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Is your work, TV, or smartphone taking precedence over your shut-eye night after night?

Many people worry about their diet, exercise regime or alcohol consumption without considering at all how sleep deprivation affects their health. Not having enough sleep attacks the biological functions at the heart of physical and mental health. In fact, countless studies and reviews of these studies have all shown sleep deprivation lead to an early grave.

What is sleep deprivation doing to your body? How much sleep do really need? What are the signs that you’re over-tired? How can you get better sleep? Read on to find out.

 

What Does Sleep Deprivation Do to Your Body?

Weakened Immune System

Researchers have found that young men who do not get enough sleep have elevated levels of the white blood cells, particularly “granulocytes.” These white blood cells are responsible for responding to a threat to the body’s immune system.

But why would your body see sleep deprivation as an attack on your health?

While you’re asleep, your body takes care of all of the regenerative jobs needed to keep it healthy. Without sleep, these regeneration processes aren’t completed, and that makes you more likely to get sick and stay sick, or have a slow healing time for any injuries you may have.

Increased Stroke Risk

Getting less than six hours of sleep a night also increases your risk of stroke – regardless of your age or how healthy you otherwise might be! The reason behind this finding is not clear, but scientists suspect that chronic sleep deprivation raises blood pressure and heart rate, and affects blood sugar levels. All of these factors can contribute to chronic inflammation of your organ systems and may cause strokes.

Premature Aging

Lack of sleep reduces the amount of human growth hormone your body releases. Human growth hormone is responsible for, as you may guess, helping you grow when you’re young. However, once you stop growing, human growth hormone then takes on the task of maintaining your body’s muscle mass, thickening skin and keeping bones strong. If you don’t have enough of this hormone running through your body, you will deteriorate at a quicker rate.

Cardiovascular Disease

The way sleep deprivation negatively affects the heart is one of the most well-documented ways a lack of sleep can harm you. Lack of sleep inflames the cardiovascular system, promotes cholesterol plaques and leads to atherosclerosis. For these reasons, people who suffer from chronic lack of sleep have double the risk of death from cardiovascular disease.

Obesity & Diabetes

Not getting enough sleep can lead to weight gain in a number of ways. It makes you too tired to get enough exercise, more inclined to over eat, and affects the hormones that control your metabolism. When your body isn’t resting well, it is unable to metabolise fat or regulate blood sugar levels adequately, which causes heightened levels of fatty acids in the blood. All of these effects heighten your risk of developing Type 2 diabetes and getting, well, fatter.

Mental Health

Mental health is one of the first faculties affected by sleep deprivation. The negative impacts sleep deprivation has on mental health can range from disordered thought, irrationality, drops in cognitive function and memory loss through to social incompetence, incoherent speech, hallucinations and even complete breaks with reality. This makes you more likely to make poor decisions which will put you at risk.

 

How Much Sleep Do I Need?

Your sleep requirements will vary depending on what stage of your life you are in. There’s no “magic number” of hours, but the Australian Centre for Education in Sleep recommends the following guidelines:

• Babies under 1: 14-18 hours throughout the day and night
• Toddlers: 12-14 hours per 24 hour period
• Primary school: 10-12 hours per day
• High school: 8-10 hours per day
• Adults: 7-9 hours per day

 

How Can I Tell If I’m Sleep Deprived?

Are you feeling unusually hungry? One of the first signs of sleep deprivation is an increased appetite. As you get over-tired, your body produces more of the hunger hormone called “ghrelin” and less of the satiating hormone called “leptin”– this is your brain trying to use food to recover the energy it isn’t getting from sleep. So you’re more likely to binge on high-calorie foods when you are tired. The result? A fatter you.

Have you noticed your inhibitions lowering? A University of Oxford study* has found that being tired is a lot like being drunk. When you’re too tired, you become more impulsive, your judgement is skewed, and you find yourself exerting less control over your behaviour. These lowered inhibitions may take the form of being snippy with a friend, finding it difficult to say no to people, or even making poor decisions at work.

Are there things you just keep forgetting? Memory is one of the first mental functions to hit the wall when you’ve missed out on sleep. When you’re tired, not only does your attention lag when you see something you should remember, but your brain doesn’t get the “consolidation” time it uses when you’re sleeping to store your memories.

Have you been feeling indecisive? As stated above, sleep deprivation can affect how fast you can think and your other cognitive processes. If you’re too tired, you can forget about all the faculties you need to make decisions related to problem-solving, time management and emerging crises.

Are you unusually uncoordinated? If you’re fumbling, dropping things, or tripping over a few times a day you might be too tired to concentrate on what your body is doing.

What about just feeling generally crazy? The fact that everybody gets cranky when they are tired is not exactly big news. However, most people don’t realise that the effects of sleep deprivation can also go the other way, triggering all sorts of out of control emotions, including sadness, happiness, anxiety, and excitement to full-blown psychosis.

Have you been feeling under the weather for a while now? Because lack of sleep takes a toll on your immune system, if you’re sleep-deprived you’ll not only be more susceptible to getting illnesses like the common cold, but you’ll find them harder to shake. In fact, scientists have discovered that people who get less than seven hours of sleep a night are three times more likely to get a cold than well-rested people.

Is your vision out of whack? Fatigue makes your eyelids droop and significantly lowers your ability to control your eye’s muscles. Which eye muscles? Well, the one that makes your eye focus (the ciliary muscle), the ones that move your eyes around (the extra ocular muscles). If your vision is blurring, or you often see double, this might mean you need to get to bed earlier.

Are you getting wrinkly and pimply? Your body produces collagen – the protein that keeps your skin looking lush and plump – while you sleep. Your hormones also get regulated while you sleep, and studies have shown those with less sleep have less skin recovery and more estrogen levels in the blood. Higher estrogen + less collagen = bad skin.

 

How to Get More Sleep

Below are a few pointers to help you get your sleeping patterns under control:

• Set a bed-time and stick to it! Going to bed at the same time every night will train your body to rest when you need it to and will help you fall asleep faster.
• Spend time in the daylight and turn off your screens at least 30 minutes before going to bed. The amount of light your eyes are exposed to, and when you take this light in, are the factors your body’s “master clock” relies on to set itself. This master clock is then responsible for setting your body’s other biological clocks, which is why it’s so important to have it working properly!
• If sleep is a constant concern for you, consider getting a sleep apnoea test. According to Snore Australia, “Around 9% of women and 25% of men in Australia have clinically significant obstructive sleep apnoea and 4% of men and women have symptomatic obstructive sleep apnoea.” You don’t have to be overweight or old to be affected by sleep apnoea, so don’t be embarrassed. Getting checked could really improve your quality of life!
• Exercise! Being physically exhausted triggers a plethora of hormonal responses designed to put you to sleep.
• Cut back on consuming caffeine after lunch.
• Put together a list of relaxing activities you can do – even for just fifteen minutes – before you go to sleep. Choose one every night and do it without fail.
• Wait until you start yawning before you go to sleep. Yawns are your body telling your brain that it’s ready to sleep, and it’s important you don’t ignore the first batch of yawns you have.

 

* The document for this study has since been removed.

For most people, their ability to earn an income is their greatest asset. And yet, while we don’t think twice about insuring our car or our house, Map My Plan’s 2015 Financial Fitness report shows that less than a quarter of working Australians are insuring their income.

The question is: why?

For the most part, it’s probably because they’re simply not aware of the facts about income protection insurance and the significant benefits it provides. But another, more alarming reason is the myriad of myths and misunderstandings surrounding this particular type of life insurance.  

From believing that you’ll be adequately covered by the government or your super fund to straight out assuming that young, healthy people don’t need it, there are countless myths and stories swirling around that are keeping Australians from properly protecting their income.

But despite what is thought to be common knowledge, income protection insurance is a vital consideration for anyone who earns – and relies on – an income. Read on to separate the facts from the fiction!

 

Myth #1: I already have enough life insurance

Income protection insurance, while another form of life insurance, is actually very different to standard term life cover. Instead of paying out a lump sum benefit to your dependents after you die, income protection insurance works by replacing your income if you are suddenly unable to work because of an illness or injury.

It pays up to 75% of your current income in monthly instalments, allowing you to continue to meet your ongoing costs and living expenses – which aren’t going to stop just because your income does!

In fact, the report found that one in four working Australians already struggle to pay their bills on time and make ends meet. Many also have insufficient emergency savings, with 30% of people saving less than $100 a month, and a frightening 10% with so little saved up that they would fall into debt if they were to lose their job (or stop working for a time).

Having a backup income plan in place will go a long way to helping you get through a period where you were too ill or injured to work, and this is more important than ever if you don’t have much in savings. How would you fund your treatment and rehabilitation costs as well as pay for your bills, rent or mortgage, and household expenses?

So while income protection insurance and life insurance are indeed very different insurance products, they actually work hand-in-hand to provide ongoing financial protection and support no matter what happens.

 

Myth #2: Young, healthy people don’t need it

When you’re in the prime of your life, you don’t want to think about things not going to plan. But the fact is, anyone can get sick or injured to the point of not being able to work, no matter how young and healthy you are.

Misfortunes can strike at any time and it’s vital to be prepared, because without an income, even the smallest costs of daily life can be a huge burden to meet. And if you’re unwell or injured and trying to recover, this will be a huge added stress in an already difficult time.

The good news is that when you’re young, premiums are lower and very affordable – even on a single income. For example, an 18-27 year old male in a clerical role can take out a TAL Income Protection Plan of $2,000 per month (which won’t completely replace your income but would be enough to keep you afloat until you returned to work) for around just $35 a month.

That’s comparatively less than what you’re likely to spend on coffee or take-out!

The bottom line? Just because you’re young and healthy, it doesn’t mean you’ll never need a backup plan. It always pays to be prepared. 

 

Myth #3: My private health insurance will cover me

Private health insurance will certainly cover you for some of your medical expenses if you’re being treated for an illness or injury. But unfortunately, that’s where it starts and stops. Private health cover is only for medical bills related to your treatment and recovery, and won’t provide any sort of income stream or payment to help you cover your household bills and debts.

Basically, it won’t replace a lost income.

And what’s more, many private health insurance plans won’t cover the total cost of your treatment or rehabilitation, either. Depending on the level of cover you have, it could leave you with a significant gap that you’ll need to pay out of pocket.

To make sure you have every angle covered, it’s important to have a complete protection plan in place which includes both private health insurance and income protection insurance (or other forms of life and disability insurance). This will ensure that no matter what happens, you’ll always have a replacement income to fall back on.

 

Myth #4: The government will look after me if I get sick

While government assistance is available through Centrelink for people with a temporary illness or injury and can’t work, it’s not a sure thing. There are a number of rules and requirements you have to meet to be eligible, and even if you do manage to get through all the red tape, the allowance won’t take you far.

The Sickness Allowance pays a maximum of $527.60 per fortnight for a single adult with no children if you’re temporarily unable to work because of an illness or injury, which isn’t even close to the average Australian’s fortnightly wage. If you do have children you could receive a maximum of $570.80 per fortnight, and if you’re partnered the maximum you can each receive per fortnight is $476.40.

So while the government will provide some assistance, it’s in no way enough. With ongoing bills and household costs to cover, as well as your treatment, rehabilitation and medical expenses as you recover, you’ll be left with a massive funding gap that adequate income protection insurance could easily save you from.

 

Myth #5: I’m covered through my super

You might already have income protection through your super fund, but there’s a very high chance that you probably don’t have enough. The default level of cover is typically quite low, will only cover you for a certain length of time, and is based on the overall number of members within the super fund – meaning it’s unlikely that you’ll have enough to cover all your expenses when you don’t have an income to fall back on.

Plus, the life and income protection insurance policies included in your super are usually indemnity value based, which means that when you claim, the benefits you receive will be determined by how much you’re earning at the time.

If you do already have cover under your super fund, it’s important to find out exactly how much and if necessary, either top it up or take out a second income protection policy outside superannuation to cover the shortage.

 

Myth #6: My sick leave or workers’ compensation will provide cover

This is true, but only to an extent. Neither will provide adequate cover for an extended period of being unable to work and earn an income.

Sick leave for most employed Australians is about 10 days or 2 weeks a year, and once your sick leave and any other personal, annual or other type of leave is used up, your employer is not obliged to keep paying you in your absence. And if you are self-employed, then any time you take off is only coming out of your own pocket.

Workers’ compensation, meanwhile, only covers accidents or injuries that happen in the workplace (and then only if you are eligible to make a claim). This means that for the wide majority of accidents and illnesses that are not directly caused by your job, you’re not covered.

According to the Australian Bureau of Statistics, 531,800 people experienced a work-related injury or illness in 2013-14. Of those, only 34% received financial assistance through workers’ compensation, leaving the greater majority of workers without any sort of financial support through their recovery.

The bottom line: you can’t rely on your sick leave or workers’ compensation to adequately cover you when you’re temporarily unable to earn an income. It’s not a guaranteed thing, and when it comes to your livelihood, you simply can’t afford to take the risk. 

 

Myth #7: It’s too expensive

This is one of the most common – and most mistaken – reasons for why so many people don’t take out income protection insurance. But for most Australians, a moderate level of income protection cover is actually very affordable. It’s generally no more than 3% of your annual income, and if you opt for fewer extras, can be as little as 1.5%.

Plus, it’s usually tax-deductible! And if you choose to hold some of the insurance in your super fund, the premiums are paid out of your account balance instead of your income so you won’t even notice it.

There are plenty of options available for affordable income protection insurance. And when it all comes down to it, the benefits of protecting your income, health and lifestyle no matter what happens always far outweigh the costs.

The decision to take out life insurance is a very important one, and one that shouldn’t be taken lightly or made on the spur of the moment. Whether you’re considering term life, income protection, TPD or trauma insurance, it’s essential that you talk to a professional and independent life insurance adviser beforehand to get a full understanding of your various options.

With a little bit of legwork and some expert advice, you can get the valuable peace of mind and financial protection you and your family deserve. Here are the 10 most important questions to ask your adviser to make sure that they – and the cover they can provide – is right for you:

 

#1: What type of life insurance should I choose?

There is a range of different life insurance options available including term life, income protection, total and permanent disability, and trauma insurance. The benefits, features and costs of each will vary, and the type of cover you choose will depend on what you need from your policy.

A good insurance adviser will explain the different types of policies available and help you compare their benefits and costs, to decide which one is best suited to you and your family.

 

#2: How much cover do I need?

Like with the type of cover you choose, the amount of cover you decide on will depend on a variety of factors such as your lifestyle, financial commitments, future plans and personal circumstances.

Everyone’s needs will be different so there is no standard answer to this question, but your adviser should help you determine the appropriate amount of cover by thoroughly assessing your income, assets, liabilities, lifestyle and circumstances both short- and long-term.

 

#3: How much will my cover cost?

Again, this will depend on the type and amount of cover you want. While the cost is a very important factor when choosing insurance, you need to make sure you also take into account the features, benefits and limits of the policy in relation to its price to work out whether you’re getting good value for money.

 

#4: What sort of discounts are available?

Many people aren’t aware you can even ask for discounts, but a lot of insurance providers do offer specific discounts for eligible clients such as those in a particular age group, on a group policy, or who have paid the policy in full.

It may require a few adjustments to your policy, but it can be well worth talking it through with your insurance adviser if it means saving on the total cost of your cover.

 

#5: What is not covered in the policy?

Don’t overlook the importance of exclusions – it’s vital that you go through them in detail with your adviser to make sure you completely understand what is and isn’t covered under the plan you are considering.

Not only will this save you a lot of time and heartache in the future if you do need to claim, but it also ensures that if you need something specific covered now or in the future, then you’ll be able to get the right cover from the beginning. 

 

#6: How do you handle my claims?

The claims process will vary between providers and policies, so it’s worth finding out what the process involves. Ideally, you’d like one that’s simple and straightforward, and that your insurance adviser can either take care of for you or can help you through.

Understanding the complexities and intricacies of insurance law and making a successful claim is your adviser’s specialty, and they should be able to discuss all the finer details with you as well as make it easy to claim if the need arises.

 

#7: What are my guarantees?

For insurance policies such as term life, income protection, TPD and trauma insurance, there are some aspects that policies are guaranteed to cover. For example, some policies are guaranteed to remain at a steady rate despite any changes in the economic market, while some may be affected by any changes to your health, income or lifestyle over the period of your policy.

Ask your adviser about these beforehand to make sure you won’t be hit by any unexpected rate rises or changes to your premiums or deductibles.

 

#8: What are the policies for adjusting rates?

In a similar vein to guarantees, it’s important to find out what your provider’s policy is on rate adjustments. Some providers won’t inform customers when the rate changes, and while you probably won’t notice if the rate goes down, you’ll certainly notice if it goes up.

To avoid getting caught out by a surprise rate increase, find out what the policies are about premium adjustments before you commit to cover.

 

#9: When does the cover start?

It’s always a good idea to check with your insurance adviser about the exact date that your cover starts, so you know when you’re being covered from. In some cases, there can be a delay between signing the policy and when the cover actually starts.

 

#10: What happens if I can’t pay?

If something were to happen in the future and you suddenly weren’t able to meet your life insurance payments, you need to know what your options are. Many insurance providers will have some sort of contingency plan in place, such as an option for income protection insurance together with your life insurance to help you pay your bills if you suddenly lose your income.

Whatever you choose to do, just remember that losing a policy that you’ve been paying into for several years – or even decades – can be a huge financial loss. So being prepared for the worst is never a bad decision; find out what your options are and don’t be afraid to ask more questions.

While there are numerous other questions worth asking your insurance adviser before you commit to a particular policy, these are the most important. Your adviser is there to help you secure your family’s future, so make sure you take advantage of the service to get the cover that’s right for you. 

Check out our Frequently Asked Questions or get in touch with one of our insurance advisers for yourself to find out more about the comprehensive service we provide to help you make sure you’re getting the right cover.

With so many providers, products, features and pricings on the market, it’s no wonder that many Australians question whether they can get a better deal on life insurance.

Chances are, you can get the life insurance products you want for less than you’re currently paying.

If you’ve repaid your mortgage, the kids have left home, you’ve got a healthy amount of savings tucked away or the dangerous past times you used to engage in have stopped, you may not need the same level of cover you once required.

Or, if reducing day-to-day expenses is your goal, there are ways to save money without having to abandon your policy or settle for less cover than you need (after all, if you’re struggling now just imagine what it will be like for your family if you pass away and you’re underinsured!).

Whatever your reasons for wanting to reduce your life insurance premiums are, saving money without having to compromise on the quality of your life insurance products is entirely achievable.

Here’s how:

 

Consolidate Your Super Insurance

If you have life insurance already included in your superannuation, consider consolidating this cover with your current life insurance fund. Combining covers will save money that you would otherwise be spending on unnecessary fees and premiums.

 

Compare Your Current Policy

Talk to an insurance adviser to see if you are getting the best value for money with the life insurance you already have. Chances are, you may be holding on to a policy that is:

• Outdated and no longer reflects the level of cover you require
• Charging uncompetitive rates/li>

If you’re healthy, there’s no reason not to make the switch to a provider offering better value – even if it means taking another medical examination.

 

Opt for a Longer Waiting Period

If you have income protection insurance, the amount of time you must wait before being eligible to claim on your policy is known as the waiting period. If you are in a position to financially support yourself for a period time in the event of you losing your income through illness or accident, it is cost effective to extend the waiting period on your policy, as this will reduce your premiums.

The reason for this is that a longer waiting period gives the insurer less chance of having to make minor payouts over the life of your policy. Consider: with a 14-day waiting period, you must be completely off work for 14 days before you are eligible to make a claim. Once this 14 day period has expired, if you meet the remaining conditions of your policy you will be eligible to receive a benefit payout for as long as you continue to meet these conditions; effectively, as long as your are still prevented from working by your disability. The same applies with a 90-day waiting period.

However, it is much more likely that you will become disabled and off work for a period of, say, 30 days whilst you recover from some injury (and thus be eligible to claim for two weeks’ income replacement) than it is that you will be off for three whole months and be eligible to claim before going back to work. In this sense, whilst the insurer will still pay your benefit in both cases if you are permanently disabled, this risk to the insurer of having to pay temporary benefits is greater the shorter your waiting period. Accordingly, premiums cost less.

Income Protection insurance is designed to provide you with an ongoing benefit if you lose your income due to illness or accident. If you are in a financial position to provide for yourself for three months should you be unable to work due to disability, a 90-day waiting period will be an effective way of reducing your premiums and therefore the total cost of your insurance.

 

Work on Your Health

Along with your age, your physical health is one of the biggest factors determining how much your life insurance policy is going to cost.

If you can demonstrate that your health has radically improved since your initial medical assessment, you may find yourself with a more appealing risk profile that warrants a decreased premium.

Ways that you can adjust your lifestyle and save money on life insurance include:

• Quitting smoking: You can apply for life insurance that’s charged at the standard rate at least 12 months after your quit date.
• Reducing or eliminating alcohol consumption: If you can show that your drinking habits have permanently changed for the better, you may be bumped down a risk category.

Losing or gaining weight: Working on your fitness so that you fall within a healthy BMI category and then maintaining that healthy weight is one of the best ways to secure lower premiums.

 

Get Covered While You’re Young & Lively

When it comes to buying life insurance products, the biggest mistake you can make is waiting until you’re older to get covered. Applying while you’re young and healthy will give you the best chance of securing a lifelong policy that costs the “standard” premium rates.

 

Enquire About Pausing Premiums

If for any reason, you are experiencing severe financial hardship and cannot afford to pay your life insurance premiums, the first thing you should do is talk to your insurer about temporarily pausing your payments.

Most insurers allow their clients a few months over the life of their policy wherein they can “pause” their premiums. Or, sometimes insurers give their customers the option of “freezing” the cost of their premiums in return for a reduced amount of coverage.

Enquiring about these grace options could mean the difference between getting enough monetary breathing room to keep your policy and letting your policy lapse and losing the lower premium rates you were able to attain by obtaining coverage at a young age.

 

Swap Your “No Medical” Coverage

Chances are, if you opted to get “no medical” coverage when you first bought your life insurance, you are paying an exorbitant premium for the pleasure. You’re better off just biting the bullet, getting the medical examinations required by a competitive policy out of the way, and enjoying the thousands of dollars you’ll be saving later down the track.

 

Ask for Advice

Most people are not experts when it comes to navigating the complex world of life insurance. If you need help understanding which options will work best for you, then you’ve got nothing to lose by picking up the phone and calling an adviser.

Our team of life insurance advisers understand the different underwriting guidelines each of our premium partners uses, and can help you compare life insurance policies to find one best suited to your needs. These underwriting guidelines are how insurers determine how important various risk factors are. For instance, some insurers will place sufferers of all types of heart problems in the “high risk” category whereas others will look at heart issues on a case-by-case basis and determine the risk category according to an individual’s particular prognosis.

Because each insurer will assess a person differently, getting advice from an experienced industry professional could end up saving you thousands of dollars over the rest of your life, and put your family in a better financial position when you pass away or if you find yourself with serious medical problems later on in life.

If the thought of tackling a lengthy application process is putting you off applying for life insurance, we understand your struggle. It can be overwhelming if it’s your first time purchasing a life insurance policy. But there’s no need to stress; we’re here to help!

We want to explain the application and assessment process in simple terms. By giving you a better understanding of the processes in place, why they are there and what they achieve, we hope you will feel more confident about approaching us at Cover Australia for a life insurance quote.

 

How do I Receive Life Insurance Advice?

It is always important to start your life insurance journey by seeking advice from an experienced adviser. Then once you’ve chosen a life insurance product, your adviser will guide you through the application process.

Life insurance advisers are experts in the industry and know all the ins and outs of getting you the best deal and the most comprehensive cover for your specific needs. An adviser can talk you through the application process, informing you about the steps you need to take, the information to be provided, and the process involved to get you covered.

Don’t feel like you are going at it alone. By having a knowledgeable adviser by your side throughout the process, you’ll always have someone to turn to if you have any questions about the application process and the cover itself.

 

How do I Lodge an Application?

The first step you need to take to obtain life insurance cover is to submit an application with a life insurance provider. Once the application is submitted, assessments will then take place.

Depending on the details you will be asked to provide, there are three different ways an application can be lodged:

Your adviser can submit your application answers directly on your behalf

You can answer application questions over the phone

You can fill in a physical application that your adviser will submit on your behalf

 

What Information do I Need to Provide in an Application?

To ensure the insurance provider can accurately assess your eligibility for life insurance, a number of documents are often required. Depending on the insurance provider and level of cover you choose, the information you may need to deliver includes:

• Age
• Gender
• Residency
• Occupation
• Medical history
• Sports and rectional pastimes
• Financial status

It’s always important to be honest about your personal details and medical history so you can receive an accurate assessment and an outcome that correctly reflects your needs and situation.

According to Bankrate, a two-year contestable period is included with most standard life insurance policies meaning that the policy can be withdrawn by the insurance company if it’s found that you lied on your application.

 

How am I Assessed for Life Insurance?

An underwriter is responsible for evaluating life insurance applicants, and it is their job to determine the level of risk associated with the person applying for the cover. To do this, your personal details and medical history are evaluated and carefully considered to decide on the conditions and pricing that will be applied.

Underwriting is necessary for most life insurance policies, however, it’s not required for default life insurance options provided by workplace schemes and superannuation. According to TAL, their life insurance underwriters along with all others aim to arrive at a conclusion that is fair to the individual as well as the pool of funds needed to cover the risks.

It’s crucial for an underwriter to assess your situation correctly and give you a good deal on your premiums while also not causing any monetary loss to the insurance company. After all, if the premiums are too high, the customer could easily get insurance from a competitor offering a better deal.

 

What Can I Expect from the Assessment Process?

The whole point of your life insurance assessment is to determine how long you’re likely to live according to current medical history and at what point in time a claim is likely to be made. The insurance company wants to ensure they can get enough back from you in premiums before paying out a claim on your policy.

Here’s a quick overview of how each area is likely to be assessed:

• Age: One of the major factors contributing to your premium is your age. Younger people are valued as lower risk, therefore, their premium will be lower than older people.
• Health:If you’re currently in good health, you will be seen as a lower risk. If you have an unhealthy lifestyle or experience regular illness, it’s to be expected that you will receive a higher premium.
• Family History: If you have a family history of serious diseases or illnesses, it’s possible that you will be placed in a higher risk category when being assessed.
• – Work and Recreation: If you work in a hazardous career where there is a risk to your health and wellbeing, your occupation will have an impact on your premium. This is also the case if you regularly take part in recreational activities where there is a possible risk to your life, such as extreme sports.

 

Medical Assessments

When applying for life insurance, depending on the amount of cover you are requesting, medical examinations are often required to provide an accurate assessment and gain a precise depiction of your health status.

According to finder.com.au, an underwriter may request a medical report from your doctor or conduct a medical examination if you have been inflicted with a medical condition such as:

• Chest pains
• Lung disorders
• Chronic indigestion
• Hepatitis
• Mental illness
• Epilepsy
• Kidney, liver or bladder disorders
• High blood pressure and heart troubles
• Diabetes
• Bronchitis
• Cancer or malignant tumours

It is possible that a previously unknown medical problem could be identified after your medical assessment. If this occurs, the insurance company will notify you if any unusual test results occur along with information about how it will affect your life insurance application.

According to Asteron Life, depending on your age or life circumstances, you may be able to avoid medical tests altogether. If you’re under the age of 45, have no current health problems and are hoping to apply for up to $2.5 million of life insurance cover, for example, you are unlikely to need a medical assessment.

 

Why are Life Insurance Assessments so Involved?

The life insurance sector is heavily regulated in Australia. As explained by TAL, after your cover has been accepted and the insurance policy has been issued, an insurer is unable to cancel the policy or increase the price in relation to the policyholder’s health deteriorating.

The insurer can only fully assess this risk once, which is why the assessment process is so involved at the beginning. So with this in mind, it’s always best (and more affordable) to take on life insurance while you’re young and healthy to ensure you receive the best premiums and coverage possible.

 

What are the Outcomes?

Once your assessment is complete, you will be informed of the outcome in writing. If your application has been accepted, you’ll also receive a policy schedule from the insurer outlining the cover included and the dollar amount for the first premium due.

The outcome will vary depending on the results of your assessment. The possible outcomes from your assessment are as follows:

 

Tips for a Successful Life Insurance Application from our Premium Partners

Keep in mind that the application process and the information required can vary slightly between insurance providers. To help you on your journey towards protecting your loved ones with life insurance, our premium partners at Cover Australia have shared their ultimate life insurance application tips.

These tips come direct from our insurance providers and will be invaluable for you when seeking out a policy that suits your needs at a price you’ll be pleased with.

 

Life Insurance Application and Assessment from Cover Australia

At Cover Australia, not only can you compare insurance policies with us, but you can also receive trusted advice from qualified advisers who are more than happy to guide you through the life insurance application process.

Cover Australia’s platinum partners are industry leaders when it comes to providing comprehensive cover and fair assessments at a price our customers love. If you’d like to get a quote for life insurance with us at Cover Australia, visit our website and speak with an adviser to initiate the application and assessment process right away.

Are you reassessing your finances now that life is starting to slow down? In your 50s and 60s (and beyond), life insurance may seem like an unnecessary extra expense – especially with premiums getting higher as you get older.

But the fact of the matter is, no matter how old you are, life is always going to be unpredictable. Whether you’re 20 or 60, there’s no way of knowing what’s going to happen and the best you can ever do is be properly prepared for the unexpected.

If you have a family that you don’t want to burden with debt, a partner who depends on you, or a legacy that you want to leave behind, it’s important to take steps to secure their future and their livelihood. And life insurance is designed to do exactly that.

There are life insurance options available for every stage of your life, including as you move towards retirement. If you’re between 50 and 75, you’re eligible for senior’s life insurance – a tailored insurance product for those in their older years, who have very different needs and motivations to the younger generation of Australians.

Still not convinced? Read on below to weigh up all the benefits!

 

The Benefits at a Glance

Financial protection is more important than ever as you get older. Not just for the family and loved ones that you’ll one day leave behind, but also for the assets and investments that you’ve worked so hard your whole life to accumulate.

Here’s why baby boomers should be taking out (and keeping) their life cover:

 

Securing the Best Value Cover

Are you concerned about the cost of senior’s life insurance? While you can’t avoid premiums getting higher as you get older, there are still plenty of ways that you can cut the cost of your policy and make it more affordable on your budget.

 

What if my Application is Refused?

Unfortunately, as you get older you become a higher risk for insurance providers, and there is a chance that your application may be refused. This can be because of a number of reasons, such as your health or any existing medical conditions, a dangerous occupation, and whether or not you smoke.

If this happens, it’s important not to be discouraged because there are still options available to you. You can apply with a different provider, or request a reassessment of your application where you may be required to provide additional information.

Going through an independent insurance adviser is also a great way to make sure you’re aware of all your options and are guided through the application process with the best chance of a favourable outcome.

 

Financial Security for Every Stage of Your Life

Life insurance is not just for the young. No matter what stage of your life you’re in, being properly protected and securing your family’s future is an invaluable asset to have.

If you’re over 50, life cover is more important than ever. Life may be slowing down, but your financial obligations will still be there – take the necessary steps to protect your family and investments today.

When it comes to living a long life, Australians will be glad to know that they have a higher chance at this than many other people around the world. Australians are among the longest living people in the world, with an average life expectancy of 82.15 years as of 2015 (the 13th highest in the world according to the CIA World Factbook).

With that said, this doesn’t mean you should let yourself go and not take care of yourself. Life expectancies, after all, are just that – estimates and expectations.

If you want to live a long life and have a shot at meeting the estimated Australian life expectancy, then you have to make sure you live healthy and constantly improve your lifestyle.

There are several ways to do this, but here are five small, simple ways to make a positive impact in your life:

 

1. Eat more fruits and vegetables

By now, it’s practically common knowledge that eating plenty of fruits and vegetables is good for you. But many still fail to do this consistently (or do enough of it) that it’s always worth a reminder. Several studies over the years have shown that eating more fruits and vegetables is good for you. So there is hardly any doubt about it now: if you want to live longer, add more fruits and vegetables to your diet.

But you don’t have to become a vegetarian to enjoy its benefits, either. You simply have to eat more of it and much more regularly. In fact, the Australian Department of Healthrecommends at least 2 servings of fruit and 5 servings of vegetables per day for adults – an amount that’s not too difficult to achieve.

 

2. Consume less meat (especially red meat)

One common trait among people from countries with the highest life expectancies is that they don’t usually consume a lot of meat. For many people,