a valid claim is made on your policy, your beneficiaries or estate will receive your chosen benefit amount. Your loved ones could then use this to cover end-of-life expenses, outstanding debts or even just for day-to-day costs, easing their financial burden during a difficult time.

Do I need Life Insurance? 

As we get older, it’s natural to worry about the future, and the future of our loved ones in particular. While it’s difficult to imagine a time when we can’t be there for the people we love, planning for that future could make all the difference when the time comes. If you’d like some peace of mind that your loved ones will have some financial support when you’re gone, Life Insurance could be right for you.

However, we all have different needs, and as with any financial decision, it's important to consider your unique situation before you take out a policy. You might ask yourself:

  • Will your future estate include any outstanding bills, or debts such as car repayments?
  • Will your loved ones be financially stable without you?
  • Can your loved ones afford your end-of-life expenses, like the cost of a funeral?

It is important that you consider your circumstances and make your own decision on whether Life Insurance is suitable for you and if you are unsure, consider seeking professional financial advice.

How much cover do I need? 

Depending on your age, you could secure a benefit amount of between $10,000 to $250,000.1 However, the benefit amount that’s right for you will also depend on your own unique circumstances. Before taking out Life Insurance, you should consider:

  • Your needs: For example, what type of living standards will your family need to maintain? How much do your bills cost every month? Do you still have a mortgage? Will you be paying for your children’s or grandchildren’s education?
  • Your budget: It’s important to land on a premium you can afford, as you’ll need to keep up with payments to ensure your cover stays in place. There are a few different factors that decide your premium, but generally the higher your benefit amount, the more you’ll need to pay per fortnight or month.
  • Policy terms: Before signing up to a new policy, you should read the Product Disclosure Statement to ensure that you fully understand the policy terms and conditions. Consider the sum insured, premiums and any waiting periods or exclusions.  Our friendly, Australian-based team can help with any questions you might have on this.
  • Beneficiaries: This means the person or people who will receive your benefit amount when you pass away. If you have someone in mind, it might be a good time to think about how much financial support they will need when the time comes.
  • Inflation: You might want to consider whether the cover amount you take out now will be enough to cover your outstanding financial commitments when the time comes. With Golden Insurance you have the option of a 3% Automatic Benefit Amount Increase feature, which is applied once a year on the policy anniversary to help your policy to keep up with rising living costs. You can opt out of this feature at any time.

How much does it cost? 

The cost of your policy will depend on a variety of different factors. Our team can help you figure out a premium that works for you, but here are a few things that we’ll take into account:

Your age: Generally, the younger you are the lower your payments will be to begin with. However, this is a variable age-stepped premium policy so your premiums will increase as you get older. Your premium will also increase with the Automatic Benefit Amount Increase mentioned above, unless you opt out of this feature. Either way, you’ll receive a notice from us each year before the next increase on your policy anniversary.

Your benefit amount: The higher your benefit amount overall, the higher your premium payments will be.

Your gender: Your gender will impact premiums, with women often paying lower rates due to longer life expectancy.

Smoker status: If you’re a non-smoker, you can look forward to lower premiums with Golden Life Insurance.3

We explain more about how much a Golden Life Insurance policy may cost in our helpful guide here.

When should I take it out? 

It’s never too early to think about Life Insurance – in fact, the earlier you apply, the more likely you are to secure a higher benefit amount. And we never know what is around the corner, so it may pay to think about taking out Life Insurance sooner rather than later. If you’re an Australian resident aged 40-80, you can apply for Golden Life Insurance. You can arrange everything in just a few minutes using only your phone.

How long does the policy last? 

A Golden Life Insurance policy lasts for your lifetime, as long as your premiums are paid up to date. This means that you're covered until you pass away, at which point your loved ones can make a claim to receive the benefit amount you’ve put in place.

What are the benefits of Golden Life Insurance? 

Here are some benefits of choosing a Golden Life Insurance policy:

  • Cash payout up to $250,0001
  • 100% early payout for terminal illness2
  • Straightforward claims
  • Immediate Cover1
  • Easy application
  • Lower premiums for non-smokers3
  • Pay fortnightly or monthly

Get in touch

Our Australian-based team of specialists are on hand to answer any questions you might have and help you get your policy sorted. If you’re ready to find out more, give us a call on , Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.

1

From $10,000 up to $250,000 of cover available (depending on your age when you apply). The benefit amount will not be paid if you die or are diagnosed with a Terminal Illness2 as a result of an intentional self-inflicted injury or attempted suicide that occurred before the policy commencement date or within the first 13 months of the policy commencement date. Refer to the Product Disclosure Statement for full details.

2

Terminal Illness is as defined in the Product Disclosure Statement. Upon payment of a Terminal Illness claim, the policy and cover will end.

3

Premiums for a non-smoker are lower than for a smoker of the same age and gender, with the same benefit amount. Golden Life Insurance is an insurance policy and not a savings plan which means if your policy is cancelled, you will not get anything back (unless it is cancelled within the cooling off period). The total premiums you pay over the life of the policy could also be more than the benefits we pay out.

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