get more with Budget Direct Life Insurance
Easy to apply
We’ll ask you some questions about your health, occupation and lifestyle. No medicals or blood tests.
Your cover will renew annually, regardless of changes in your health, occupation or pastimes.
To keep up with rising living costs, your cover will automatically increase each year by the CPI rate or 5% (whichever is the greater).
Backed by Hannover Re Group, the world’s 3rd largest reinsurer.
Choose your cover
Life insurance can help you not only if you pass away, but also if you’re unable to work due to illness or injury.
Life Cover, also known as a ‘death benefit’, is the main type of life insurance. It can pay you or your beneficiaries a lump-sum benefit should you die or be diagnosed with a terminal illness that results in a life expectancy of less than 12 months.
Add to your Life Cover
While Life Cover protects your dependents against the financial consequences of your untimely death, there are other illnesses and injuries that are non-fatal but which could still cost you your livelihood.
For added peace of mind, you have the option of adding the following cover to your Life Cover policy:
Total and Permanent Disability (TPD) Cover
TPD insurance can pay you a benefit in case, as a result of serious sickness or injury, you lose your sight or the use of your limbs or are unable to work in any occupation for which you are reasonably suited by education, training or experience; or cannot live independently.
Trauma Cover can pay you a benefit in the event you suffer from one of four common ‘trauma events’ that force you to take extended time off work: cancer, coronary artery bypass surgery, heart attack or stroke. If you want to be covered for more ‘trauma events’, you can choose Trauma Plus.
Children’s Cover can pay you a benefit should your insured child die, be diagnosed with a terminal illness, or suffer a specified illness or injury. This benefit could allow you to take time off work to provide extra care and support for your child, for example.
Income Protection Cover can pay you a monthly benefit if you suffer a serious injury or illness and cannot work. It means you can focus on getting better, without worrying about how you’re going to pay the bills.
Accidental Death Insurance can pay a benefit should you suffer an accidental death. (If you also have Life Cover and die accidentally, your beneficiaries could receive two lump sum payments upon your death.)
Budget Direct life insurance covers a wide range of unforeseeable events that can result in you getting seriously ill or injured or dying, leaving you unable to work and earn an income for a long time, if ever again.
The following table helps you compare the different types of life insurance cover we offer, so you can choose one or more to suit your needs and budget.
|Benefit and features||Life Cover||Express Life Cover||TPD Cover||Trauma Cover||Children’s Cover||Accidental Death Insurance||Income Protection Cover|
|Add-on to Life Cover||No||No||Yes||Yes||Yes||No||No|
|Covered For||Death or terminal illness||Death or terminal illness||Total and permanent disability||Specified serious illness or injury||Death, terminal illness, or specified serious illness or injury||Accidental death||Serious illness or injury that prevents you from working|
|Minimum age (next birthday) at entry||18||18||18||18||2||18||19|
|Maximum age (next birthday) at entry||64||50||59||59||17||64||60|
|Benefit Amount||$50,000 - $1,000,000||$50,000 - $300,000||$50,000 - $1,000,000||$25,000 - $500,000||$20,000 - $50,000||$50,000 - $500,000||Up to 75% of your income (capped at $10,000 per month)|
|Waiting period||No||No||No||90 days||90 days*||No||30 or 60 days‡|
|Guaranteed cover until your...||100th birthday||100th birthday||65th birthday||65th birthday||Child's 21st birthday||75th birthday||65th birthday|
|Increase/decrease your cover (and premium) at any time†||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Available to part-time workers and homemakers||Yes||Yes||Yes||Yes||Yes||Yes||
Minimum 20 hours work per week
|No medical or blood tests||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|30-day cooling-off period||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Worldwide cover 24/7||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
*Waiting period applies only to specified serious illness or injury; death and terminal illness are covered immediately upon acceptance of your application.
† Increases are subject to your age and the benefit amount limits.
‡ During the waiting period, you must be unable to work due to your illness or injury. If a doctor confirms you’re still unable to work at the end of this time, we will pay you monthly benefits in arrears.
Find out more
The information on this page is a summary only. For more details about Budget Direct life insurance, including the terms, conditions, limits and exclusions that apply, please read the Product Disclosure Statement (PDS).
How to make a claim
How much life insurance cover do I need?
It’s up to you to decide how much cover you need.
Depending on your situation, you may want to cover things like your debts and your dependents’ daily living expenses, minus the value of any liquid assets – those that you’d be comfortable to sell in the event of a calamity (e.g. investment property, savings, shares).
Use our life insurance calculator to get an indication of how much cover you need.
Frequently asked questions
Why do I need life insurance?
Life insurance is a way to protect you, your partner and children from financial hardship in the event you pass away or become seriously ill or injured and cannot work. It can help you and your loved ones continue to pay bills like the mortgage or rent, groceries, transport, utilities and school fees.
How much cover can I get?
Why would I need TPD Cover and Trauma Cover?
If you have TPD Cover only, you won’t be insured if you suffer a trauma event like cancer or a stroke that doesn’t prevent you from returning to work. And if you have Trauma Cover only, you won’t be covered for musculoskeletal conditions and other events that leave you totally and permanently disabled but don’t meet the definition of a trauma event.
What’s not covered?
There are some circumstances in which we will not pay a life insurance claim – these are called ‘exclusions’. For example, we will not pay a policyholder’s claim if:
- he or she dies or has a terminal illness as a direct or indirect result of a self-inflicted injury within 13 months of their Life Cover commencing;
- we have agreed to a term in their policy that specifically excludes the event or condition that led to the claim.
Are life insurance payouts free from capital gains tax?
It depends on who is listed as the beneficiary, and who actually receives the insurance payout. Provided it goes to the injured or ill party or one of their family members, the payout is typically exempt from capital gains tax. For more information, speak to an accountant or tax agent.
We provide life insurance cover for Australians, whatever stage of your life you’re in, including: