MONEY Life insurance more than a cash payout

Modern life insurance policies have evolved recently to include interesting benefits, writes

LIFE insurers face a major hurdle in getting Aussies engaged, industry figures say, because people simply don’t want to think about dying.

However, life cover is about much more than the money paid to beneficiaries.

AMP director of claims Jen Mitchell said life insurance should be viewed more as something that helps people live the best life they can.

“People know more about what their car insurance covers than their life insurance,” Ms Mitchell said.

“Your body and life are the greatest assets you have. A lot of people think about death cover only, but there is also income protection when something happens to your body.”

Modern policies have evolved recently to include interesting benefits, such as access to horses, robots and

Tim McIntyre

personal cleaners. Equine therapy uses horses in building trust for claimants – mostly when psychological needs are involved.

“Horses are about stretching your borders and also about touch and trust,” Ms Mitchell said.

Robot helpers come in the form of iPad robots, which Ms Mitchell describes as “a mix between a GoPro and an adjustable desk”.

Meanwhile, cleaners are available to claimants unable to perform domestic duties.

She said people don’t always understand that claiming on life insurance won’t mean an increase in future premiums; additional benefits like funeral costs and accommodation for family members are included in some policies. And that despite the hype, genetic test results rarely affect whether someone is offered life insurance. “It’s important people understand life insurance is valuable and every policy differs,” she said. Comparethemark et. com. au spokeswoman Abigail Koch said those considering life insurance should ensure they avoid costly mistakes. “Your age, your job, preexisting health conditions and lifestyle factors such as a smoking habit can all push up the price of life insurance,” she said. “Don’t try and miss out key bits of information about yourself in order to try and save because insurance claims can be rejected.”

Ms Koch said the difference between stepped and level premiums was important.

“Even though stepped premiums start out cheaper than level premiums, they go up every year,” she said.

“Level premiums, on the other hand, don’t go up with age but rather with inflation so can work out to be cheaper in the long run.

“Every life insurance policy has its own exclusions so make sure you read through your Product Disclosure Statement ( PDS) carefully to know what you’re covered for.”