Stand Alone Policies vs Linked Policies

When you purchase a TPD or trauma policy with life insurance, you need to select whether the TPD and/or trauma will be ‘linked’ or ‘stand alone’.

If you claim on stand alone TPD or trauma, the other insurances are not affected by the payout. On the other hand, if you claim on a linked policy, the other insurances will reduce.

For example, if you had $500,000 of life insurance and $300,000 of linked TPD and you made a TPD claim, the life insurance would reduce to $200,000. If the TPD were a standalone policy, the amount of life insurance would remain at $500,000.

If you select a linked policy the premiums are lower, where as the stand alone premiums are higher as you have the ability to claim and not have your other insurances affected.

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