Resources: Insurance

Accidental Death

Means a visible and external event that was unexpected and unintended which caused the injury and death of the person.

Agreed Value

The Insured Monthly Benefit is agreed with you at the time of application and is based on your income at that time.

Any Occupation

Insurance option that covers any occupation for which you are reasonably suited by education, training or experience.

Beneficiary/Beneficiaries

The person/persons nominated by the life insured to receive a benefit payment.

Benefit Indexation

The Sum Insured on your benefit will automatically increase each year by the higher of the CPI increase or 5%.

Benefit Payment

The amount of money that would be paid out by the insurer to the Life insured, beneficiary(s) or policy holder as a result of a successful claim.

Benefit Period

The maximum period during which the monthly income benefit is payable.

Buy Back Option

Allows you to apply to restore Death cover by the amount it was reduced after payment of your claim for Total & Permanent Disability or Trauma cover, without having to provide additional evidence of your health, occupation or pastimes.

Exclusion of Cover

The insurer will not cover or provide a benefit payment if the claim is for an excluded item.   

Expiry Age

The specified age at which the policy expires.

Final Expenses Benefit

If you die before your policy expires the insurer will pay your nominated beneficiary or the policy owner 10% of the Sum Insured (up to a maximum of $10,000) to assist in dealing with immediate financial expenses. The insurer will need to be provided with a certified copy of the death certificate before this benefit is paid.

Full Time Employment

For Total and Permanent Disability, working a minimum of 20 hours per week, 48 weeks per year excluding public holidays.

For Income Protection, working a minimum of 25 hours per week, 48 weeks per year excluding public holidays.

Funeral benefit                   

Is a lump sum advance designed to meet funeral expenses while the claim is being assessed.  The death benefit payable will be reduced by the amount of the advance.

Guaranteed Future Insurability

In certain circumstances this allows an insured person to increase their existing Death cover and/or TPD cover and/or Trauma cover without providing any further evidence of health or insurability.

Income Protection Insurance

A regular income payment paid by the insurer to you in the event of illness/injury.

Indemnity

Is the benefit payment paid to you by the insurer based on your income in the 12 months immediately before you became unable to work.

Indexation Benefit

Each year the amount of cover is increased in line with inflation (CPI) or 5%, whichever is higher.

Injury 

A physical injury which occurs whilst the policy is in force and which results solely, directly and independently of a pre-existing condition or any other cause.

Insured Monthly Benefit

The Insured Monthly Benefit is stated on the policy schedule and may be adjusted by any benefit alterations the policy owner has affected, or which have been imposed by the insurer and notified to the policy owner.

Interim Accident cover

While your application is being considered, this provides you with Interim Accident cover at no extra cost.

Level Premium

The premium will continue to be based on your age when you started the plan.

Life (Death) Insurance

A lump sum payment of money by the insurer to the nominated beneficiary/beneficiaries in the event of death as stated in the policy document.

Linked Cover

Gives you the option to bundle insurance policies together to save on multiple policy fees. 

Non-Smoker

Means that, at a point in time, not having smoked tobacco or any other substance for a continuous period of 12 months ending at that point in time.

Own Occupation

Insurance cover option for that particular occupation in which you were engaged immediately prior to ceasing work.

Premium Freeze

Provided you are age 35 or older and you are paying your premiums on a stepped premium basis you can elect to freeze your premiums. The amount of cover will be decreased accordingly if this option is chosen.

Premium Loading

The insurer determines there is a higher than normal risk in accepting your application and insuring you thus increasing the likelihood of a future benefit payment. As such, the premiums are increased in accordance with this additional risk borne by the insurer.

Reinstatement Option

Allows you to apply to restore the benefit amount the insurer has paid after a claim, without having to provide additional evidence of your health, occupation or pastimes.

Spouse

Means the opposite sex partner of the life insured in a traditional ‘marriage', ‘common law marriage' or in a ‘de facto relationship'.

Stand Alone Cover

Allows you to keep each insurance policy separate.

Stepped Premium

Your current age will determine the premium payable each year.

Term

Refers to the duration of the policy from the commencement date to the expiry date.

Terminal Illness

Means the diagnosis of the life insured with an illness which in the opinion of an appropriate specialist physician approved by the insurer, is likely to result in the death of the life insured within 12 months of the diagnosis regardless of any treatment that may be undertaken.

Total and Permanent Disability Insurance

A lump sum payment of money by the insurer to you if, in the insurer's opinion, after consideration of medical and any other evidence, that you are incapacitated to such an extent that you are unlikely ever to be able to work again.

Trauma Insurance

A lump sum payment of money by the insurer to you in the event that you suffer a specific Trauma condition that is covered by the insurer.

Waiting Period

The duration of time between the acceptance of claim by the insurer and the commencement of benefit payments.

Waiver of Premium

During the benefit payment period the insurer will waive premiums that fall due if the insured person is totally disabled.