Life Insurance

 

This is when your Total & Permanent Disablement (TPD) Cover or Crisis Recovery/Trauma Cover converts to protect you solely for Loss of Independence/loss of independent existence on the policy anniversary before you turn either 65 or 70.

 

Loss of Independence/loss of independent existence cover is less comprehensive and the policy terms are much more difficult to meet, compared to TPD Cover and Crisis Recovery/Trauma Cover.

 

Once your TPD or Crisis Recovery/Trauma cover has converted, you will only be paid a Loss of Independence/loss of independent existence benefit if you meet the definition of Loss of Independence/Loss of independent existence.

 

To fully understand the conversion of your cover to Loss of Independence and when this happens, it’s important for you to read and understand your policy document and any significant event notices we’ve sent you.

 

You can also learn more at conversion to loss of independence.

 

There are different ways you can structure your insurance protection when consulting with a financial adviser.

 

Depending on what suits your needs, budget, and personal circumstances, you can structure your insurance cover as:

If you have Stand Alone cover, your cover will not be reduced after a claim payment under your other cover.  For example, Chloe has Life Cover of $500,000 and Stand Alone Crisis/Trauma Cover of $200,000. When we pay Chloe the $200,000 Crisis/Trauma cover benefit, her $500,000 Life Cover remains the same.

 

However, if you have Rider Cover or Linked benefits, your cover will be reduced after a claim payment on your other cover. For example, Olivia has Life Cover of $500,000 and Rider Crisis/Trauma Cover of $200,000. When we pay Olivia the full Crisis/ Trauma benefit of $200,000, her Life cover is reduced to $300,000.

 

As life happens, your insurance needs may change. Major life events like marriage, career changes, growing your family, starting a business, or retiring may require a change in the amount, type, and structure of your insurance protection. We recommend that you regularly consult with your financial adviser to help you determine which options best suit your current circumstances.

 

You can also learn more about policy structure at understanding policy structure.

 

As policy owner(s) of a life insurance policy, you can nominate your preferred beneficiary/beneficiaries to receive financial support in the event of your death. This process is called nomination of beneficiaries.

 

For policies held outside super, the beneficiary/beneficiaries can be any person or entity like a family member, a company, or a trustee of a trust. Once a valid nomination is made, the death benefits will be paid directly to the nominated beneficiary/beneficiaries.

 

For policies held inside super, only the following beneficiary/beneficiaries are eligible under superannuation laws: 

There are three types of nomination of beneficiaries for policies held inside super:

If you do not make a nomination or if your nomination becomes invalid, it can result in a lengthy process before the death benefits can be paid. Even then, the money might not go to your intended beneficiary/beneficiaries.

 

It is important to review your nomination regularly to make sure it is still appropriate.  We recommend obtaining expert financial or legal advice on the matter.

 

Learn more about nomination of beneficiaries at nomination of beneficiaries.