9 Defining Features of the Best Life Cover Insurance Policies
July 26, 2022

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Best Life Cover Features

Life Cover insurance isn’t something to be taken lightly or purchased on an impulse. To get the right insurance policy for you, you’ll want to shop around and compare premiums, final cover, and additional features.

There are a lot of Life Cover policies out there and each one is different. They all have extras and special features to set themselves apart from the herd. But inherent in all the best insurance policies are a number of qualities you may want to make sure are included in your Life Cover policy.

life cover features

To distinguish the best Life Cover policies from the pack, keep an eye out for these features:

1.     A terminal illness benefit

If you’re diagnosed with a terminal illness and have less than 12 months to live, you don’t want money to be a concern in those final months. A terminal illness benefit guarantees a lump sum payout after you get the doctor’s diagnosis.

2.     An advanced payment

It’s hard enough having to arrange a loved one’s funeral. You don’t want to be fussing over details to limit expenses. An advanced payment benefit provides you or your family with extra financial assistance of up to $30,000 paid immediately upon death to help with urgent costs.

3.     The option to increase cover

Sometimes called future insurability, this option would allow you to increase your benefits without a medical certificate. The option gives you more flexibility to adapt to changing circumstances, such as marriage or divorce, having children, or losing a spouse through death.

4.     An accommodation benefit

You want a plan that will cover the unexpected. An accommodation benefit will provide you a certain amount per day if you have to stay over 100 kms from your home or if a family member must relocate to take care of you.

5.     Automatic inflation increases

Just as there’s inflation, so too should your cover go up in line with the current Consumer Price Index. This is often called automatic indexation. It’s good to keep in mind that since your benefits increase, the premium also rises.

6.     A cooling off period

Your circumstances change, so it’s worthwhile looking for an insurance policy that recognizes that. AIA Australia, for example, provides a 28 day cooling off period so that you’re protected if you change your mind.

7.     The ability to waive premiums

You may want to look out for something in your insurance policy that states the possibility of waiving the premium if you are totally disabled and unable to work. This option may also come in handy if you become unemployed, experience financial hardship, or begin maternity/paternity or long term leave.

8.     A financial planning benefit

Once you’re gone, your family may need assistance with developing a financial plan. A financial planning benefit pays you or your family a certain amount towards a plan should your family need one.

9.     A chance to include child death cover

Child death cover lets you add your kids to the policy so that they’re insured against death and some trauma events.

Since we’re all unique our Life Insurance should be tailored to our individual needs. The best policy needs flexibility and durability to cope with your changing circumstances and your family’s needs. Don’t let your family be burdened by debt; protect them with the right policy that will help provide financial assistance when you’re no longer around.

And if you want to know more, download our FREE eBook helping your unravel the complexities of Life Insurance.


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