There are some common misconceptions that can stop people from getting the cover they need. Here, we expose five of the biggest Life Insurance myths.

Myth 1: Fewer medical questions means quicker and better cover

Some directly available life insurance covers don’t ask many health questions when you apply. Often these have broader pre-existing condition clauses that may result in a greater likelihood of your claim being delayed or even declined. If you already have life insurance or are thinking about taking out cover, do your homework: always read the Product Disclosure Statement (PDS) and other documents from your insurer to make sure you know what you are and are not covered for. It can be easy to buy cover because it’s quick and/or cheap, but this doesn’t mean it’s the best life insurance for your particular circumstances.

Myth 2: I’m single, so I don’t need life insurance

Even if you don’t have any dependants or a partner, there may still be debts to pay and funeral expenses to cover if you were to pass away. For example, the average basic cremation in Australia costs upwards of $4000, with burials costing much more. If you don’t have many debts, nor a partner or children to think about, then your life insurance may cost you less than you think because you may decide you do not need a high level of cover.

Myth 3: My superannuation fund’s life insurance is enough

Consider: The life insurance provided within many superannuation funds may not adequately cover your life insurance needs. Often a default level of cover is provided. If your super fund provides life insurance cover, you should take the time to consider whether the sum insured is adequate, keeping in mind your levels of debt and how much you want to provide for loved ones should you pass away.

Myth 4: Life insurance is expensive

The cost of life insurance might surprise you – it may be less expensive than you think. Policies vary, and premiums will depend on your age, health and lifestyle. A non-smoker in their 30s can expect to pay less than $1 a day, depending on the level of cover they want. It can be money well spent – life insurance could help to safeguard your family if you were to pass away.

Myth 5: Fully underwritten and Partially Underwritten covers are the same

Fully underwritten cover equals greater certainty. One of the key points of confusion can centre on the difference between “underwritten” cover, which is more fully assessed upfront, versus products that are not fully underwritten (“partially underwritten”). This is often where a more detailed assessment is made at the time of claim when your family may be going through a difficult time. With fully underwritten cover, the insurer asks several health, occupation and lifestyle questions upfront and sometimes requires medical tests and details of your medical records. This process does take longer than cover that is not fully underwritten but results in far greater certainty about the risks the insurer is taking to provide cover and, importantly, greater certainty for you at claim time.

How do I start?

To find out more, you may wish to consider NobleOak, an Australian Life Insurer with a 145 year heritage. NobleOak has a rich history built on a desire to help Australians and their families.

Call NobleOak’s friendly representatives on 1300 014 494. Mention ‘Eternity News’ and if you decide to get cover, you will get your first month free (valid until 31st August 2023)*.  You can also click here for an online quote.

Important Information

This article is a sponsored content piece by NobleOak Life Limited. Please note, cover available to Australian residents only. The TMD for NobleOak’s Premium Life Direct insurance is available here.

NobleOak Life Limited issues these products. ABN 85 087 648 708 AFSL No. 247302. This information is of a general nature only and does not take into consideration your objectives, financial situation or needs. Always consider the Product Disclosure Statement (PDS) to [KR1] see if the product is right for you.

*First month free offer – Apply for one or more Life Insurance cover types available under Premium Life Direct and if cover is issued, you’ll not start paying premiums until one month after the commencement date of cover.  This offer is available if you apply for cover before 31/08/2023. This applies to any one or more of these insurance cover types which you take out – Life Insurance, Income Protection Insurance, Total and Permanent Disablement (TPD) Insurance or Trauma Insurance cover. The offer(s) are available for new customers only and can be used only once. Not able to be used in conjunction with another advertised offer.