Discover Whether Nib Offers Value for Money Life Insurance

Published: September 11, 2018

You know about nib health insurance policies, but maybe you’re wondering how their life insurance products compare to other leading life insurance companies in Australia.

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If you've seen a nib life insurance advert and would like to know more or already have a life policy them and feel it is time to review your cover, then the guide below might be of service.

ComparingExpert does not currently provide nib life insurance quotes, but you can request one directly from the company and then compare their price and benefits with the 10 retail life companies we provide quotes for.

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The launch of nib Value Life Insurance

Nib started as one of Australia's most significant private health funds and has since grown to include overseas student health cover, travel insurance, life cover, income protection insurance and funeral plans.

In February 2008, nib health insurance teamed up with Tower Australia, now known as TAL Life limited, to offer life insurance products to Australians aged 18 to 65 years old.

Value Life Insurance customers automatically receive Premium Protection, which reimburses your health cover and waive your premium costs for up to 6 months when you're severely incapacitated due to an accident and unable to perform daily activities.

nib life insurance review

Life insurance coverage provided by nib gives you the opportunity to protect yourself and your loved ones from the potential financial loss resulting from death, illness or injury. However, you must be an Australian resident, currently living in Australia, with no plans to move overseas.

You can apply for coverage online or over the phone with no complex application forms to fill out or medical tests to undergo. You'll also receive one month's cover free for every year you pay annually.

Death benefit

You can choose a cover from $100,000 to $1 million, and your premium will be calculated using factors like your age, gender, health status, your lifestyle, whether you smoke and your occupation.

Your death benefit is payable when you die or get diagnosed with a terminal illness with less than 12 months to live.

Once a claim has been approved, the insurer will offer an advanced payment of $10,000, to assist your loved ones with paying for funeral arrangements.

Exclusions: No benefit will be paid if death is a direct or indirect result of suicide or an intentional self-inflicted act within the first 13 months of your policy commencing or being reinstated.

Please note; if you have other life policies with TAL (excluding funeral insurance, insurance for over 55s and income protection cover), the maximum benefit that will be payable under all policies are $1.2 million, plus any indexation accrued to a maximum of $2.5 million. This information is as stated on the nib life insurance PDS.

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nib income protection

Receive a monthly benefit of up to 85% of your pre-tax income, to a maximum of $10,000, when you're unable to work for a period because of an illness or injury. You can choose a waiting period of either 14 or 28 days and benefit period of 6, 12 or 24 months.

Benefits of income protection insurance from nib

  • Optional permanent disability cover: Choose a benefit amount between $50,000 to $500,000 to add to your basic cover for protection against sickness or an accident leaving you permanently disabled.
  • Optional involuntary unemployment cover: If working on a permanent basis for 30 hours or more a week, you can claim 85%, up to $3,000, a month for up to 3 months.
  • Basic cover available for student, at home parents and self-employed individuals. Receive 85% of your pre-tax income, up to $7,500, a month if you work or $3,000 a month when working less than 20 hours per week. A fixed waiting period of 28 days applies.

Exclusions on nib income protection insurance

Generally, no income protection, permanent disability or involuntary unemployment benefit will be paid if your claim is as a result of:

  • Heart attack, stroke or cancer within the first 6 months of your policy starting.
  • Being in jail or lawfully detained.
  • War and terrorism.
  • Any mental health disorder, including depression, anxiety, or any treatment complications.
  • Known or pre-existing medical conditions, including a BMI of 40 or higher, high blood pressure or cholesterol and being diabetic.
  • Self-harm, as well as drug and alcohol-related sicknesses or injuries.
  • Disorders relating to fatigue, including chronic fatigue syndrome.
  • Normal and uncomplicated pregnancy.
  • Sickness or injury related to aviation, apart from being a fare-paying passenger on a commercial flight.
  • Dangerous occupations, for example, working at heights above 20 meters.
  • Dangerous past-times, like competitive fighting or diving below 30 meters underwater.

Please review your product disclosure statement (PDS) for a full list of exclusions.

nib funeral plans

TAL Life Limited is the issuer of nib funeral plans, and thus responsible for the claims assessment and ongoing administration of your policy.

Usually after 24 hours of receiving a valid death claim, your funeral plan pays you up to $15,000 to help your family cover funeral expenses. This cover is available to all Australians aged 17 to 80, acceptance guaranteed.

Your benefit amount will generally remain the same unless you choose the Inflation Protection Options, which helps your cover amount stay in line with inflation. Take note, adding this option will also result in your premium increasing each year.

What does nib funeral insurance cover?

Funeral cover from nib helps pay for the cost of your final expenses when you die. You can also choose a Family Plan, so your financially dependent partner and children are covered. When you child turns 18, you can add them to your policy as an additional adult and will receive a 10% discount on their premium.

You can choose an accidental death period of either 12 or 24 months; this is the period for which you'll only receive cover if death is due to an accident.

If any of the members on your funeral plan dies because of an accident, nib will usually pay out double the benefit amount.

Frequently asked questions and answers

How do you take out a nib life insurance policy?

You can apply by calling a nib life insurance contact on 1300 164 200 or by requesting a quote online via their website.

What are the costs of taking out life insurance with nib?

The price of your policy is generally dependent on:

  • Your age
  • The level of cover you’re applying for
  • The benefits you add
  • Where in Australia you live
  • Whether you pay fortnightly, monthly, quarterly or annually
  • Your personal information, like your health, gender and smoking status

Do I need to go for a medical exam to apply for cover?

No, generally when applying for a nib life cover policy you do not need to go for a medical exam or have any medical tests done. However, you will have to comply with your duty of disclosure at application time.

How do you lodge a claim?

The claims process for nib income protection and Value Life insurance is pretty straightforward.

  • Step 1: Contact the insurer on 1800 633 170 informing them of your intention to claim and request that they provide you with the claim forms.
  • Step 2: Complete the claim forms and provide the insurer with al requested documentation, including:
    • Death certificate or medical practitioners’ certificate when claiming a death benefit.
    • Certified copy proving the age of the life insured.
    • Proof of sickness or injury when claiming income protection, involuntary unemployment or permanent disability.
    • Proof of income for the last 12 months and/or previous financial year.
  • Step 3: Your claim gets assessed, and the insurer will inform you of their decision.

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