How is Cover for Life different from traditional Life Cover? Cover for Life is not a replacement for standard Life Cover – it’s an additional way to strengthen your financial plan. Traditional Life cover is designed for peak financial years when your financial responsibilities are the highest and you’re paying a mortgage, raising children, or replacing income. In traditional life cover, you pay premiums for the life of the policy for it to remain active, and premiums generally start lower and increase the older you get. Cover for Life is different because it’s designed to last your entire lifetime, offering level premiums for a fixed premium payment term, after which premiums stop but cover continues, Cover for Life helps you to leave a legacy or support end of life costs Here are some key differences when considering which life cover is right for you.
Life Cover can be useful for:
Cover for Life can be useful for:
Covering end-of-life expenses, such as a funeral
Covering a mortgage
Supporting children and dependants who rely on your income
Leaving an inheritance to your loved ones
Supporting a partner or dependants later in life
Covering day-to-day living costs for your loved ones
Estate or legacy planning
How Life Cover and Cover for Life can work together
Emma, 40, is a parent with a $400,000 mortgage and young children.
She chooses: $500,000 Life Cover, to give her family strong financial protection during the years they rely on her income the most. This type of cover is designed to help her family cover big expenses, like paying off the mortgage, school fees and everyday living, if she were to pass away while still paying for these. She will need to pay premiums for the life of the policy for it to remain in force, however premiums commonly increase over time as she ages and her financial debt decreases. After speaking to her insurance adviser, Emma also takes out a smaller $100,000 Cover for Life policy. She chooses a premium payment term to age 65. This means her premiums will remain the same from age 40 to age 65, after which she will stop paying Cover for Life premiums entirely. The cover itself will remain in force for the rest of her life and will payout $100,000 when she dies. The money may be used to help with her funeral costs or leaving a financial legacy behind for her family. Together, these two types of cover give Emma different protection: Life Cover gives a more affordable option now whilst she has big expenses to cover, and with Cover for Life – a guaranteed lump sum support for her family in the future.
Did you know? We plant a native tree in memory of our life insurance customers who have passed away via our partnership with Trees That Count. Since 2022, we have planted 9,932 trees .
Life Insurance
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