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Medibank Life Insurance review
A high maximum cover limit and policy add-ons make Medibank Life Insurance a strong choice if you’re looking for that bit extra from your insurer.
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$2,500,000
Maximum Cover
70
Maximum Entry Age
$2,500,000
Terminal Illness Benefit
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Details
| Product Name | Medibank Life Insurance |
|---|---|
| Maximum Cover | $2,500,000 |
| Terminal Illness Benefit | $2,500,000 |
| Funeral Benefit | $15,000 |
| Guaranteed Renewability | |
| Cooling-off (days) | 30 |
| Online Quote |
Medibank boasts a number of impressive features in its life insurance plans, one of which is a comparatively high maximum cover level of $2,500,000 for terminal illness. Many will appreciate the flexibility that's offered by Medibank Life Insurance – you build a policy that matches your needs and its maximum entry age of 70 is one of the highest around. Just keep in mind that Medibank's policies aren't fully underwritten.
2021 Finder Awards
Finalist: Best Life Insurance
Medibank Life Insurance
Medibank life insurance can cover you up to a maximum of $2,500,000 based on your income and age. Plus, if you're a Medibank health insurance member, you'll save 10% on premiums each year.
Get the latest deal from Medibank Life Insurance
Deal
10% off premiums for Medibank health members
Medibank health members save 10% every year. T&Cs apply
Compare life insurance options from Medibank
Medibank life insurance: Our verdict
- You can be covered for up to $2,500,000 – the second highest sum from 19 insurers compared on Finder.
- Looking for a little flexibility with your policy? Total and permanent disability (TPD) and trauma insurance are optional add-ons.
- Your policy isn't fully underwritten, which could be a sticking point for some.
Read a more detailed review on:
Life Insurance
Key points of Medibank Life Insurance
- Get covered for up to $2,500,000 if you die or are diagnosed with a terminal illness
- Tailor your policy with options such as trauma cover
- You could be approved over the phone
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Starter Life Insurance
Key points of Medibank Starter Life Insurance
- Get a lump sum payment of between $50,000 and $250,000 if you die or are diagnosed with a terminal illness.
- $15,000 in funeral benefits.
- This "automatic acceptance" policy may not be suitable if you have a pre-existing medical condition.
- Easy application – no medical or blood tests required.
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Income Protection Insurance
Key points of Medibank Income Protection Insurance
- Provides a replacement income, up to 75% of your pre-tax earnings, if you're unable to work due to illness or injury.
- Maximum monthly benefit of $7,500 (on Standard Cover).
- Receive a lump sum death benefit of 3 times the monthly insured amount.
- Added perks may include rehabilitation benefits, and total and permanent disability (TPD) cover.
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Funeral Insurance
Key points of Medibank Funeral Insurance
- Guaranteed acceptance if you meet the application requirements.
- A lump sum payment of up to $15,000 to help your loved ones pay for immediate expenses, such as your funeral, when you die.
- Benefit amount won't be less than the total premiums you pay.
- Other benefits can include terminal illness, accidental death and accidental serious injury.
Cover perks
All Medibank cover types come with:
- A 10% discount for Medibank health members.
- Worldwide cover that applies 24 hours a day, 7 days a week.
How much cover can I get with Medibank?
The amount of cover you can apply for varies depending on your age and income, as shown in the table below:
| Age at application | Life Cover | Permanently Unable to Work Cover | Trauma Cover |
|---|---|---|---|
| 16-45 | $2,500,000 | $1,250,000 | $500,000 (from age 18) |
| 46-55 | $1.5 million | $750,000 | $250,000 |
| 56-60 | $500,000 | $200,000 | $100,000 |
| 61-70 | $500,000 | N/A | N/A |
Am I eligible for Medibank life insurance products?
| Type of life insurance | Age criteria | Other features |
|---|---|---|
| Medibank Life Insurance | 16-70 | Further terms apply if you add Permanently Unable to Work Cover and/or Trauma Cover to your policy. |
| Medibank Income Protection Insurance | 18 to 59 years inclusive | You must be employed/self-employed for 20+ hours per week. |
| Medibank Funeral Insurance | 18 to 79 years (inclusive). | Simple application; no medical history required. |
Still not sure if Medibank is the right fit for you? Here are the main pros and cons summed up.
Pros
- Increase your life insurance sum without another health or medical questionnaire.*
- Add optional trauma insurance and/or permanently unable to work cover onto your policy.
- Cover is guaranteed to continue as long as premiums are paid.
Cons
- You can't get level premiums, a cover type where the payout remains the same during the term of your policy.
*Only for specific events, for example, marriage or having children. Information based on the Life Insurance policy and last checked in March 2021. Always consult the Product Disclosure Statement (PDS).
More about Medibank
Medibank Australia sets itself apart from other insurers by offering leading value in:
- Sustainability program and corporate responsibility. Allows Medibank to focus on the environment, and the social and economic issues which are impacting Australians the most. Medibank also uses its community fund to spread preventative health messages and enact long term changes in the positive health of all Australians, which is a 1% donation of the company's pre tax profits.
- Strong and relatable company values. It is always easier to work with someone who understands you, and thinks in the same way you do. Medibank has a strong values system, which sees it: treat their customers as they would like to be treated, commit to services and deliver what is promised, provide open, honest and transparent services, and celebrate each others' differences and engage as equals.
- Large company, small prices. Some businesses will inflate their prices as they grow in order to maintain a certain price point image. However, while Medibank has customers and offers services in health and insurance around Australia and New Zealand, it uses this reach and strength to maintain affordability and relevance for every customer.
Questions you've asked about Medibank, answered ✅
How do I make a claim for Medibank life insurance products?
There are 4 key points to keep in mind for the claims process, as follows:
- If you (or your legal representative) wish to make a claim under a Medibank life insurance policy, you must phone or write to the insurer to provide notification of your intent to claim.
- You will be sent a claim form that you must complete, sign and return, while the treating doctor or specialist may also have to complete a form.
- It's important that you lodge your claim as soon as possible after the claimable event.
- You will also need to provide proof that the insured event occurred. The proof required varies depending on the nature of your claim, but includes all relevant test, examination and laboratory results.
What is the Death Benefit amount under a Medibank Income Protection policy?
If you die while the Income Benefit is payable, your policy will offer a lump sum Death Benefit equal to 3 times your insured monthly benefit amount.
Does Medibank Income Protection Insurance pay a benefit if I am unable to work due to mental illness?
No. Claims arising due to mental illness are excluded from cover.
Will my Medibank Funeral Insurance premium payments ever exceed the benefit amount I receive?
No. Your loved ones will receive a lump sum benefit which is the greater of the insured amount or the total premiums paid over the life of the policy.
What causes of death are covered in the first 12 months of a Medibank Funeral Insurance policy?
During the first 12 months of cover, a benefit will only be paid for Accidental Death or Accidental Serious Injury. No benefit will be paid if you die as a result of any other cause during this period.
What are some of Medibank's policy exclusions?
All policies have exclusions. For example, Medibank won't pay out as a result of suicide occurring within 13 months of taking out a policy. Trauma insurance won't pay out for cancer, strokes, open-heart surgery or heart attacks within 90 days of you taking out cover.
Read Medibank's PDS (Product Disclosure Statement) for each policy so you understand the full list of exclusions.
How many beneficiaries can I nominate under my Medibank Life Insurance policy?
You can nominate up to 5 beneficiaries. Read more on the rules around life insurance beneficiaries.
Is my Medibank Life Insurance sum insured protected against inflation?
Yes. Benefit amounts automatically increase by 5% on each policy anniversary.
What factors affect the cost of Medibank Life Insurance premiums?
Your premium amount is determined based on your age, sum insured, any additional options you add to your policy, your gender, your smoking status, your health, family history, occupation and any hazardous activities you participate in.
