Also known as death cover, life cover, or just Life Insurance, it pays an agreed lump sum of money if you die or are diagnosed with a terminal illness. Most policies can be renewed up to age 99. On most policies there is an exclusion applied in the first 13 months of the life of the policy if the death is due to suicide.
If you die, your family can use the lump sum payment from Life Insurance to:
Do not confuse Life Insurance with accidental death insurance. Life Insurance provides a payment regardless of the method of death. Accidental death cover offers very limited protection because of its significantly lower premiums.
Life Insurance premiums are generally tax deductable if inside super and not tax deductable if structured outside super, however this also means that the pay out from a Life Insurance policy is generally also tax free (outside super).