Stepped And Level Premiums
Stepped premium your premiums will increase each year based on the rates applicable for your age at that time. So as you get older the premiums will increase based on your age.
Level premium your premiums, excluding the management fee, will be based on the age that you commenced the cover, your premium will not increase with age. If you increase your cover in the future, it will be based on the premiums for the increased amount for your age at that time. On the Policy Anniversary preceding your 65th birthday premiums revert to the stepped premium rates.
CPI is applied to both stepped and level premiums and sums insured on an annual basis at policy renewal.
Agreed and Indemnity Policies
Agreed policies are when you need to prove your income at the time of application. This is based on you income at that time and is especially beneficial where fluctuations in income occur from year to year. It means that if you are making a total disability claim you have already proven you income.
An indemnity policy is where proof of income is required at the time of a claim. Should your income at the time of claim be lower than at the commencement of your policy you would then only get paid a maximum of 75% of your income at that time. While there is a reduction in premium for indemnity policies, it can adversely affect the level of benefit that you receive.
Some companies will endorse the policy document of an agreed policy.
Buyback
This is where you have the ability to re purchase the amount of cover that was paid out to you for either a TPD or Trauma payout. With most policies if you have a TPD or Trauma payout then the Term amount is generally reduced by the amount claimed. The buyback allows you to get back the life cover that was reduced, generally after around 12 months. This is important because if you make a Trauma or TPD claim you will probably not be eligible for life cover anywhere or at least for a number of years.
Needle Stick Injury
Available to medical professionals including Doctors, Dentists and nurses
Where a lump sum is paid should you become infected with HIV, Hep B or C as a result of an accident during the course of your normal occupation prior to the age of 65.
Child Trauma
This is cover for dependant children attached to the parents Trauma policy. The child policy would pay on:
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