Life Insurance – for the unexpected

This advertorial has been written by our third-party product provider NobleOak Life Limited

FlexiCover Life Insurance.. for peace of mind when the unexpected happens

FlexiCover Life Insurance is a life insurance product issued by NobleOak who have a 145-year history of protecting Australians – and the product offers flexibility and real choice.

FlexiCover offers financial protection in the event you may experience serious illness, disability, or death, depending on the covers selected. Available to Australians and their families, obtaining a policy may help provide peace of mind if life takes a turn for the worse.

Annual Decreasing Cover

FlexiCover offers an optional Annual Decreasing Cover feature which can be selected for Life, TPD & Trauma covers (it is not available with Disability Income Insurance cover). If this option is chosen, the cover amount can decrease by a percentage you nominate, up to 10%, each year. For example, you may wish for your cover to reduce, as a financial commitment (such as your home loan balance) reduces over time. As premiums are adjusted accordingly, ultimately this can be a more affordable way to manage insurance premiums over the life of the policy.

However, as a policyholder you have other options. If the Annual Decreasing Cover feature is not selected, then the cover indexation feature increases the sum insured by 3% (or by the CPI, whichever is greater) at each anniversary to help your level of cover keep up with inflation. These increases stop at age 65 for Life and TPD Insurance, and at age 60 for Trauma Insurance. Your premium will automatically adjust to reflect the increase in cover. Please note that the cover indexation feature does not apply to Disability Income Insurance cover.

Finally, you can choose to fix your cover. If you want your Life, TPD and/or Trauma cover amounts to be truly fixed so they won’t change over time, then you can choose not to have the Decreasing Cover Feature apply to your cover amounts and you can ask us not to apply indexation to your cover.

Why is the annual decreasing cover feature important?

Some people with life insurance don’t realise that life insurance premiums generally increase every policy anniversary (yearly). This is because the stepped premium structure means premiums rise in line with the policyholder’s age; also, indexation increases in cover amounts will result in a higher premium as the cover level rises. This premium rise may cause various policyholders to rethink life insurance, especially if they cannot afford the increased premiums.

More about how the Annual Decreasing Cover feature works

If the Annual Decreasing Cover feature is selected:

• cover amounts to which the feature applies decrease every year by a percentage agreed by the policyholder, between 1% and 10%
• the first decrease takes place upon the policyholders’ first cover anniversary after they have requested the feature to apply
• premiums are adjusted to account for the agreed decrease in cover
• the annual CPI (indexation) increase to cover amounts does not apply, so premiums don’t rise as a result of indexation
• the age-related increase in premiums will still occur because of the stepped premium structure
• the feature is only available with Life, TPD or Trauma covers
• the Annual Decreasing Cover feature is not available with Income Protection cover

Other things to know about FlexiCover

• Life (death), Total and Permanent Disability (TPD), Trauma Insurance, and Income Protection covers are available within FlexiCover.
• One or more cover types can be chosen when you’re tailoring a policy.
• The insurance is fully underwritten following application, meaning there is less chance of surprises or delays at claim time. Claim proceeds are paid to you as the policyholder (or to the beneficiary, with life cover). So, whilst the proceeds can of course be used to help with your financial commitments such as outstanding loans, they can be used in any manner you (or the beneficiary) wish – they are not required to be paid to a lender, for example.