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Considering life insurance? Your top questions answered

If you are considering life insurance for the first time, the experts at NobleOak have provided these answers to some of the most frequently asked questions.

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  • Finance
  • Read Time: 5 mins

Key points

  • Life insurance can be for a set term or pay out on death.
  • You can take out extra policies for different needs.
  • National Seniors has partnered with NobleOak to present their Life Insurance to our members. National Seniors members receive a 17% lifetime discount on life cover.*
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The journey of understanding, and potentially purchasing, life insurance can be tricky if you have not been down that track before.

If you are considering life insurance for the first time, the experts at NobleOak have provided these answers to some of the most frequently asked questions:

What is term life insurance?​

Term life insurance provides coverage for a specific period (term) and pays out a death benefit if the insured person passes away during that term.

With NobleOak Life Insurance, you can maintain your cover until the age of 99 if you so wish.

When should you buy life insurance?

The most suitable age or life stage to buy life insurance can vary depending on your individual circumstances and financial goals. However, there are some general guidelines that can help you determine when it might be a good time to purchase life insurance.

When you have dependents: If you have a spouse, children, or other dependents who rely on you to cover some or all of the living expenses, it is a good idea to consider life insurance. This ensures that your loved ones will have financial support in case of your untimely death.

When you have debt: If you have significant debts, such as a mortgage or credit card debt, life insurance can help cover those debts, so they do not become a burden on your family if you pass away.

When you want to leave a legacy: If you want to leave an inheritance or financial legacy to your loved ones or a charity, life insurance can help ensure that your beneficiaries receive a tax-free payout upon your death.

When you want to cover final expenses: Even if you do not have dependents, life insurance can help cover your funeral and burial expenses, relieving your family of this financial burden.

It is important to assess your specific financial situation, goals, and responsibilities to determine the best time to buy life insurance. Your life insurance needs can change over time, so it is a good practice to periodically review and adjust your coverage as your circumstances evolve.

Can you have two life insurance policies?

People often purchase multiple life insurance policies for various reasons, such as to increase their overall coverage, diversify their investments, or meet different financial needs.

Here are a few reasons why someone might consider having multiple life insurance policies:

Income replacement: If you have dependents and need to provide for their financial security in the event of your death, you might purchase one policy to cover immediate expenses and another to cover long-term needs, such as mortgage payments and college tuition.

Diversification: Some people choose to diversify their insurance coverage to spread risk and manage costs. This can involve having policies from different insurers.

Topping up life insurance within superannuation: Some people may decide to top up their life insurance in their superannuation if they feel it falls short of their needs. The Rice Warner Underinsurance in Australia 2020 report indicated there is an insurance gap between how much cover many Australians have through super, and how much they may need. The report reveals, “the median default cover of superannuation funds meets approximately 65% to 70% of basic level death cover needs for average households, but a much lower proportion for families with children”.

If you are thinking about purchasing or holding multiple policies: Keep in mind that when you apply for multiple policies, insurers may require you to provide information about your existing coverage, and they will assess your eligibility based on your overall insurance needs and financial situation. Additionally, premiums will be based on factors such as your age, health, and the type and amount of coverage you are seeking.

This article has answered some of the key questions that you might have on your journey to buying life insurance. It may also be helpful to visit a comparison site such as Canstar or Finder to be able to compare various life insurance policies and further determine what suits your requirements before you take the next step. 

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This brochure aims to shed light on Life Insurance during these turbulent times. We believe that knowledge empowers and equips you to make informed decisions that can safeguard not only your own future but the future of your loved ones.

We encourage you to explore this brochure to discover the full range of benefits that life insurance can offer.

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Important notice - National Seniors is a marketing partner with NobleOak Life. We present factual information only about NobleOak’s products. We do not provide any financial advice or services. Any financial advice in this material is general advice only, from NobleOak Life Ltd AFSL 247302. Always consider your own situation, and the PDS and TMD provided by NobleOak. 

Legal statements.

*National Seniors members are entitled to a 17% discount (which remains for the life of the cover) on NobleOak’s My Protection Plan standard premium rates on Life Insurance cover.

My Protection Plan is issued by NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302. Address: 44 Market Street, Sydney VIC 2000. Phone: 1300 108 490. Email: Cover is available to Australian residents and is subject to acceptance of the application and the terms and conditions set out in the Product Disclosure Statement (PDS). This information is of a general nature only and does not consider your individual objectives, financial situation or needs. Before you purchase an insurance product you should carefully consider the PDS to decide if it is right for you. The PDS is available by calling NobleOak on 1300 108 490 or from Clients should not cancel any existing Life Insurance policy until they have been informed in writing that their replacement cover is in place. NobleOak cannot provide you with personal advice but our staff may provide general information about NobleOak Life insurance. Please note any online quotes are indicative only so please contact NobleOak on 1300 108 490 to apply for cover and to verify your actual premium, which will take into account your age, occupation, sum insured, health and pastimes. By supplying your contact details, you are consenting to be contacted by NobleOak, in accordance with NobleOak's Privacy Policy.

Remuneration disclosure - National Seniors receives on ongoing fee from NobleOak equivalent to 12.5% of premiums (and Member Solutions Pty Ltd receives 5.5% for its role as programme design consultant) for insurance cover acquired as a result of the marketing arrangement; this is at no additional cost to customers.

Reference: Rice Warner

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