Are my life insurance premiums tax-deductible?

Life insurance can be tax-deductible, depending on the type of policy and how you purchase it. For instance, while life insurance bought outside super generally isn’t tax-deductible, it can be when purchased through super. However, income protection insurance is typically tax-deductible regardless of how it’s purchased. Speak with your accountant to double-check whether you’re able to claim your premiums as a deduction if you’re unsure.

Can I bundle together different types of life insurance policies?

Yes – combining different life insurance policies and purchasing with the same insurer may enable you to access a discount on your cover. If you’re looking to purchase multiple policies, such as life cover and income protection insurance, it may be worth comparing different providers to see whether you can save money by doing so.

Can I take out life insurance as a senior?

There are life insurance policies available on the market which are designed to cater to seniors . However, whether your insurer can offer you the coverage you’re looking for will depend on a variety of factors, such as your age and whether you suffer from any pre-existing health conditions. For instance, policies will have a maximum entry age, which may vary from 60 to 75 depending on the policy and insurer, and most will also have an expiry age, which may be set at 99 (though some insurers may set this as high as 130).

Will I be taxed on any lump sum payment I receive from my life insurance cover?

This will depend on the nature of your payout and who your beneficiaries are. For example, policies which come with a lump sum payout and go to a financial dependent, such as your partner or child, are generally tax-free. However, income protection insurance benefits are generally taxable, as are payouts going to a non-dependent person or persons. Check with a financial professional if you’re unsure whether you or your family may need to pay tax on a life insurance benefit.

Am I able to access life insurance coverage if I have pre-existing health conditions?

Whether you can take out life insurance coverage with a pre-existing condition will largely come down to the nature of the condition and your insurer's terms and qualification criteria. Some of the ways pre-existing conditions may be dealt with under a life insurance policy include: A loading (additional premium) may be charged to cover your condition Cover may be provided if you haven’t experienced symptoms or treatment for a set period, such as five years Specific exclusions may apply for certain conditions Some may apply a blanket exclusion for all pre-existing conditions