AAMI Accidental Death Insurance Review
If you were to die suddenly, your death would no doubt be a devastating shock to your family and friends. However, once the initial shock wore off, the reality would set in, and those closest to you, who have come to rely on you, will begin to feel your absence the most severely. Of course there is little you can do to minimise the physical gap you’ll leave behind in the lives of your loved ones, however, you can at least make sure they won’t have to face any unnecessary financial losses after your death.
Your death could very easily disrupt the security of your family, because if they rely on you for an income or support, they may no longer be able to meet those obligations. For example, the mortgage repayments may fall behind, your partner may have to cut back on work hours – and therefore income – to manage more of the household tasks or family running around, and the day to day bills such as groceries, car loans and phone calls continue to add up as they always have, but without your regular income or support there to help.
Features of AAMI Accidental Death Insurance
Accidents happen in all of our lives, no matter how careful we are, or what sort of life we live. However, you can never know whether one of those accidents will lead to your death, so it is important to make sure that if the worst were to suddenly happen, you would know you’d done everything you could to protect your family from financial hardship.
AAMI Accidental Death Insurance cover offer the following features and benefits:
- Your choice of cover amount: You can apply for a minimum of $100,000 up to $500,000 of cover, depending on your family’s financial needs and situation. You can then increase your benefit amount by $100,000 increments. The benefit amount is for your cover only, because the AAMI Accidental Death Insurance policy is a single life policy, which means you are the only insured person.
- Accidental Death Benefit: The benefit amount of your policy is paid as a lump sum amount to your beneficiaries if you die as the result of an accident, or is paid to your estate if you have not nominated beneficiaries. This benefit will be payable if your death occurs within 365 days from the day the accident occurring.
- Automatic Indexation Benefit: AAMI will automatically increase your benefit amount each year by the indexation factor or 5% to keep up with inflation. This means that no matter when your family makes a claim on your policy, the benefit amount is relevant to the costs of the day, because we all know that even the basics cost more and more each year. AAMI will simply recalculate your premium each year to reflect the indexation factor.
- Complimentary cover on the 13th month: If you have paid your first 12 months of premiums in full, you won’t have to pay for your 13th month of cover. This means that if you pay your premiums monthly after your first year of holding the policy, your account won’t be debited on the 13th month. If you continue to pay your premiums annually, your account will show a reduced annual premium amount.
- Financial Planning Benefit: When you have held your policy for three consecutive years, AAMI will upgrade your cover to include the financial planning benefit for your family. This means that when a claim is made, AAMI will reimburse up to $2,000 of financial planning services costs from a licensed financial planner, paid within 12 months of a claim for accidental death. This allows your family to seek professional advice to manage and invest the benefit amount, so they truly remain looked after into the future.
- Premium guarantee: AAMI will guarantee that your premiums will not change for the first 12 months after your policy begins. After the first 12 months your premiums will increase according to your age, and if you have chosen the automatic indexation benefit.
- Policy discounts: You are eligible for a discount on your AAMI Accidental Death Insurance cover when you nominate a large benefit amount. For example, if you have chosen a benefit of $200,000 you can receive a 10% discount, if you have a $300,000 to $400,000 benefit you can receive a 20% discount, and for $500,000 of cover you can receive a $30 discount. Or, if a family member purchases an accidental death insurance policy from AAMI too, you will both receive a 10% discount.
- Guaranteed renewal: Once your application has been approved by AAMI, your policy is guaranteed to be renewed each year until you are 80 years old. This means that even as you get older and your circumstances change, you remain protected.
Applying for AAMI Accidental Death Insurance Plan
You can apply for accidental death cover if you are 18 to 75 years old, and an Australian citizen or permanent resident. You then remain covered 24 hours a day, seven days a week.
You also have a 30-day cooling off period from the commencement date of your policy. This means, should you change your mind or your policy no longer suits your needs, you can cancel your cover within this period and any premiums paid to date will be fully refundable, provided no claim has been made.