Term Life Insurance is a basic contract between the Life Insured and the insurance company, it pays an agreed lump sum of money in the event of your death or terminal illness (ie an illness from which you are expected to die within 12 months [according to a medical practitioner], thereby allowing for an advance payment). Most policies can be renewed up to age 99. The only automatic exclusion on the policies is death due to suicide in the first 13 months.

Term Life Insurance will help protect the policy holder's family by providing a lump sum in the event of a death, which could be used to meet the following needs:

• The family's ongoing income needs
• Mortgage and other outstanding loans that you can pay off
• Children's education costs
• Life Insurance is really Income Protection Insurance for the family

Acidential Death Insurance is a very limited and reduced policy cover, it is commonly advertised as a quick and easy solutions to insurance needs, but frequently its cost is not worth what you cover, for example i have seen policies where you effectively need to be hit by a car with a "Q" in the licence plate under the night sky with a blue moon in order to get paid.
Given the limited nature of these policies and the high cost we do not recomend these products.
Group Life Insurance is one commonly found with in superannuation, it is where the insurance policy is over the whole group and not you specifically, this generally results in shorter applications and less complicated policies. It can however be a cash flow effective method of getting life insurance, especially for those people with less then perfect health histories.

Whole of Life policies are often considered the father of life insurance, they where originally established in the 1700's and hold both insurance and investment components.

In the first year the majority of the premium paid goes towards the life insurance while in later years the life insurance becomes almost free and the investment balance starts to grow, there was a number of odd features to these products, for example you could borrow against the value of the policy, it held a similar tax treatment to Insurance Bonds, and premiums were generally fixed amounts.
New Whole of Life products are no longer available in Australia

Income | Life | Trauma | TPD Insurance