Premium Cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to earn your regular income. The monthly benefit is designed to relieve you of the financial responsibility of paying your policy premium during treatment and recovery. This is particularly useful when combining all your benefits under one policy with your spouse. A lot of the time, when people are unable to work due to sickness or illness, the budget gets tight because household income reduces, so under Premium Cover, your insurance cover can remain in force without you having to pay any premiums.
In essence, if you are unable to work then all of your premiums under the TOTAL policy are paid for by the insurer until you are able to return to work.
Your choice of waiting periods and cover terms
Premium Cover provides you with the flexibility to structure your plan to most closely suit your needs. You have a choice of six waiting periods, the period of time before your monthly benefit begins after becoming disabled; either 4, 8, 13, 26, 52, or 104 weeks. You also have a choice of two cover terms, either to age 65 or 70). I will assist you to understand the implications of these options to enable you to make the best choice for your personal circumstances.
Waiver of waiting period
If you suffer a recurrence of a previous disability or a new disability within twelve months of ending a claim under Premium Cover, the chosen waiting period will be waived for the second disability. This is done to reflect the fact that you have most likely exhausted your available sick leave and annual leave entitlements during the previous waiting period.
Refund of waiting period
If you qualify for a claim under your Premium Cover benefit, once the specified waiting period has ended, any premiums you have paid during this period will be refunded to you.
Optional reduction in waiting period benefit
You have the option to purchase the reduction in waiting period benefit which allows you to reduce your waiting period without further health assessment any time there are relevant changes in your personal circumstances (certain exclusions apply).
The above benefits are summary examples only and may not be a full list of benefits which may be available to you. The exact types of cover and benefits will change depending on the insurer and the specific policy. Please contact us for more information.