By Tony Smilevski · Updated 11 October 2026
Key points
- AIA's PDS describes Life Cover as paying a lump sum on death or terminal illness, and TAL's PDS says its Life Insurance Benefit Amount is payable on death or terminal illness.[1][2]
- TAL's PDS defines terminal illness as a life expectancy of less than 12 months after current or reasonably expected treatment, while AIA's PDS uses an illness likely, in a specialist's reasonable opinion, to result in death within 24 months of diagnosis whatever the treatment; inside super, both add extra requirements (see the table).[3][4]
- TAL's PDS says the cost of cover isn't guaranteed to stay the same each year, for both Variable Age-Stepped and Variable Premium cover.[5]
- TAL's PDS sets application ages of 19 to 74 with Variable Age-Stepped Premiums or 19 to 60 with Variable Premiums (age next birthday), and ends the plan on the policy anniversary before the 100th birthday, or before the 75th birthday when structured through TAL Super or a retail superannuation fund.[2][6]
- The AIA, TAL, ClearView and Acenda PDSs each set a 13-month exclusion for suicide or intentional self-inflicted acts (the exact wording differs), and each sets its own conditions for how it applies where cover replaces earlier cover.[4][6][7][8]
Life insurance pays a lump sum if the person insured dies or is diagnosed with a terminal illness. The documents quoted below set their own definitions, age limits and exclusions. This guide quotes insurer product disclosure statements (PDSs) and target market determinations (TMDs, which say who a product is designed for).
What is life insurance?
It is insurance that pays a lump sum on death or terminal illness. AIA's PDS says "Life Cover pays a lump sum if you pass away or are diagnosed with a Terminal Illness."[1] TAL's PDS says its Life Insurance benefit amount is payable "in the event of death or a Terminal Illness".[2]
How does life insurance work?
You choose an amount of cover and pay premiums. If a claimable event happens while cover is in force and no exclusion applies, the insurer pays that amount. Premiums can change. TAL's PDS says the cost of cover isn't guaranteed to stay the same each year, for both Variable Age-Stepped and Variable Premium cover.[5] Our premiums guide explains the premium types.
What counts as terminal illness. The PDSs quoted here define it differently:
- TAL: after taking account of current or reasonably expected treatment, the life insured "has a life expectancy of less than 12 months". Inside super, the super law definition of a terminal medical condition must also be met.[3]
- AIA: an illness likely, in a specialist's reasonable opinion, to result in you passing away within 24 months of diagnosis, whatever the treatment. Under its Superannuation Plan, two medical practitioners, one a specialist in a related area, must certify it.[4]
- ClearView: two medical practitioners certify an incurable sickness, and death is medically expected within 24 months with standard treatment.[7]
- Acenda: outside super, an illness that, even with appropriate medical treatment, is likely to lead to death within a period ending no more than 24 months from the date Acenda is notified in writing, in the opinion of the treating specialist (and, where required, an approved specialist).[9] Inside super, two doctors, one an approved specialist, must give that opinion, with the 24 months running from the date they certify the condition.[10]
Effect of a terminal illness payment. ClearView's PDS says the benefit amount is reduced by any amount paid for terminal illness.[11]
Advance payments after a death. These PDSs describe an advance while the claim is assessed:
- AIA's Final Expenses advances 10% of the Sum Insured, up to $25,000. AIA lists it for its Ordinary Plan, not its Superannuation Plan.[1]
- ClearView's Immediate Expenses Benefit advances the lesser of $25,000 and the benefit amount. It is only available outside super, and ClearView can recover it if the claim is later declined.[7][11]
Our claims guide covers the claim process.
What types of life insurance are there?
People say "life insurance" for several covers that pay on different events. TAL's PDS describes them this way:
- Life insurance: payable on death or terminal illness.[2]
- TPD insurance: the benefit amount is paid if you become totally and permanently disabled, depending on the applicable TPD definition.[12] See our TPD guide.
- Critical illness (trauma) insurance: a benefit is payable if you suffer a critical illness event listed in the PDS.[13] ClearView calls its version Trauma Cover.[14] See our trauma guide.
- Income protection: a benefit if you suffer a loss of income due to sickness or injury.[15] See our income protection guide.
Accidental death cover is narrower. ClearView's PDS pays only if you die "solely and directly as a result of an accident", with no other cause involved. It excludes death due to natural causes and vascular accidents such as a heart attack or stroke.[16] The ClearView TMD's criteria for accident cover include being declined full Life Cover or unable to access it for health reasons, being unable to afford it, and not needing terminal illness cover.[17]
Who owns the policy, and who gets paid?
The policy owner holds the policy, and can be someone other than the person insured.[18] TAL's PDS lists these ownership options: individual, superannuation, trust, company or business, and joint ownership.[2]
Who is paid also varies:
- AIA's PDS says that for its Ordinary Plans it pays benefits "directly to the Policy Owner or your nominated beneficiaries". For its Superannuation Plans, the trustee distributes benefits under the fund's rules and super law.[19]
- ClearView's PDS says the policy owner generally receives benefits. For Life Cover held outside super, a nominated beneficiary receives the death benefit, and you can nominate up to five.[20]
- Acenda's PDS pays each nominated beneficiary their share, or your estate if there is none, or the policy owner if that is someone else.[18]
Our mortgage and family guide has more.
What are the age limits for taking out life insurance?
The PDSs quoted here set their own limits for applying and for when cover ends, and the limits depend on premium type and on whether cover is inside super. Examples:
- TAL: apply at 19 to 74 with Variable Age-Stepped Premiums, or 19 to 60 with Variable Premiums (age next birthday). The plan ends on the policy anniversary before your 100th birthday, or before your 75th birthday when structured through TAL Super or a retail superannuation fund. At that point you can apply to move it outside super and continue to the anniversary before your 100th birthday, if the application is received before the plan end date.[2][6]
- AIA: Ordinary Plan entry ages are 10 to 74 years with a variable age-stepped premium and 34 to 63 years with an Optimum or variable premium. Superannuation Plan entry ages are 15 to 73 years and 34 to 63 years. Cover expires on the policy anniversary before your 100th birthday, including when owned by an SMSF trustee, or before your 75th birthday if owned by the trustee of AIA Insurance Superannuation Scheme No2 or of an Approved Superannuation Fund.[1]
- ClearView: minimum entry age 18. Maximum entry age 75 with a variable age-stepped premium and 55 with a variable premium. Expiry age 99.[14] Cover ends on the policy anniversary immediately after you turn 99.[11]
- Acenda: its supplementary PDS replaces the PDS application ages (next birthday) with 11 to 76 outside super and 16 to 71 inside super.[21] Insurance expires on the Review Date after reaching age 100 outside super, or 74 inside super, where a conversion option is available to continue as a non-super policy.[22]
TPD and trauma have their own limits.
What does life insurance not cover?
The PDSs quoted here all list exclusions. One well-known one is the suicide clause. Wording and period from each PDS:
- AIA: "A benefit is not payable for Life Cover in the event of death from suicide within 13 months after this benefit commences, is reinstated, or increased (but only in relation to the increased amount)". It is waived if you are replacing life cover and the full exclusion period under the old policy has elapsed, for the amount replaced only.[4]
- TAL: no payments if the claim arises directly or indirectly from "an intentional, self-inflicted act" within 13 months of the plan start date, an increase (increase amount only) or the latest reinstatement. It is waived, up to your previous death cover, if that cover was in force for at least 13 consecutive months before the plan start date.[6]
- ClearView: no benefit if death is caused directly or indirectly by "suicide or an intentional self-inflicted act within 13 months" of the cover start date, an increase (increased amount only, not indexation increases) or the last reinstatement, or by "anything we have specifically excluded, as stated on your policy certificate". It doesn't apply to replacement cover if conditions are met, including a minimum of 13 consecutive months on the old policy, and any amount above the old policy's cover is still excluded.[7]
- Acenda: no benefit for death or terminal illness "arising from or contributed to by suicide or attempted suicide" within 13 months after the insurance started, was last reinstated or was increased. If you are replacing similar insurance held continuously since its start date, the 13 months can run from that start date, on the amount replaced.[8]
TAL's PDS also refers to a special condition shown in the policy schedule, and says a claim may be denied if you haven't complied with your "duty to take reasonable care".[2] Our pre-existing conditions guide covers health questions.
How the insurers compare
- Insurer and topic: TAL: terminal illness — What its PDS says: Life expectancy under 12 months after current or reasonably expected treatment; inside super, the super law definition must also be met.[3]
- Insurer and topic: AIA: terminal illness — What its PDS says: Death likely within 24 months of diagnosis, regardless of any treatment, in a specialist's reasonable opinion; its Superannuation Plan needs two practitioners to certify it.[4]
- Insurer and topic: ClearView: terminal illness — What its PDS says: Two practitioners certify an incurable sickness, death medically expected within 24 months with standard treatment; certificates current, one practitioner an approved specialist.[7]
- Insurer and topic: Acenda: terminal illness — What its PDS says: Death likely within 24 months even with appropriate medical treatment, counted from written notice to Acenda (outside super) or two doctors' certification (inside), on specialist opinion.[9][10]
- Insurer and topic: AIA: suicide exclusion — What its PDS says: No benefit for suicide within 13 months of start, reinstatement or increase (increase only), unless waived on replacement.[4]
- Insurer and topic: TAL: suicide exclusion — What its PDS says: Nothing paid for an intentional self-inflicted act within 13 months of start, increase (increase only) or latest reinstatement, unless waived on replacement.[6]
- Insurer and topic: ClearView: suicide exclusion — What its PDS says: No benefit for suicide or an intentional self-inflicted act within 13 months of start, increase (increase only) or reinstatement, unless replacement conditions are met.[7]
- Insurer and topic: Acenda: suicide exclusion — What its PDS says: No benefit for death or terminal illness from suicide or attempted suicide within 13 months of start, reinstatement or increase (increase only), unless replacement rules apply.[8]
- Insurer and topic: TAL: ages — What its PDS says: Apply at 19 to 74 (age-stepped) or 19 to 60 (variable), by age next birthday; ends at the anniversary before the 100th birthday (75th through TAL Super or a retail super fund).[2][6]
- Insurer and topic: AIA: ages — What its PDS says: Ordinary Plan entry 10 to 74 (age-stepped) or 34 to 63 (Optimum or variable); Superannuation Plan and expiry ages differ (see What are the age limits for taking out life insurance?).[1]
- Insurer and topic: ClearView: ages — What its PDS says: Entry 18 to 75 (age-stepped) or 18 to 55 (variable); cover ends on the policy anniversary after you turn 99.[14][11]
- Insurer and topic: Acenda: ages — What its PDS says: Apply at 11 to 76 outside super or 16 to 71 inside (supplementary PDS ages); expires at the Review Date after 100 outside super, or 74 inside.[21][22]
Each suicide exclusion has its own replacement-cover conditions (see What does life insurance not cover?).
Is life insurance in super, and is it tax deductible?
Cover can sit outside super or inside a super fund. That affects who is paid, when cover ends (see the age limits above) and the extra super law conditions. Acenda's PDS says its death benefit for super policies is paid to the trustee, who pays it according to super law.[23] AIA's PDS says the trustee must also ensure the fund's conditions of release (the super law conditions for paying a benefit) are satisfied before it can release a benefit.[4] Our life insurance in super guide has more.
On tax, the ATO's income protection page lists "life insurance premiums" among the premiums you can't claim a deduction for.[24] How tax applies depends on your circumstances, such as who owns the policy and how it is paid. A registered tax agent or accountant can say how it applies to you. See our tax deductibility guide.
What does the Life Insurance Code of Practice say?
AIA and Acenda both say they have adopted the Life Insurance Code of Practice. AIA's PDS says the Code contains minimum standards of service customers can expect, and sets timeframes for insurers to respond to claims, complaints and requests for information.[25] Acenda's PDS says the Code sets industry standards for customer service.[26]
Is life insurance different for the self-employed?
Life cover doesn't replace income while you're alive but unable to work. That's income protection: see our income protection guide.
For business owners, what often differs is who owns the policy and what it is for. AIA's TMD describes customers who want their business to continue with less financial disruption on the loss of a key person, or to ensure business succession.[27] Acenda's Business Safeguard Option lets you apply to increase cover without further medical evidence when a business event happens, if the insurance is used for a buy/sell agreement, a loan guarantee, or key person insurance (key person outside super only). Any increase must be approved by Acenda.[28][29] See our key person guide and business protection guide.
Do I need life insurance?
We can't tell you whether you need it. That depends on your own circumstances, and this page doesn't take them into account.
AIA's TMD describes customers with financial commitments, including to dependants such as a spouse or children, that their estate would not satisfy on terminal illness or death. Examples are mortgage and other debt servicing costs, final expenses and income replacement.[27]
What to weigh: it pays once, on death or terminal illness, not for sickness or injury while you are alive. Premiums are ongoing. Health history and exclusions affect what is available. Our how much cover guide explains the general method.
Questions to ask before you choose
- Which events does the cover pay on, and how does the policy define terminal illness?
- What are the age limits to apply, and when does cover end, inside and outside super?
- How long is the suicide clause, what restarts it, and is it waived if I'm replacing a policy?
- Who owns the policy, and who is nominated to be paid?
- Are premiums variable age-stepped or variable, and can the insurer change them?
- Are there special conditions on my cover, and how would my health history be underwritten?
Read the insurer's PDS and TMD before deciding. You can find them in our PDS and TMD library. We deal with 11 Australian life insurers. For general information about anything in this guide, book a time with Tony or call 0433 22 77 11.
Sources
- [1] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 16.
- [2] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 7.
- [3] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 47.
- [4] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 18.
- [5] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 18.
- [6] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 19.
- [7] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 40.
- [8] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 81.
- [9] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 127.
- [10] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 78.
- [11] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 41.
- [12] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 8.
- [13] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 9.
- [14] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 10.
- [15] TAL Accelerated Protection Combined PDS and Policy Document (Dec 2025), PDF page 11.
- [16] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 42.
- [17] ClearView TMD (Apr 2026), PDF page 5.
- [18] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 76.
- [19] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 9.
- [20] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 35.
- [21] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 3.
- [22] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 28.
- [23] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 47.
- [24] Australian Taxation Office, Income protection insurance (retrieved 30 September 2026).
- [25] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 4.
- [26] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 62.
- [27] AIA TMD (Aug 2026), PDF page 1.
- [28] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 67.
- [29] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 68.
Just so you know, Tony Insurance operates under Sustainable Life Solutions (AFSL 536966) and can only give general advice about life insurance. That means we'll tell you what you need to know for you to make a good decision, but we can't give you specific advice or recommendations. It also means that everything on our website is only general information and isn't specific to you.
Toni Smilevski, Authorised Representative 343156 of Sustainable Life Solutions Pty Ltd (AFSL 536966)