Life Care Cover provides a lump sum payment in the event of terminal illness or death. The lump sum paid is the amount for which your client is insured. Subject to underwriting rules, there are no limits on the amount your client can be insured for.
This type of insurance is also known as term insurance.
You can combine it with Accidental Death Cover, TPD Cover, Trauma Cover, Child Cover and/or Income Protection.
Facts of Life
At a glance
- Unlimited maximum cover
- Stepped premium type:
- Minimum entry age 15
- Maximum entry age 70
- Level premium type:
- Minimum entry age 17
- Maximum entry age 54
- Life Care expiry age: Policy anniversary before 99th birthday
- Note: TCPS policy anniversary before 80th birthday.
- Life Care benefit: we pay a lump sum if the life insured dies
- Terminal Illness benefit: we pay a lump sum if the life insured is terminally ill and likely to die from the illness within 24 months
- Advance payment: we provide a cash advance of the Life Care benefit of up to $30,000 to help with the cost of a funeral or similar expenses
- Severe Hardship Booster benefit: we double the lump sum paid (up to $250,000) if the insured dies or is likely to die within 24 months from Meningococcal Disease, Legionnaires' Disease or Motor Neurone Disease
- Life Care Buy Back benefit: we automatically reinstate Life Care on the last day of the buy back period after a TPD or Trauma claim.
- Financial planning benefit: we pay up to $5,000 to help cover the costs of seeking financial advice if we pay a Life Care benefit
- Accommodation benefit: we help cover the accommodation costs of an immediate family member who needs to stay nearby if the insured is terminally ill and confined to a bed a long way from home
- Loyalty Bonus benefit: if your client keeps their Life Care cover for over five years, we will automatically increase the payment of the Life Cover or Terminal Illness benefit by 5% at no extra cost
- We allow your client to nominate up to five beneficiaries.
Download the PDS for full list of benefits >
When is a benefit paid?
Life Care pays a lump sum when the life insured dies or becomes terminally ill.
Take Rob for example, a project manager with two children. Rob wasn’t too concerned about his family’s financial situation because they had superannuation, insurance in super and some savings. However, Rob’s wife did have concerns, so they sought the advice of a financial adviser. Rob was surprised to find out he only had $70,000 life cover in his super fund’s insurance plan.
The adviser recommended he put in place a financial plan that included Life Care to top up the life insurance he held in his super fund.
Just as well he did because sadly, two years later Rob died in a car accident. CommInsure paid Rob’s family a lump sum of $700,000, which covered the mortgage and all of the children’s educational costs.
Imagine the financial consequences for Rob’s family if he hadn’t had Life Care?
The examples used are for illustrative purposes only.
*Features and benefits of Life Care inside super vary from outside super.