Frequently Asked Questions

What's the difference between stand-alone life insurance policies vs linked policies

If you've done a bit of research into the options available for life insurance, you would have seen that TPD and trauma policies are available as linked or stand-alone policies. When you get a quote, you will find that one option is more expensive than the other, but why is this?

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. Stand-alone premiums are higher because you have the ability to claim and not have your other insurances affected.

Want to learn more?

Just call us on 13 54 33, we’re here for you.

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