Special conditions are specific conditions that need to be met to be eligible for cover. An example of a special condition could be a provision added to your policy related to a high-risk activity. For instance, if you regularly engage in skydiving, an insurance company may include a special condition, that no benefit will be payable, if a claim was due to a skydiving activity.
Stepped Premium amounts are based on your age each year. This means the cost usually increases every year in steps at each policy anniversary because there is a higher chance of you making a claim as you get older.
Cost can also increase overtime. While this is not an exhaustive list, here are some examples of why your policy might cost more over time:
• Premium rates are variable; they can increase due to market conditions such as higher than expected claims.
• If a premium discount ends after a set period.
• If the amount you are insured for automatically increases each year in line with inflation, your premium naturally goes up each year to reflect the cost of the extra cover and age at time of increase.
• If your policy starts with level premiums and switches to stepped premiums at a specified time or vice versa.
Sum Insured is the amount you are insured for under the terms and conditions of your policy.
Term Life Insurance (Death Cover)
Also called death cover, term life insurance provides a lump sum payment to your or your beneficiary/s if you’re diagnosed with a terminal illness or pass away. This allows you and your loved ones to cover any medical and funeral costs and settle any debts after you’re gone.
Terminal Illnes Benefit
A feature of Life Insurance policies, if you are diagnosed with a terminal illness and have less than 12 months to live you can claim on your Life Insurance policy
Total and Permanent Disability Insurance (TPD)
Insurance that pays a lump sum amount in the event that you become totally and permanently disabled and cannot return to work again.
Trauma insurance (or Critical illness insurance) provides you with a lump sum if you’re diagnosed with a defined critical illness like cancer or a stroke and meet the required level of severity of the diagnosed illness set out in the policy terms. It provides financial support to help cover medical costs, rehabilitation, and everyday living expenses.