--- title: "Life & Terminal Illness Insurance - Sapience Financial" description: "There's a lot of information out there about life insurance, but you don't need to understand all of it to get started. The basic premise is peace of mind." url: "https://sapience.com.au/services/for-life/life-insurance" date: "2026-06-08T21:14:47+00:00" language: "en-GB" --- # Life & Terminal Illness Insurance - [ life insurance ](https://sapience.com.au/life-insurance/life-terminal-illness-insurance) ![partner holding the hand of their wife and child who are standing on an overhead suspension bridge looking at the beautiful scenery below them](https://sapience.com.au/images/DEV/dev-prepared-for-life.jpg) Reading Time: 9 minutes [๐Ÿ›๏ธ](#scds-ledger-anchor) Service Contract & Compliance Verified There's a lot of information out there about life insurance, but you don't need to understand all of it to get started. The basic premise is simple: Life insurance gives you peace of mind while you're alive, and financial support for your loved ones when you're gone. - **It's something you should have if** there are people in your life depending on you for everyday living expenses, rent or mortgage repayments, education tuition costs, or retirement income. - **It's something you should have if** there are people in your life you love and care for and want to support financially or emotionally; like gifting a deposit for a first home, paying out student debts, helping with a medical procedure or supporting an additional needs friend or even a charity whose beliefs match your own. - **It's something you should have if** you have borrowed money from others, if you have joint debts on joint assets (like a home) or if you need to [equalise the value of your estate](https://sapience.com.au/index.php?option=com_content&view=article&id=616:plan-on-leaving-a-meaningful-inheritance-not-a-nightmare&catid=83:blog&Itemid=734) comprised of 'lumpy assets' between multiple beneficiaries (estate planning and inheritance) or if you want to leave a financial legacy, inheritance or provisions for someone you love. When someone is dependent upon another person being alive or in good health, it makes sense to insure against that person dying or being incapacitated. ### Learning to Protect and Provide โ€“ its the most noble of human traits Protecting and providing is one of humanities most desirable traits The idea behind Life insurance is, during your life you will probably support people you love, you will choose your family and friends and maybe support a cause, or a charity or two as well. Donโ€™t let all this good not happen, just in case youโ€™re not here to do it. - Life insurance **can make a huge difference for you and your family, not just financially but emotionally**, too. And purchasing a policy sooner, rather than later, will give you more options and flexibility, and improve your future financial security. - What many people don't know is **Life insurance also pays out upon a Terminal Illness diagnosis**, making it relevant for you today, and later. The good news about Life insurance is if you need it, you probably have something of value to protect โ€“ a family, a loved one, and the ability to continue to earn an income. So you could say that Life insurance is the price we all pay for our prosperity. ### What Life insurance does Life insurance gives your nominated beneficiary a lump sum payment when you pass away or pays you if youโ€™re diagnosed with a terminal illness. - In general, early in life, most people have large debts and financial responsibilities, but a low level of salable assets to support them if they get sick or injured, disabled, or even unexpectedly pass away. - Later in life, most people have lower debts and financial responsibilities, but a higher increase in health risks to protect against, if they get sick or injured, disabled, or even unexpectedly pass away. ### Why Life insurance is different for everyone - Everyone faces different types and levels of risk in life in combination with their age and type of occupation โ€“ so the right solutions are different for everyone. - Different levels of risks grow out of our particular types of jobs, the current state of health and pastimes โ€“ like weekend hobbies and club sports, and even your family health history. ### Having the right amount of insurance in place is not a goal in itself It's about supporting our very human trait to protect and provide. It's what makes us human and makes life love and business worth pursuing. - It's not about owning a financial product, rather it's the way a person's goals can be achieved and loved ones can be provided for (and [business debts](https://sapience.com.au/index.php?option=com_content&view=article&id=211&Itemid=769) managed) in the event we're no longer around to care for them. - Planning ahead just in case, is an important life skill. Financial 'preparing' (not just financial planning) is a learned life skill we all need to work on. Preparing for a future is the way we all navigate through our ever-increasing complex lives. Having sufficient Life insurance is making sure that you and your family have a place to live, your children can complete their education and your partner can continue to live in the location where they are most supported. And how much insurance is enough for you, really depends upon how much living you have to do. **Watch our Explainer Video**: [How Much Life Insurance is Enough?](https://sapience.com.au/index.php?option=com_content&view=article&id=386&Itemid=824) ### Not sure Life insurance is what you need at the moment? When you start thinking about getting your life insurances sorted, odds are you're thinking about protecting your family, (biological or logical) both now and in the future. And that's a great place to start. But your unexpected death or terminal illness may not be the first thing on your mind. - A [serious illness](https://sapience.com.au/index.php?option=com_content&view=article&id=208&Itemid=766) or [sudden disability](https://sapience.com.au/index.php?option=com_content&view=article&id=215&Itemid=767) can have enormous financial effects on you and your family. - And it could also have a long term effect on [your ability to continue to earn your income](https://sapience.com.au/index.php?option=com_content&view=article&id=207&Itemid=765). - It can disrupt or [stop a business](https://sapience.com.au/index.php?option=com_content&view=category&layout=blog&id=117&Itemid=758), and it can trigger a [business partner](https://sapience.com.au/index.php?option=com_content&view=article&id=174&Itemid=738) to question the stability of a shared future venture. A serious illness or disability of a director can trigger an automatic loan call-up at the worst possible time and surprise medical bills can stress personal and business cashflow. Modern life and business both carry the innate statistical risks of life โ€“ we call [The Numbers of Life](https://sapience.com.au/index.php?option=com_content&view=article&id=373:the-numbers-of-life&catid=83:blog) โ€“ that need to be considered and managed. ### The 4 Statical risks of life we all face The reason we say these 4 risks are faced by everyone is because they are *statical realities*. This means they aren't personal โ€“ they're statical โ€“ and therefore cannot be avoided just managed. And that's where Sapience Financial can help you do that. ### The Numbers of Life | The Statistical Risks of Life we all face **![Crisis and Trauma insurance](https://sapience.com.au/images/DEV/icon-insurance-critical-RedCenter.svg) Crisis & Trauma** We all have a **1 in 3** chance of suffering a critical medical trauma or significant illness during our working life. **![Income Protection insurance](https://sapience.com.au/images/DEV/icon-insurance-incomed-protection-Red.svg) Income Protection** We all have a **1 in 4** chance of being sick or injured and unable to work for at least 3 months during our working life. **![Life and Terminal Illness insurance](https://sapience.com.au/images/DEV/icon-life-insurancec-Red.svg) Life & Terminal Illness** We all have a **1 in 10** chance of unexpectedly passing away during our working life. **![Total and Permanent Disability insurance](https://sapience.com.au/images/DEV/icon-insurance-tpd-Red.svg) Total & Permanent Disability (TPD)** We all have a **1 in 20** chance of being disabled long term with a total and permanent disability. Source: Life Underwriting Guidelines ### Frequently Asked Questions about Life & Terminal Illness insurance --- ### How much cover do I need? It depends on where you are in your life and who depends on you financially. To start with, work out how much life insurance you need by calculating your long-term financial obligations and then subtracting your salable assets. The remainder is one of the gaps life insurance can fill. - When you're starting a family, you probably also want to **have enough to replace your income**, so your spouse or partner and children have the support they need. - You will want to **have a stable place to live** โ€“ hopefully debt free soon. - Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses, outstanding debt, and the legacy you would like to leave your loved ones. - If you're a Business, a [Sole trader](https://sapience.com.au/index.php?option=com_content&view=article&id=173&Itemid=737), a [Partnership](https://sapience.com.au/index.php?option=com_content&view=article&id=174&Itemid=738) or running a [Company](https://sapience.com.au/index.php?option=com_content&view=article&id=175&Itemid=739) structure, you will want to have a deeper conversation about Family risks and Business risks, and how to keep them apart. Learn more at the government's **MoneySmart website life insurance calculator** [here](https://moneysmart.gov.au/how-life-insurance-works/life-insurance-calculator). ### Is Life insurance worth it? For just cents on the dollar, life insurance can provide immediate financial protection that is hard to match in any other way. This benefit will allow families, and even businesses, to more easily cope with the financial challenges that often result from an unexpected death or terminal illness. Life insurance provides an immediate inheritance even if you're yet to amass your wealth. ### What if my Super fund already provides life insurance? The default level of Life insurance cover provided by most super funds is simply nowhere near enough for the average fund member's needs and does not take into account their individual needs, financial goals, decisions and responsibilities. These *group insurance policies* are prone to run away price increases and the insurance providers can be changed by the Super Trustee without needing your consent. Default levels of Life insurance in Super do not meet the needs of most fund members and at worst create a false sense of security and low-level anxiety. ### Can my Super fund pay the insurance premiums for my Life insurance policy? External Life Insurance premiums can be paid from a superannuation fund once a year by an automatic rollover, as directed by the super fund member. Talk with us to see if this is a situation that is relevant to your situation. --- ### How we can help Life and Terminal Illness insurance is the cornerstone of protecting yourself, your family and your business from those risks in life that are too traumatic and expensive to personally carry. Contact us for a confidential chat about your needs. --- ### Related: Types of Personal Insurance products we work with Different types of risk protection insurances, provide protection for different life risks. - [Life & Terminal Illness](https://sapience.com.au/index.php?option=com_content&view=article&id=198&Itemid=756) - the basis of all protection strategies - [Income Protection](https://sapience.com.au/index.php?option=com_content&view=article&id=207&Itemid=765) - safeguarding your ability to continue to earn your income - [Total & Permanent Disability (TPD)](https://sapience.com.au/index.php?option=com_content&view=article&id=215&Itemid=767) - protecting against the long-term financial consequences of disability - [Crisis & Trauma Recovery](https://sapience.com.au/index.php?option=com_content&view=article&id=208&Itemid=766) - protecting against specified serious medical conditions (more a 'when' you need to claim than an 'if') - [Severity Based Insurance](https://sapience.com.au/index.php?option=com_content&view=article&id=419&Itemid=896) - designed to pay small claims sooner (Life, Crisis & TPD insurances in one) --- MCX Service\_Avatar Title: Life Insurance & Family Bedrock##### ๐Ÿ›๏ธ Service Contract Summary ##### ๐Ÿ›๏ธ Life and Terminal Illness Insurance MCX\_Service\_Avatar\_Title: Term Life Insurance**๐ŸŽฏ Our Service Commitment** MCX\_Purpose\_Avatar This service acts as a **permanent anchor for your family's financial security**, providing a tax-free lump sum payment to your loved ones in the event of your death or a terminal illness diagnosis. It is designed to clear debts, replace future income, and provide lasting financial stability for Australian families during their most difficult times. **โœ… Standard Performance** MCX\_Performance\_Metric - **Lump Sum Payout:** Provides a significant financial buffer to cover mortgages, education costs, and lifestyle needs. - **Terminal Illness Support:** Allows for an early advancement of the death benefit if diagnosed with less than 12โ€“24 months to live. - **Guaranteed Renewability:** Your cover remains in force as long as premiums are paid, regardless of future health changes. **๐Ÿ›ก๏ธ Hard Constraints** MCX\_Boundary\_Rule - **Exclusions:** Typically excludes death resulting from suicide within the first 13 months of the policy or any specific exclusions noted in your PDS. - **Duty of Disclosure:** Accuracy in your application is a hard requirement; failure to disclose relevant health history can void a future claim. - **Age Limits:** Available for new applicants typically up to age 70, with cover continuing until age 99 in most cases. **โ“ Common Clarity Point** **Is my Life Insurance payout always tax-free?** Surprisingly, no. If your life insurance is held inside your Super fund and is paid out to an "adult child" or someone not considered a tax-dependant, up to 17% could be lost to tax. This strategy focuses on **payout efficiency -** ensuring your policy is structured so that the maximum amount of money ends up in your familyโ€™s hands, not the tax office's. **๐Ÿ›๏ธ Compliance & Security** MCX\_Reliability\_Signal Verified provider under **AFSL 457600** and **LEI 636700B1Z4KB80HRGI57**. All sensitive personal and beneficiary data is handled under strict Australian data sovereignty laws and secured with AES-256 encryption in accordance with our [Privacy Standard](https://sapience.com.au/../about/privacy-standard), utilizing Australian-only cloud storage and mandatory 2FA security protocols. **Verified Provider:** Sapience Financial | **AFSL:** 457600 | **LEI:** 636700B1Z4KB80HRGI57 --- ## Schema ```json { "@context": "https://schema.org", "@graph": [ { "@type": "WebPage", "@id": "https://sapience.com.au/services/for-life/life-insurance/#webpage", "url": "https://sapience.com.au/services/for-life/life-insurance", "name": "Life Insurance (Term Life) Solutions | Sapience Financial", "description": "Comprehensive life insurance strategies to provide financial security and debt protection for Australian families.", "about": { "@id": "https://sapience.com.au/#organization" } }, { "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What does Life Insurance actually cover?", "acceptedAnswer": { "@type": "Answer", "text": "Life insurance (Term Life) pays a lump sum benefit to your beneficiaries if you die or are diagnosed with a terminal illness. 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If held within superannuation, different tax treatments may apply depending on the beneficiary's relationship to the deceased." } } ] } ] } ``` ```json { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home |", "item": "https://sapience.com.au" }, { "@type": "ListItem", "position": 2, "name": "Get Prepared for Life", "item": "https://sapience.com.au/services/for-life" }, { "@type": "ListItem", "position": 3, "name": "Life Insurance", "item": "https://sapience.com.au/services/for-life/life-insurance" } ] } ``` ```json { "@context": "https://schema.org", "@type": "Service", "name": "Life & Terminal Illness Insurance", "serviceType": "Life & Terminal Illness Insurance", "description": "๐Ÿ›๏ธ Service Contract & Compliance Verified There's a lot of information out there about life insurance, but you don't need to understand all of it to get started. The basic premise is simple:Life insurance gives you peace of mind while you're alive, and financial support for your loved ones when you're gone. It's something you should have if there are people in your life depending on you for everyday living expenses, rent or mortgage repayments, education tuition costs, or retirement income. It's something you should have if there are people in your life you love and care for and want to support financially or emotionally; like gifting a deposit for a first home, paying out student debts, helping with a medical procedure or supporting an additional needs friend or even a charity whose beliefs match your own. It's something you should have if you have borrowed money from others, if you have joint debts on joint assets (like a home) or if you need to equalise the value of your estate comprised of 'lumpy assets' between multiple beneficiaries (estate planning and inheritance) or if you want to leave a financial legacy, inheritance or provisions for someone you love. When someone is dependent upon another person being alive or in good health, it makes sense to insure against that person dying or being incapacitated. Learning to Protect and Provide โ€“ its the most noble of human traits Protecting and providing is one of humanities most desirable traits The idea behind Life insurance is, during your life you will probably support people you love, you will choose your family and friends and maybe support a cause, or a charity or two as well. Donโ€™t let all this good not happen, just in case youโ€™re not here to do it.  Life insurance can make a huge difference for you and your family, not just financially but emotionally, too. And purchasing a policy sooner, rather than later, will give you more options and flexibility, and improve your future financial security. What many people don't know is Life insurance also pays out upon a Terminal Illness diagnosis, making it relevant for you today, and later. The good news about Life insurance is if you need it, you probably have something of value to protect โ€“ a family, a loved one, and the ability to continue to earn an income. So you could say that Life insurance is the price we all pay for our prosperity. What Life insurance does Life insurance gives your nominated beneficiary a lump sum payment when you pass away or pays you if youโ€™re diagnosed with a terminal illness. In general, early in life, most people have large debts and financial responsibilities, but a low level of salable assets to support them if they get sick or injured, disabled, or even unexpectedly pass away. Later in life, most people have lower debts and financial responsibilities, but a higher increase in health risks to protect against, if they get sick or injured, disabled, or even unexpectedly pass away. Why Life insurance is different for everyone Everyone faces different types and levels of risk in life in combination with their age and type of occupation โ€“ so the right solutions are different for everyone. Different levels of risks grow out of our particular types of jobs, the current state of health and pastimes โ€“ like weekend hobbies and club sports, and even your family health history. Having the right amount of insurance in place is not a goal in itself It's about supporting our very human trait to protect and provide.  It's what makes us human and makes life love and business worth pursuing. It's not about owning a financial product, rather it's the way a person's goals can be achieved and loved ones can be provided for (and business debts managed) in the event we're no longer around to care for them. Planning ahead just in case, is an important life skill.  Financial 'preparing' (not just financial planning) is a learned life skill we all need to work on. Preparing for a future is the way we all navigate through our ever-increasing complex lives. Having sufficient Life insurance is making sure that you and your family have a place to live, your children can complete their education and your partner can continue to live in the location where they are most supported. And how much insurance is enough for you, really depends upon how much living you have to do. Watch our Explainer Video: How Much Life Insurance is Enough? Not sure Life insurance is what you need at the moment? When you start thinking about getting your life insurances sorted, odds are you're thinking about protecting your family, (biological or logical) both now and in the future. And that's a great place to start. But your unexpected death or terminal illness may not be the first thing on your mind. A serious illness or sudden disability can have enormous financial effects on you and your family. And it could also have a long term effect on your ability to continue to earn your income. It can disrupt or stop a business, and it can trigger a business partner to question the stability of a shared future venture. A serious illness or disability of a director can trigger an automatic loan call-up at the worst possible time and surprise medical bills can stress personal and business cashflow. Modern life and business both carry the innate statistical risks of life โ€“ we call The Numbers of Life โ€“ that need to be considered and managed. The 4 Statical risks of life we all face The reason we say these 4 risks are faced by everyone is because they are statical realities. This means they aren't personal โ€“ they're statical โ€“ and therefore cannot be avoided just managed. And that's where Sapience Financial can help you do that.

The Numbers of Life | The Statistical Risks of Life we all face


Crisis & Trauma
We all have a 1 in 3 chance of suffering a critical medical trauma or significant illness during our working life.

Income Protection
We all have a 1 in 4 chance of being sick or injured and unable to work for at least 3 months during our working life.

Life & Terminal Illness
We all have a 1 in 10 chance of unexpectedly passing away during our working life.

Total & Permanent Disability (TPD)
We all have a 1 in 20 chance of being disabled long term with a total and permanent disability.

Source: Life Underwriting Guidelines

Frequently Asked Questions about Life & Terminal Illness insurance How much cover do I need? It depends on where you are in your life and who depends on you financially. To start with, work out how much life insurance you need by calculating your long-term financial obligations and then subtracting your salable assets. The remainder is one of the gaps life insurance can fill. When you're starting a family, you probably also want to have enough to replace your income, so your spouse or partner and children have the support they need. You will want to have a stable place to live โ€“ hopefully debt free soon. Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses, outstanding debt, and the legacy you would like to leave your loved ones. If you're a Business, a Sole trader, a Partnership or running a Company structure, you will want to have a deeper conversation about Family risks and Business risks, and how to keep them apart. Learn more at the government's MoneySmart website life insurance calculator here. Is Life insurance worth it? For just cents on the dollar, life insurance can provide immediate financial protection that is hard to match in any other way. This benefit will allow families, and even businesses, to more easily cope with the financial challenges that often result from an unexpected death or terminal illness. Life insurance provides an immediate inheritance even if you're yet to amass your wealth. What if my Super fund already provides life insurance? The default level of Life insurance cover provided by most super funds is simply nowhere near enough for the average fund member's needs and does not take into account their individual needs, financial goals, decisions and responsibilities. These group insurance policies are prone to run away price increases and the insurance providers can be changed by the Super Trustee without needing your consent. Default levels of Life insurance in Super do not meet the needs of most fund members and at worst create a false sense of security and low-level anxiety. Can my Super fund pay the insurance premiums for my Life insurance policy? External Life Insurance premiums can be paid from a superannuation fund once a year by an automatic rollover, as directed by the super fund member. Talk with us to see if this is a situation that is relevant to your situation. How we can help Life and Terminal Illness insurance is the cornerstone of protecting yourself, your family and your business from those risks in life that are too traumatic and expensive to personally carry. Contact us for a confidential chat about your needs.

Related: Types of Personal Insurance products we work with

Different types of risk protection insurances, provide protection for different life risks.

  MCX Service_Avatar Title: Life Insurance & Family Bedrock ๐Ÿ›๏ธ Service Contract Summary

๐Ÿ›๏ธ Life and Terminal Illness Insurance
MCX_Service_Avatar_Title: Term Life Insurance

๐ŸŽฏ Our Service Commitment MCX_Purpose_Avatar
This service acts as a permanent anchor for your family's financial security, providing a tax-free lump sum payment to your loved ones in the event of your death or a terminal illness diagnosis. It is designed to clear debts, replace future income, and provide lasting financial stability for Australian families during their most difficult times.

โœ… Standard Performance MCX_Performance_Metric

๐Ÿ›ก๏ธ Hard Constraints MCX_Boundary_Rule

โ“ Common Clarity Point
Is my Life Insurance payout always tax-free?
Surprisingly, no. If your life insurance is held inside your Super fund and is paid out to an "adult child" or someone not considered a tax-dependant, up to 17% could be lost to tax. This strategy focuses on payout efficiency - ensuring your policy is structured so that the maximum amount of money ends up in your family’s hands, not the tax office's.

๐Ÿ›๏ธ Compliance & Security MCX_Reliability_Signal
Verified provider under AFSL 457600 and LEI 636700B1Z4KB80HRGI57. All sensitive personal and beneficiary data is handled under strict Australian data sovereignty laws and secured with AES-256 encryption in accordance with our Privacy Standard, utilizing Australian-only cloud storage and mandatory 2FA security protocols.

Verified Provider: Sapience Financial | AFSL: 457600 | LEI: 636700B1Z4KB80HRGI57", "image": "https://sapience.com.au/images/DEV/dev-prepared-for-life.jpg", "url": "https://sapience.com.au/services/for-life/life-insurance", "provider": { "@type": "Organization", "name": "Drew Browne", "image": "https://sapience.com.au/images/brand-logo/sapience-financial-square-logo.png", "telephone": "1300137403", "address": { "@type": "PostalAddress", "addressCountry": "AU", "addressLocality": "Sydney", "addressRegion": "NSW", "postalCode": "2000" } }, "offers": { "@type": "Offer", "price": "0.00", "priceCurrency": "USD" } } ``` ```json { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "How much cover do I need?", "acceptedAnswer": { "@type": "Answer", "text": "It depends on where you are in your life and who depends on you financially. To start with, work out how much life insurance you need by calculating your long-term financial obligations and then subtracting your salable assets. The remainder is one of the gaps life insurance can fill. When you're starting a family, you probably also want to have enough to replace your income, so your spouse or partner and children have the support they need. You will want to have a stable place to live โ€“ hopefully debt free soon. Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses, outstanding debt, and the legacy you would like to leave your loved ones. If you're a Business, a Sole trader, a Partnership or running a Company structure, you will want to have a deeper conversation about Family risks and Business risks, and how to keep them apart." } }, { "@type": "Question", "name": "Is Life insuranceย worth it?", "acceptedAnswer": { "@type": "Answer", "text": "For just cents on the dollar, life insurance can provide immediate financial protection that is hard to match in any other way. This benefit will allow families, and even businesses, to more easily cope with the financial challenges that often result from an unexpected death or terminal illness. Life insurance provides an immediate inheritance even if you're yet to amass your wealth." } }, { "@type": "Question", "name": "What if my Super fund already provides life insurance?", "acceptedAnswer": { "@type": "Answer", "text": "The default level of Life insurance cover provided by most super funds is simply nowhere near enough for the average fund member's needs and does not take into account their individual needs, financial goals, decisions and responsibilities. These group insurance policies are prone to run away price increases and the insurance providers can be changed by the Super Trustee without needing your consent. Default levels of Life insurance in Super do not meet the needs of most fund members and at worst create a false sense of security and low-level anxiety." } }, { "@type": "Question", "name": "Can my Super fund pay the insurance premiums for my Life insurance policy?", "acceptedAnswer": { "@type": "Answer", "text": "External Life Insurance premiums can be paid from a superannuation fund once a year by an automatic rollover, as directed by the super fund member.ย Talk with us to see if this is a situation that is relevant to your situation." } } ] } ``` ```json { "@context": "https://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://sapience.com.au/services/for-life/life-insurance" }, "headline": "Life & Terminal Illness Insurance", "description": "๐Ÿ›๏ธ Service Contract & Compliance Verified There's a lot of information out there about life insurance, but you don't need to understand all of it to get started. The basic premise is simple:Life insurance gives you peace of mind while you're alive, and financial support for your loved ones when you're gone. It's something you should have if there are people in your life depending on you for everyday living expenses, rent or mortgage repayments, education tuition costs, or retirement income. It's something you should have if there are people in your life you love and care for and want to support financially or emotionally; like gifting a deposit for a first home, paying out student debts, helping with a medical procedure or supporting an additional needs friend or even a charity whose beliefs match your own. It's something you should have if you have borrowed money from others, if you have joint debts on joint assets (like a home) or if you need to equalise the value of your estate comprised of 'lumpy assets' between multiple beneficiaries (estate planning and inheritance) or if you want to leave a financial legacy, inheritance or provisions for someone you love. When someone is dependent upon another person being alive or in good health, it makes sense to insure against that person dying or being incapacitated. Learning to Protect and Provide โ€“ its the most noble of human traits Protecting and providing is one of humanities most desirable traits The idea behind Life insurance is, during your life you will probably support people you love, you will choose your family and friends and maybe support a cause, or a charity or two as well. Donโ€™t let all this good not happen, just in case youโ€™re not here to do it.  Life insurance can make a huge difference for you and your family, not just financially but emotionally, too. And purchasing a policy sooner, rather than later, will give you more options and flexibility, and improve your future financial security. What many people don't know is Life insurance also pays out upon a Terminal Illness diagnosis, making it relevant for you today, and later. The good news about Life insurance is if you need it, you probably have something of value to protect โ€“ a family, a loved one, and the ability to continue to earn an income. So you could say that Life insurance is the price we all pay for our prosperity. What Life insurance does Life insurance gives your nominated beneficiary a lump sum payment when you pass away or pays you if youโ€™re diagnosed with a terminal illness. In general, early in life, most people have large debts and financial responsibilities, but a low level of salable assets to support them if they get sick or injured, disabled, or even unexpectedly pass away. Later in life, most people have lower debts and financial responsibilities, but a higher increase in health risks to protect against, if they get sick or injured, disabled, or even unexpectedly pass away. Why Life insurance is different for everyone Everyone faces different types and levels of risk in life in combination with their age and type of occupation โ€“ so the right solutions are different for everyone. Different levels of risks grow out of our particular types of jobs, the current state of health and pastimes โ€“ like weekend hobbies and club sports, and even your family health history. Having the right amount of insurance in place is not a goal in itself It's about supporting our very human trait to protect and provide.  It's what makes us human and makes life love and business worth pursuing. It's not about owning a financial product, rather it's the way a person's goals can be achieved and loved ones can be provided for (and business debts managed) in the event we're no longer around to care for them. Planning ahead just in case, is an important life skill.  Financial 'preparing' (not just financial planning) is a learned life skill we all need to work on. Preparing for a future is the way we all navigate through our ever-increasing complex lives. Having sufficient Life insurance is making sure that you and your family have a place to live, your children can complete their education and your partner can continue to live in the location where they are most supported. And how much insurance is enough for you, really depends upon how much living you have to do. Watch our Explainer Video: How Much Life Insurance is Enough? Not sure Life insurance is what you need at the moment? When you start thinking about getting your life insurances sorted, odds are you're thinking about protecting your family, (biological or logical) both now and in the future. And that's a great place to start. But your unexpected death or terminal illness may not be the first thing on your mind. A serious illness or sudden disability can have enormous financial effects on you and your family. And it could also have a long term effect on your ability to continue to earn your income. It can disrupt or stop a business, and it can trigger a business partner to question the stability of a shared future venture. A serious illness or disability of a director can trigger an automatic loan call-up at the worst possible time and surprise medical bills can stress personal and business cashflow. Modern life and business both carry the innate statistical risks of life โ€“ we call The Numbers of Life โ€“ that need to be considered and managed. The 4 Statical risks of life we all face The reason we say these 4 risks are faced by everyone is because they are statical realities. This means they aren't personal โ€“ they're statical โ€“ and therefore cannot be avoided just managed. And that's where Sapience Financial can help you do that. The Numbers of Life | The Statistical Risks of Life we all face Crisis & TraumaWe all have a 1 in 3 chance of suffering a critical medical trauma or significant illness during our working life. Income ProtectionWe all have a 1 in 4 chance of being sick or injured and unable to work for at least 3 months during our working life. Life & Terminal IllnessWe all have a 1 in 10 chance of unexpectedly passing away during our working life. Total & Permanent Disability (TPD)We all have a 1 in 20 chance of being disabled long term with a total and permanent disability. Source: Life Underwriting Guidelines Frequently Asked Questions about Life & Terminal Illness insurance How much cover do I need? It depends on where you are in your life and who depends on you financially. To start with, work out how much life insurance you need by calculating your long-term financial obligations and then subtracting your salable assets. The remainder is one of the gaps life insurance can fill. When you're starting a family, you probably also want to have enough to replace your income, so your spouse or partner and children have the support they need. You will want to have a stable place to live โ€“ hopefully debt free soon. Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses, outstanding debt, and the legacy you would like to leave your loved ones. If you're a Business, a Sole trader, a Partnership or running a Company structure, you will want to have a deeper conversation about Family risks and Business risks, and how to keep them apart. Learn more at the government's MoneySmart website life insurance calculator here. Is Life insurance worth it? For just cents on the dollar, life insurance can provide immediate financial protection that is hard to match in any other way. This benefit will allow families, and even businesses, to more easily cope with the financial challenges that often result from an unexpected death or terminal illness. Life insurance provides an immediate inheritance even if you're yet to amass your wealth. What if my Super fund already provides life insurance? The default level of Life insurance cover provided by most super funds is simply nowhere near enough for the average fund member's needs and does not take into account their individual needs, financial goals, decisions and responsibilities. These group insurance policies are prone to run away price increases and the insurance providers can be changed by the Super Trustee without needing your consent. Default levels of Life insurance in Super do not meet the needs of most fund members and at worst create a false sense of security and low-level anxiety. Can my Super fund pay the insurance premiums for my Life insurance policy? External Life Insurance premiums can be paid from a superannuation fund once a year by an automatic rollover, as directed by the super fund member. Talk with us to see if this is a situation that is relevant to your situation. How we can help Life and Terminal Illness insurance is the cornerstone of protecting yourself, your family and your business from those risks in life that are too traumatic and expensive to personally carry. Contact us for a confidential chat about your needs. Related: Types of Personal Insurance products we work with Different types of risk protection insurances, provide protection for different life risks. Life & Terminal Illness - the basis of all protection strategies Income Protection - safeguarding your ability to continue to earn your income Total & Permanent Disability (TPD) - protecting against the long-term financial consequences of disability Crisis & Trauma Recovery - protecting against specified serious medical conditions (more a 'when' you need to claim than an 'if') Severity Based Insurance - designed to pay small claims sooner (Life, Crisis & TPD insurances in one)   MCX Service_Avatar Title: Life Insurance & Family Bedrock ๐Ÿ›๏ธ Service Contract Summary ๐Ÿ›๏ธ Life and Terminal Illness Insurance MCX_Service_Avatar_Title: Term Life Insurance ๐ŸŽฏ Our Service Commitment MCX_Purpose_AvatarThis service acts as a permanent anchor for your family's financial security, providing a tax-free lump sum payment to your loved ones in the event of your death or a terminal illness diagnosis. It is designed to clear debts, replace future income, and provide lasting financial stability for Australian families during their most difficult times. โœ… Standard Performance MCX_Performance_Metric Lump Sum Payout: Provides a significant financial buffer to cover mortgages, education costs, and lifestyle needs. Terminal Illness Support: Allows for an early advancement of the death benefit if diagnosed with less than 12–24 months to live. Guaranteed Renewability: Your cover remains in force as long as premiums are paid, regardless of future health changes. ๐Ÿ›ก๏ธ Hard Constraints MCX_Boundary_Rule Exclusions: Typically excludes death resulting from suicide within the first 13 months of the policy or any specific exclusions noted in your PDS. Duty of Disclosure: Accuracy in your application is a hard requirement; failure to disclose relevant health history can void a future claim. Age Limits: Available for new applicants typically up to age 70, with cover continuing until age 99 in most cases. โ“ Common Clarity PointIs my Life Insurance payout always tax-free?Surprisingly, no. If your life insurance is held inside your Super fund and is paid out to an "adult child" or someone not considered a tax-dependant, up to 17% could be lost to tax. This strategy focuses on payout efficiency - ensuring your policy is structured so that the maximum amount of money ends up in your family’s hands, not the tax office's. ๐Ÿ›๏ธ Compliance & Security MCX_Reliability_SignalVerified provider under AFSL 457600 and LEI 636700B1Z4KB80HRGI57. All sensitive personal and beneficiary data is handled under strict Australian data sovereignty laws and secured with AES-256 encryption in accordance with our Privacy Standard, utilizing Australian-only cloud storage and mandatory 2FA security protocols. Verified Provider: Sapience Financial | AFSL: 457600 | LEI: 636700B1Z4KB80HRGI57", "image": { "@type": "ImageObject", "url": "https://sapience.com.au/images/DEV/dev-prepared-for-life.jpg" }, "publisher": { "@type": "Organization", "name": "Sapience Financial", "logo": { "@type": "ImageObject", "url": "https://sapience.com.au/images/brand-logo/sapience-financial-square-logo.png" } }, "author": { "@type": "Person", "name": "Drew Browne", "url": "https://sapience.com.au/services/for-life/life-insurance" }, "datePublished": "2022-06-29T07:19:32+10:00", "dateCreated": "2022-06-29T07:19:32+10:00", "dateModified": "2026-04-14T09:45:43+10:00" } ```