About Survivors Income Cover
Survivor’s Income Cover provides a regular monthly income for those who depend on you if you die or become totally and permanently disabled, due to accident or illness.
In conjunction with Life Assurance, Survivor’s Income Cover can provide an ideal mix of lump-sum payment (to pay debts) and ongoing income (to fund family expenses).
An ideal complement to lump-sum insurance, Survivor’s Income Cover relieves problems frequently associated with lump sum payments at a time the survivor may least be able to cope, such as:
- Where to invest the money
- How much to withdraw
- Taxation complexities
- Dealing with demands from family
Ongoing income for families
- Payment of a regular monthly income upon your death or diagnosis of a terminal illness.
- Can be stand alone or part of a complete protection policy.
- Monthly income can be increased for additional children, with no additional medical evidence required.
We also have an alternative Life Cover option. Click Life Cover to find out more about this alternative option.
- Entry age is from age 16 to age 75.
- There is no expiry age.
- Payable fortnightly, monthly, half-yearly or yearly.
- Minimum monthly benefit of $500.
- Maximum monthly benefit of $50,000 subject to financial and medical underwriting.
- Yearly renewable premiums are fixed for one year at a time and will normally increase in line with age.
- Level term premiums are fixed for the life of the policy.
You can choose the benefit period that best suits your needs:
- We offer a number of benefit periods from 2 to 30 years; or
- You can choose a benefit up to the date at which the insured person would have reached their 55th, 60th or 65th birthday; or
- If you choose the regular payment option, a benefit is payable until the death of a nominated beneficiary, e.g. a spouse or a partner. In this instance payments would be made for a minimum period of 10 years.
Terminal illness benefit
If you are diagnosed as terminally ill and are expected to die within 12 months, the monthly benefit will commence.
You can choose to have your Survivor’s Income Cover increase each year by the greater of 2% or the Consumer Price Index up to age 65, regardless of health. Each year we will advise you of the increased sum assured and new premium. Where premiums are level and indexation option has been selected, the sum assured will be increased by a fixed rate of 2% each year.
You can increase your Survivor’s Income Cover monthly benefit without further medical evidence on the occurrence of certain events. These events include getting married, civil union, having children or taking out a mortgage, where your income increases by a certain amount, the death of a spouse, partner or child or stopping work to take full time physical care of a dependent relative or when you reach ages 25, 30, 35, 40 or 45, or increasing your shareholding in a business, depending on the type of cover. Refer to your policy document for details. Limits apply.
Premium holiday option
You may opt to suspend cover and premiums in the event of redundancy, bankruptcy, tertiary studies or overseas travel. Cover can be reinstated without evidence of health within one year from the start of this option. The maximum monthly payment under this option is $1,500. The premium holiday option may be exercised once in the lifetime of the policy. Not available with Level Term.
Trauma Benefit and Total & Permanent Disability Benefit
Two additional cover options can be added to the Survivor’s Income Cover:
Total and Permanent Disability benefit
If you are totally and permanently disabled and unable to work again the monthly benefit is payable. This option expires at age 65. After age 65, if you have a longterm care disability, such that you will never be able to perform two of the activities of daily living, the monthly benefit is payable.
If you suffer one of a range of specified conditions the monthly benefit is payable (see Trauma Cover). This option has no expiry age.
You can have the benefit indexed during a claim period by up to 5% p.a.
Waiver of Premium Cover
While the insured person with the Waiver of Premium Cover is totally disabled, the premiums due on the policy after the waiting period ends will be waived and premiums paid during the waiting period will be refunded.
All of the optional benefits above require payment of an additional premium
Disclaimer: This is a convenient summary of the key points of this insurance policy. It is not, and is not intended to be, a policy document. Details of definitions, benefits, standard exclusions/limitations, terms and conditions are contained in the official policy document which is available from your financial adviser. You should read the policy document carefully to make sure you understand exactly what cover is provided under each benefit. This document does not provide a personalised financial advice service.