Extra Benefits Of A Life Insurance Policy

Life insurance means that a lump sum of money will be paid out to your nominated beneficiary upon death.  There are also extra benefits that come with a life insurance policy.

For example we will look through AIA’s PDS (Product Disclosure Statement), to look in depth at some of the benefits.

You can freeze your premiums if you are age 35 or older and you are paying your premiums on a stepped premium basis.

The Sum Insured on your benefit will automatically increase each year by the higher of the CPI increase or 5%. If you don’t want your cover to increase, please indicate on the application form.

If you are diagnosed with a terminal illness before your policy expires, we will pay you 100% of your life cover.

If you die before your policy expires we will make an advanced payment (subject to the table below) of your Sum Insured to your nominated beneficiary or the policy owner to assist them in dealing with immediate financial expenses. We will need to see a certified copy of the death certificate before we pay this benefit.

Financial Planning Reimbursement Benefit

If a claim is paid for death or terminal illness, we will reimburse your nominated beneficiary/ies or the policy owner the cost of obtaining advice from one or more financial planners. This advice must be in relation to how the claim proceeds should be managed or invested.

Guaranteed Future Insurability Benefit

If you experience a ‘personal event’ or a ‘business event’ before the age of 55 you are eligible for the Guaranteed Future Insurability benefit. This benefit allows you to apply for increases in your Life Cover Sum Insured and any Total and Permanent Disablement Sum Insured without supplying further evidence of health or insurability. A maximum number of increases apply.

As you can see there are many different extra benefits when you take out a life insurance policy.  Make sure that when you are purchasing a life insurance policy that you check that your policy will also come with similar extra benefits. 

It is best to speak to an experienced insurance adviser who will be able explain the extra benefits of your life insurance policy.

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