What is Premium Cover?
Premium Cover is an insurance that pays your total insurance premiums if you are disabled and unable to work.
Why do you need Premium Cover?
If you were to become totally disabled and unable to earn an income, then your financial priorities would change. If you have the right insurance in place you shouldn't have to tighten your purse strings too much. Premium Cover assists you by paying for the cost of your policy for the entire time you are on claim, meaning you have one less thing to budget for!
How does it work?
Premium Cover is an integral part of Income Cover and Mortgage Repayment Cover but it's just as important to have alongside all of our other Assurance Extra Covers such as:
- Life Cover and Life Income Cover
- Trauma Cover
- Complete Disablement Cover
Regardless of the covers you choose, Premium Cover will pay your premium should you become totally disabled, or be made redundant or bankrupt.
What's not covered?
- Intentional self-inflicted harm including attempted suicide
- Participating in a criminal activity
- Pregnancy or complications thereof lasting less than 90 days after the end of the pregnancy
- Failure to comply with the advice and treatment recommended by the attending treatment provider
- Payments resulting of an increase in cover under your policy during the period of any claim
Benefit details
Premium Cover provides several benefits that are built-in to the cover.
Built-in benefits
Premium Cover provides several benefits that are built-in to your cover including:
Total Disability Benefit
What is it?
Your insurance premium will be paid if you become totally disabled.
How it works:
If you become totally disabled, your total premium will be paid until either you are no longer disabled, or your policy has reached the end of its cover term (whichever occurs first). The total premium includes premiums for other people covered on your policy, even if they are not disabled.
Why it's important:
Relieves you and your family of the financial responsibility of paying your premium during your treatment and recovery.
Partial Disability Benefit
What is it?
Your premiums will be paid if you return to work on a part-time basis. Not available for occupation class 5.
How it works:
If you have been totally disabled for at least 7 consecutive days but return to work at a reduced capacity, Premium Cover will still pay the full policy premium. Your income has to be 75% or less of your pre-disability income.
Why it's important:
Ensures that your policy remains in force in the event you can't return to work full time due to disability.
Bankruptcy and Redundancy Benefit
What is it?
Your premiums will be paid if you are made redundant or bankrupt.
How it works:
Your premiums will be paid if you are made redundant or bankrupt and remain so for at least the waiting period. Premiums will be paid for a maximum of 6 months or until you return to work (whichever occurs first).
Why it's important:
Ensures that your policy remains in force in the event you lose your job or are made bankrupt.
Bereavement Loyalty Benefit
What is it?
If you were to die, your spouse or children covered will have their premiums paid for 2 years.
How it works:
If you were to die, and your spouse or children are covered on your policy, we will continue to provide cover for them, without requiring further premiums for 2 years from the date of your death. Surviving children will have their premiums paid for 2 years or until they reach the age of 21 (whichever occurs first). This benefit is only available after 3 years of continuous cover.
Why it's important:
Reassurance that if the worst was to happen, your family will still be covered after you've gone.
Recurrent Disability Benefit
What is it?
Waiver of your waiting period if your disability recurs within 6 months of going off claim.
How it works:
If you suffer a recurrence of a disability within 6 months of the end of a claim for the same illness or injury, the waiting period will be waived for the new claim. The recurrent claim will be considered as a continuation of the original claim.
Why it's important:
If you suffer a recurrence of the same disability you are not unfairly penalised by having to wait out the period again.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
