Term life insurance is the only type of Life Insurance offered in Australia. Term life insurance is also known as life insurance or death cover. The policy pays a lump sum in the event of your death or on diagnosis of a terminal illness where the insured person is likely to die within 12 months.

The maximum payout changes with the age the insured is when they take out the policy; younger people qualify for the maximum payment. Life cover is not as one dimensional as it sounds. Depending on the insurer there are a range of inclusions to consider including: advancement of funeral expenses, guaranteed renewable policy, individual or joint cover, cooling off rights and 24 hour global cover.

Most standard term policies expire at age 99; however each insurer may have slightly different definitions. When in doubt, make sure you consult the products disclosure statement. In exchange for the term life insurance policy, the insured pays either a monthly or yearly premium to the insurer.