Bank of Melbourne BT Protection Plans

Why Choose Bank of Melbourne?

Bank of Melbourne is a Victorian financial institution that provides quality banking and insurance solutions tailored to meet the needs of a range of different customers. With headquarters in the centre of Melbourne and staffed only with the locals, it has the wealth of knowledge of the local neighbourhood.

Insurance solutions from Bank of Melbourne are tailored to suit the way you live. Bank of Melbourne works together with BT Life Insurance to offer an impressive line of protection plans to safeguard you from life’s uncertainties, such as illness, injury or death. Payments from Bank of Melbourne protection plans can be used to cover any of your financial commitments, such as paying off your debts (mortgage, loans, etc.), day-to-day expenses and your children’s school fees.

Equipped with an experienced team dedicated to providing superior customer service, you can rest assured that you and your loved ones will be taken care of by Bank of Melbourne, should anything happen to you.

Bank of Melbourne BT Protection Plans Details

There are four types of protection insurance plans that are offered by Bank of Melbourne through BT and they include:

  • Term Life Insurance: will provide a lump sum benefit should you die or be diagnosed with a terminal illness and you have less than 12 months to live.
  • Living Insurance: protects you in the event of a life-threatening medical event, such as cancer, heart attack or loss of a limbs. The benefit payment you receive can be used for medical and rehabilitation expenses.
  • TPD Insurance: If you are unable to work again or perform any household duties again as a result of a permanent disability, TPD insurance from Bank of Melbourne can provide you with the financial assistance that is required to make any necessary adjustment.
  • Income Protection Insurance: provides a replacement income should you be unable to work in your normal capacity as a result of an illness or injury. You can receive up to 80% of your average monthly income to sustain your lifestyle while you have to take time off work to recover.
  • Business Overheads: protects business owners in the event of an illness or injury and they are unable to work in full capacity. The monthly benefit you receive will cover your business expenses to allow your business to continue operating.

Additional Benefits Available through Bank of Melbourne’s BT Protection Plans

  • Needlestick Benefit: Offered only to medical professionals, a lump benefit will be payable if you contract HIV or Hepatitis B or C while performing your duties.
  • Children’s Benefit: If your children suffers from a specific medical condition (as listed in the policy), a benefit amount will be paid so that you have the funds to pay for expensive medical treatments or if you need to take time off to care for your child.

Ownership Options for Your Protection Plans through Bank of Melbourne

Bank of Melbourne BT Protection Plans are flexible - you get to choose the structure of your protection plans ownership the way you see fit. There are four types of ownership options that you can choose from:

  • Self-managed superannuation funds (SMSF);
  • SuperWrap (personal super plans from BT);
  • Non-superannuation ownership (by an individual, company or trust);
  • Term life as superannuation

Key Features and Benefits of BT Protection Plans from Bank of Melbourne

Term Life and Term Life as Superannuation

With term life cover from Bank of Melbourne through BT, there is no limit on the death benefit amount that you can apply for, allowing greater coverage for you and your financial dependants. Some of the built-in features and benefits of Bank of Melbourne’s BT term life insurance include:

  • Death Benefit: Your insured benefit amount will be payable in the event of your death
  • Terminal Illness Benefit: If you have been diagnosed with a terminal illness, you will receive your full death benefit amount.
  • Funeral Advancement Benefit: 10% of the total death benefit amount, or up to a maximum of $25,000, will be paid in advance to meet any immediate costs of arranging a funeral.

You can also include the following options for an additional cost:

  • Business Cover Benefit: When your policy is taken out for business purposes, this option allows you to increase your cover without having to provide further medical underwriting.
  • TPD Benefit: You can include TPD cover in your term life policy which will provide financial assistance should you be permanently disabled and unable to work again.
  • Living Benefit: Also available to add onto your term life cover, this benefit will be payable if you suffer from a specific medical condition listed in your policy.
Living Insurance (Standalone)

You can apply for a living insurance benefit amount of up to $2 million and you have the option to add this cover onto your existing term life policy, or as a standalone policy. Some of the features and benefits that BT living insurance offer include:

  • Living Benefit: If you suffer from a specified medical event and you continue to live for the following 14 days, the insured benefit amount will be payable. Some of the specified medical events are as the following (and are not limited to):
    • Cancer
    • Stroke
    • Advanced diabetes
    • Heart disorders; heart attack, angioplasty (triple vessel), coronary artery bypass surgery, angioplasty
    • Nervous system disorders; alzheimer’s disease, dementia, motor neurone disease, multiple sclerosis, parkinson’s disease
    • Accidents; coma, major head trauma, severe burns, paralysis
    • Body organ disorders; chronic liver disease, chronic lung disease, kidney failure, major organ transplant
    • Blood disorders; aplastic anaemia, medically or occupationally acquired HIV
  • Advancement Benefit: A partial benefit will be payable for some medical events, such as angioplasty (single or double vessel), diabetes complication, early stage melanoma, or prostate cancer.
  • Living Insurance Death Benefit: If you suffer from one of the specified medical event but does not live beyond the 14 day waiting period, a benefit of $10,000 will be payable.

Optional benefits that are available with BT living insurance for an additional cost:

  • Living Benefit Plus: With this benefit, you have access to greater protection against specific medical conditions that are not covered with the Living Benefit. Provided that you live past the 14 days waiting period, your insured benefit amount will be payable.
  • Living Reinstatement: If you suffered from a specified medical event and a benefit amount was payable, you have the option to reinstate the Living Benefit 12 months after the first claim.
Total and Permanent Disability Insurance (Standalone)

Similar to living insurance, you can include a TPD cover onto your existing term life policy or have it as a standalone plan. You can apply up to $5 million in TPD benefit amount. Features and benefits that you can obtain through BT TPD insurance include (but not limited to):

  • Four choices of TPD definitions;
    • Any occupation: You are unlikely to work in any occupation of which you are reasonably suited to by education, training, or experience ever again.
    • Own occupation: You are unlikely to work in your primary occupation, prior to the event of a claim, of which you are suited to by education, training or experience ever again.
    • Home duties: Designed specifically to cover homemakers in the event that you are unlikely to perform any normal household duties ever again.
    • General cover: You are suffering from a loss of independent existence, or total and permanent loss of use of two limbs, a limb, sight in one eye, or complete loss of sight.
  • TPD Benefit: A benefit amount will be payable in the event that you are totally and permanently disabled, provided that you successfully meet the full definition that you have nominated for your policy.
  • TPD Death Benefit: If you die and no TPD benefit has been paid, a benefit amount of $10,000 will be payable.
Income Protection Insurance and Business Overheads

With income products from Bank of Melbourne through BT insurance, you can meet your financial obligations should you fall ill or be injured and you are unable to work for a specified amount of time as the benefits can be used as an income replacement. With business overheads cover, you can meet your business expenses if you are a business owner.

There are two types of income cover available from BT; income protection and income protection plus. Some of the key features of income protection cover from BT include (but not limited to):

  • Three choices of income definitions;
    • Own occupation: You are unable to work in your usual occupation in a normal capacity.
    • Home duties: You are unable to perform any normal household duties in your usual capacity.
    • General cover: You are suffering from a significant cognitive impairment or unable to perform any two activities of daily living, such as bathing, dressing, eating, toileting and walking.
  • Total Disability Benefit: You will receive a monthly benefit if you are suffering from a temporary disability as a result of an illness or injury after the waiting period has passed.
  • Partial Disability Benefit: Monthly benefits will be paid if you are earning less or only able to perform lesser number of duties as a result of an illness or injury.
  • Elective Surgery Benefit: A monthly benefit will be payable if you are totally or partially disabled due to a transplant or cosmetic surgery.
  • Rehabilitation Expense Benefit: provides a benefit to cover any rehabilitation expenses incurred while you are totally disabled.
  • Recurrent Disability Benefit: If you suffer from the similar illness or injury that triggered the first claim upon returning to work, you will be entitled to your benefit payments without any waiting period imposed.
  • Death Benefit: will be payable if you die while you are entitled to your monthly payments.

With income protection plus cover, you will have access to the benefits available from the standard policy and including the following benefits:

  • Nursing Care Benefit: If you are confined to bed for more than 3 consecutive days during the waiting period, this benefit will be paid.
  • Crisis Benefit: will be payable for 6 months if you suffer from a specified medical event, whether or not you are able to return to work.
  • Transport Benefit (within Australia or from overseas): If you become totally disabled whilst overseas or within Australia, you will receive a benefit payment to fund the transport.
  • Accommodation Benefit: If you have a family member who has to travel from their usual place of residence to care for you, Bank of Melbourne will cover their accommodation costs.
  • Family Care Benefit: If a member of your family has to take time off work to care for you, a monthly benefit will be paid to cover the lost income.
  • Waiver of Premium Benefit: While you are receiving your total disability monthly benefits, the premiums you pay during the waiting period will be refunded.

Note that the features and benefits mentioned above apply for income protection plans under own occupation definition. Home duties and general cover definition will have a slight variation in terms of features and benefits that are available.

Features and benefit that are available through business overheads insurance include:

  • Total Disability Benefit
  • Partial Disability Benefit
  • Elective Surgery Benefit
  • Recurrent Disability Benefit
  • Death Benefit

To find out more of these features, please refer to the Product Disclosure Statement (PDS).

Built-in Features with All Bank of Melbourne BT Protection Plans
  • Interim Accident and Sickness Cover: When your application for Bank of Melbourne life insurance policy is received, you will be automatically covered with accident and sickness cover while your application is being processed.
  • Guaranteed renewable: Your policy will continue to be renewed regardless of any changes in your occupation, health or pastimes, provided that you pay your premiums on time.
  • Future Insurability Benefit: You will be able to increase the amount of cover insured on your policy without needing to provide further medical evidence.
  • Loyalty Benefit: You will be eligible for additional benefits without any additional charge if you hold your policy for 3 years or more.
  • Discounts: If you hold more than one Bank of Melbourne BT Protection Plan, you will receive a premium discount of 5%.
  • Premium Holiday: if your situation has changed due to financial hardship and you are not able to keep up with the premiums payments, you have the option to suspend your policy.
  • Worldwide cover: You will have access to full coverage 24 hours 7 days a week, no matter where you are in the world.

How can I Apply for Bank of Melbourne BT Protection Plans?

To apply for Bank of Melbourne BT Protection Plans, you will need to be an Australian resident and satisfy the age criteria from the table below. It is important to note that depending on your choice of premium structure, stepped or level premiums, the eligible ages will differ.

BT Protection Plans
Age Criteria
Term life
  • 15 to 69 (Stepped premiums)
  • 15 to 59 (Level until age 65 premiums)
  • 15 to 49 (Level until age 55 premiums)
Living insuranceTotal and permanent disability insurance
  • 15 to 59 (Stepped and Level until age 65 premiums)
  • 15 to 49 (Level until age 55 premiums)
Income Protection
  • 17 to 59 (Stepped and Level until age 65 premium)
  • 17 to 49 (Level 55 premium)
Business Overheads
  • 17 to 59

Stepped premiums start off low when you apply for cover at a young age and the premiums will increase over the term of the policy.

Level premiums, on the other hand, do not change with age. The premiums you pay are calculated on average over the duration of your policy. This means that your premiums may be quite high at the start of the policy depending on your financial situation at the time; however, in the later stages of life, as your career progresses, your premiums will become more affordable.

Applying for Cover is Easy with Bank of Melbourne BT Protection Plans

With BT Protection Plans available from Bank of Melbourne, you and your family will be covered only with the highest quality life insurance plans available in the Australian market. It is essential to speak to an insurance specialist if you require additional help in deciding which protection plans are most suited to your needs and situation.

William Eve

Will is a personal finance writer for specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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