Life insurance is designed to help look after the people who depend on you by providing financial security and peace of mind when life takes an unexpected turn – but not all policies work the same way. The differences might seem small, yet they can have a big impact when it counts.

One of the key distinctions lies in how the policy is purchased. Policies can be fully, partially or not underwritten. Choosing the right approach may affect the cost of premiums, the reliability of the cover and long-term peace of mind.

Speed vs security

Fully underwritten life insurance involves a detailed assessment of your health, lifestyle, occupation, finances and even future travel plans, explains Miguel Cortes, senior manager, direct product and propositions at NobleOak.

“It generally provides greater certainty at claims time because the insurer has a complete understanding of someone’s health and life situation,” he says.

In contrast, partially underwritten cover can be arranged quickly but often comes with trade-offs. Premiums tend to be higher because insurers may need to account for unknown risks.

“Customers also have less certainty at claim time, which contradicts the main reason people purchase insurance,” adds Cortes. “The omitted information during the quick application process may be required when the insurer assesses a claim.”

Selecting an insurer

Considering that life insurance products, including traditional life cover, income protection, trauma cover and total and permanent disability (TPD) are available through superannuation funds, financial advisers and directly from insurers, it makes sense to choose a provider with a strong track record. Critical illness cover is usually only offered directly by insurers or via financial advisers, rather than through superannuation.

Direct access to a specialist insurer allows you to choose tailored policies.

NobleOak has been operating for 145 years and is one of Australia’s most awarded specialist insurers and is the only life insurer to win Canstar’s Outstanding Value Award for its Premium Life Direct life insurance product and income protection insurance product for 10 years running.^

“NobleOak offers a life insurance calculator that allows you to estimate how much cover you may need based on your income, expenses and lifestyle. It may help you make an informed decision about what you can realistically afford,” says Cortes.

“Even if the recommended level of cover is higher than your budget, having some protection is usually far better than having none.” 

Get a life insurance quote

NobleOak is an Australian CA ANZ Member Benefits Partner. Click this link to get a quote today.