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 choose Life Care as a stand-alone policy, or combine it with Accidental Death, TPD, Trauma 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.
- Life Care benefit: lump sum is paid if the life insured dies
- Terminal Illness benefit: pays a lump sum if the life insured is terminally ill and likely to die from the illness within 24 months
- Advance payment: provides 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: doubles the lump sum we pay (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: automatically reinstates Life Care 12 months after we pay a TPD or Trauma claim
- Financial planning benefit: pays up to $5,000 to help cover the costs of seeking financial advice if we pay a Life Care benefit
- Accommodation benefit: helps 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: after 5 years of cover, we will automatically increase the payment of the Life Cover or Terminal Illness benefit by 5% at no extra cost
- Allows 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 policy holder 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 in his super fund’s insurance plan.
The adviser recommended he put in place a financial plan that included Life Care Cover 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 Cover?
*Features and benefits of Life Care cover inside superannuation vary from outside superannuation.