Receive up to $1,000,000 in Life Cover with AAMI
AAMI life cover provides a lump-sum benefit of up to $1,000,000 in the event of death or terminal illness. The policy comes with a range of additional benefits to ensure adequate cover is in place to support your family if you were to pass away. Cover can be applied for over the phone with no medical exams required.
This review will outline what is and isn't covered and who can apply for cover.
What does the policy cover?
The AAMI life insurance policy offers generous cover which includes:
- Accidental death cover: AAMI will protect you with accidental death cover for the time between your application being submitted and the time your cover is approved. This means that if you die as the result of an accident while your application is being processed, AAMI will pay your estate the benefit amount for which you have applied. This cover is limited to the shortest of 14 days from the date of your application, from the date your application is accepted or the date it is declined, or when you are advised by AAMI that your limited cover is cancelled.
- A cooling off period: You have 30 days from the time your policy is approved, to decide whether or not to continue with your cover. This means that if you change your mind about having AAMI life insurance within 30 days, you can cancel your policy and receive a full refund of any premiums you’ve paid as long as you haven’t made a claim.
- Single life cover up to $1 million: The AAMI life insurance policy is a single life policy only, so you will be the only person covered under the policy. You can choose a benefit amount from $100,000 up to $1 million and can increase your cover amount by $100,000 increments between these limits.
- Death benefit: If you die while covered by the AAMI life insurance policy, your beneficiaries or your estate will receive a lump sum benefit amount. This means they can use the money for whatever they need to, whether that is immediate funeral or final medical expenses, to pay off the mortgage, to cover household bills or make investments for the future.
- Terminal illness benefit: You can also make a claim on your AAMI life insurance if you are diagnosed with a terminal illness, by a registered doctor. You will receive an advance on your death benefit in this instance, to help you manage your final affairs.
- Funeral advancement benefit: AAMI will also advance your beneficiaries up to $10,000 of your death benefit in the event of a claim on your life insurance, to help with immediate costs such as the funeral expenses. The funeral advancement benefit is paid to your nominated beneficiary and is usually made within 24 hours of receiving a death certificate and completed claim form. This amount is an advancement of your death benefit, so when the full death benefit amount is paid, it is less the amount already paid as an advance.
- Lifestyle increase benefit: As your circumstances are likely to regularly be changing and advancing, AAMI offers you the opportunity to increase your benefit amount by $100,000 each year. You don’t have to provide any additional information or take any medical tests and you are under 60 years old. This benefit can be useful when you get married, have a child, have a child starting school or you buy a home, as it means you don’t need to remember to reassess your insurance needs all the time, and you’ll always have enough life insurance for your changing needs.
- Premium pause: If you are unable to pay your life insurance premiums because of financial hardship, AAMI can pause your repayments for up to three months over the life of the policy. To activate this feature, you must have paid your premiums for the previous 12 consecutive months and have no premiums outstanding at the time of your request for a pause. While your premiums are paused, you will remain covered in case of accidental death only, and as soon as you start paying your premiums again you will be back under the full cover of your policy.
- Premium freeze: You can also ask that AAMI freeze the amount of your premiums so that they don’t increase each year. This can help with your budgeting and financial management of your life insurance, but it will mean that your benefit amount decreases each year.
- Automatic indexation of your benefit: Alternatively, you can choose to have your benefit amount increase each year – and in turn increase your premiums each year. However, by increasing your benefit amount each year by 5% AAMI ensures that your death benefit remains relevant and valuable to the costs at the time of the claim.
AAMI Life Cover exclusions to be aware of
- You will not receive an AAMI Life Insurance benefit if the event giving rise to the claim is a result of an intentional self-inflicted act within 13 months of the policy commencing or being reinstated, or during the period of interim Accidental Death Cover.
- Also, if you decide to increase your sum insured, the 13-month exclusion on intentional self-inflicted acts will apply to the increased portion of your cover.
Who can apply?
You can apply for life insurance with AAMI if you are 18 to 60 years old and an Australian citizen or permanent resident. Your application will be assessed on the answers you give to health, lifestyle and occupation questions, however, you won’t have to take a medical test or blood test to apply. Instead, the information in your application will be used to assess your risk levels and the level of cover AAMI can approve for you.