FAQ

Q. What does Indexation of benefits mean?

The initial sum insured may be eaten into by inflation as time passes. Automatic indexation of sum insured i.e. the policy amount increases every year with inflation. for e.g. if you take a Life Insurance Policy now for $200,000; in 10 years the benefit amount would increase approximately to $325,700; at the age of 65, your Life Insurance Benefit would be worth around $746,600 (projection based on an indexation rate of 5% per annum)

Q. What is the difference between Stepped v/s Level Premiums?

Stepped premiums increase each policy anniversary (year) based on the life insured's age, Policy Fee and indexed Benefit amount at that time. This means that the younger you are the cheaper the cost of premiums; but premiums tend to increase at a faster pace as you progress beyond age 45.

Level premiums increases each policy anniversary (year) based on Policy Fee and indexed Benefit amount at that time; which means premiums remain fairly constant up to the age of 65. Level premiums are generally more expensive in the beginning, because you are paying higher to lock in a rate, but over the long term they are significantly cheaper than stepped premiums.

Q. Stepped or Level, which is best?

It all depends on your situation and how long you plan to hold your insurance policy for. If you need life insurance for a longer time, level premiums may be better. If you only need your policy for a short period of time, stepped premiums may be better. But you should also consider what you can afford, and the type of cover offered.

Q. When does Exclusions & loading apply to a Policy?

If there is an increased risk due to medical history, a dangerous job or past time, Insurance companies will in some cases place a loading or an exclusion on a policy

Q. Do I need to have a medical examination before taking out an insurance policy?

You may need to have a medical examination or blood tests before taking out a policy, but this will depend on which cover you choose, and a range of factors such as your age and smoking status. In
most cases, the life insurance company will pay for any medical requirements.

Q. I am a smoker. Will that affect my premiums?

If you are a smoker, you should expect to pay a little more for your life insurance than a non-smoker of a similar age and health.

Of course, if you also have a smoking-related medical condition, then the life insurance company would take that into consideration when deciding whether to sell you life insurance and what rate you should be charged.

Q. What can Income Protection do that Workers Compensation can't?

The main point of difference between Workers Compensation and Income Protection is that Workers Comp will only cover you if you suffer an injury or illness at work. Income Protection will cover you regardless of the where or when the incident occurs. (Be sure you know your individual Policy so you are aware if there are any limitations to your Income Protection cover).

Q. Am I locked into the cover for a certain period?

No. The policy that you establish can be cancelled at any time without any penalties.

Q. Can the Policy be Cancelled?

Yes but only by the person that is insured. The life insurance company cannot cancel the policy due to a change in your health.