What is Life Cover & Life Income Cover?
Life Cover is an insurance that pays you a lump sum if you die or are diagnosed with a terminal illness. Life Income Cover pays a monthly benefit for a period of time.
Why do you need Life Cover & Life Income Cover?
Life Cover or Life Income Cover is an easy and cost-effective way to provide for your family if you die or are diagnosed with a terminal illness. Once it's in place you can have peace of mind that your family will be looked after when you have gone.
How does it work?
You can choose to receive your money as a lump sum payment (Life Cover), as a monthly payment (Life Income Cover), or a bit of both. Some examples of how this money can help are:
- Subsidise a lost income
- Pay off the mortgage or other debts
- Provide financial 'breathing space' for your loved ones
- Pay for education and healthcare costs for your family in the future
- Pay for funeral expenses
What's not covered?
Intentional self-inflicted harm including suicide or attempted suicide within the first 13 months of the policy commencement.
Benefit details
Life Cover & Life Income Cover provide several benefits that are built-in to the cover as well as some options you can choose to add at an additional cost. So it's easy to tailor your Life Cover & Life Income Cover to suit your needs and budget.
Life Cover: Built-in benefits
Life Cover provides the following benefits that are built-in:
Terminal Illness Benefit
What is it?
An early payment of the Life Cover sum insured if you're diagnosed as terminally ill.
How it works:
If you're diagnosed as likely to die within 12 months, the full Life Cover sum insured may be payable. In this event no further Life Cover is payable.
Why it's important:
Provides financial security and some comfort at a time when there may be little or no income for the family.
Bereavement Support Benefit
What is it?
An accelerated payment up to $25,000 to cover funeral expenses.
How it works:
An acceleration of up to $25,000 of the Life Cover sum insured upon notification of your death, to assist with funeral expenses. The Life Cover sum insured will be reduced by any Bereavement Support Benefit payment made. The remaining balance of the Life Cover sum insured may be payable once a full claim assessment is completed and accepted.
Why it's important:
Provides immediate financial assistance for your family to make funeral arrangements.
Financial and Legal Advice Benefit
What is it?
An additional payment of up to $2,500 for reimbursement of financial planning or legal advice fees.
How it works:
This benefit is paid as a reimbursement of fees for financial planning and/or legal advice obtained for the use and protection of the Life Cover sum insured paid.
Why it's important:
Allows for consultation of a financial planner or legal professional (barrister/ lawyer/solicitor) if you require financial or legal advice in regards to how to invest the benefit paid.
Funeral Transfer Benefit
What is it?
Cover for transport costs up to $20,000 to bring your body back to New Zealand if you die while overseas.
How it works:
If you die whilst overseas, we'll reimburse the costs of bringing your body back to New Zealand, up to $20,000.
Why it's important:
Peace of mind knowing that if you die while overseas your loved ones can get you home immediately.
Life Events Benefit
What is it?
Ability to increase your cover by up to $250,000 after certain 'life events' without providing any further evidence of your health.
How it works:
These events include marriage or civil union, divorce or legal separation, full-time care of a dependent relative, having a child, an increase in annual salary, taking out a mortgage or purchasing property. For a full list of events covered, please refer to policy wordings. The maximum increase under the Life Events Benefit during the duration of the contract is limited to 75% of the original Life Cover sum insured. You must apply for the Life Events Benefit within 180 days of the event occurring, or within 60 days of the policy anniversary date after the event occurring. This benefit expires on your 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Life Cover: Optional benefit
Optional benefit that you can choose to add for an additional premium:
Optional Guaranteed Insurability
What is it?
Allows you to increase your cover by up to $200,000 on every second anniversary date without providing any further evidence of your health.
How it works:
It allows you to increase the Life Cover sum insured on every second anniversary date up to a maximum of 25% of the underwritten sum insured or $200,000 (whichever is greater) without any further evidence of health. The total maximum increase available is 2 times the underwritten Life Cover sum insured up to $1,000,000. The Optional Guaranteed Insurability must be exercised within 30 days of the applicable policy anniversary date. This option expires on the insured person's 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Life Income Cover: Built-in benefits
Life Income Cover provides the following benefits that are built-in:
Terminal Illness Benefit
What is it?
An early payment of the Life Income Cover if you're diagnosed as terminally ill.
How it works:
Payment of the monthly sum insured will commence, if you have been diagnosed as likely to die within the next 12 months.
Why it's important:
Provides financial security and some comfort at a time when there may be little or no income for the family.
Bereavement Support Benefit
What is it?
An accelerated payment of up to 1 month's Life Income Cover to cover funeral expenses.
How it works:
An acceleration of the lesser of the first month's Life Income Cover sum insured or $25,000 upon notification of your death, to assist with funeral expenses. The monthly benefit will commence once a full claim assessment is completed and accepted.
Why it's important:
Provides immediate financial assistance for your family to make funeral arrangements.
Financial and Legal Advice Benefit
What is it?
An additional payment of $2,500 for reimbursement of financial planning or legal advice fees.
How it works:
The benefit is paid as a reimbursement of fees for financial planning and/or legal advice obtained for the use and protection of the Life Income Cover sum insured paid.
Why it's important:
Allows for consultation of a financial planner or legal professional (barrister/ lawyer/solicitor) if you require financial or legal advice in regards to how to invest the benefit paid.
Funeral Transfer Benefit
What is it?
Cover for transport costs to bring your body back to New Zealand if you die while overseas.
How it works:
If you die whilst overseas, we'll reimburse the costs of bringing your body back to New Zealand, up to 3 times the monthly Life Income Cover sum insured.
Why it's important:
Peace of mind knowing that if you die while overseas your loved ones can get you home immediately.
Life Events Benefit
What is it?
Ability to increase your cover by up to $750 per month after certain 'life events' without providing any further evidence of your health.
How it works:
These events include marriage or civil union, divorce or legal separation, full-time care of a dependent relative, having a child, an increase in annual salary, taking out a mortgage or purchasing property. For a full list of events covered, please refer to policy wordings. The maximum increase under the Life Events Benefit during the duration of the contract is limited to 75% of the original Life Income Cover sum insured. You must apply for the Life Events Benefit within 180 days of the event occurring, or within 60 days of the policy anniversary date after the event occurring. This benefit expires on your 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Life Income Cover: Optional benefit
Optional benefit that you can choose to add for an additional premium:
Optional Guaranteed Insurability
What is it?
Allows you to increase your cover every 2 years by up to 25% without providing any further evidence of your health.
How it works:
It allows you to increase the Life Income Cover sum insured on every second anniversary date up to a maximum of 25% of the underwritten sum insured without any further evidence of health. The total maximum increase available is 2 times the underwritten Life Income Cover sum insured or $5,000 monthly. The Optional Guaranteed Insurability must be exercised within 30 days of the applicable policy anniversary date. This option expires on the insured person's 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
