AMP Life Insurance

What does AMP Life Insurance cover?

• Three types of cover: AMP Life Insurance offers three types of cover to policyholders: Death Cover, TPD Cover and Trauma Cover. You can elect to include one or more of these cover types in your plan.
• Death Cover: This offers a lump sum payment to your beneficiaries if you die, or an advance payment if you are diagnosed as terminally ill. The benefit can be used to pay off the mortgage, settle other debts and help your family maintain their current lifestyle. An advance payment is also available to help your loved ones cover funeral costs and other immediate expenses.
• TPD Cover: This type of cover offers a lump sum payment if you become totally and permanently disabled. The benefit payment can be used to minimize the financial impact of your changed circumstances, help a family member take time off work to care for you and even fund home modifications.
• Trauma Cover: AMP trauma Cover offers a lump sum benefit if you suffer a specified trauma condition, or undergo a specified medical procedure, and survive at least 14 days. It can provide the necessary funds to make lifestyle changes following a serious illness or injury.
• 28-day money-back period: AMP Life Insurance provides a 28-day period after you receive your certificate of insurance during which you can change your mind about taking out cover. If you decide to cancel your plan during this period, your premium will be refunded in full.
• Worldwide cover: AMP Life Insurance provides cover 24 hours a day, seven days a week, all around the world.
• Guaranteed renewable: As long as you continue paying your premiums, AMP guarantees to continue offering cover, regardless of any changes to your health, occupation or pastimes.
• Cover limits: There is no limit to the amount of Death Cover you can apply for, while TPD Cover and Trauma Cover are limited to $5 million and $2 million respectively
• Plan ownership: There are several plan ownership options for AMP Life Insurance. The plan can be owned by an individual, two individuals or a company. In addition, if you want any benefit you receive to form part of your superannuation, you can select a superannuation trustee to own the plan.
• Choice of premiums: You can choose from stepped or level premiums to suit your budget and cover requirements.

Cover options available from AMP

Let’s take a closer look at each of AMP’s personal risk insurance products.

Life insurance

Depending on the level of cover you select, AMP Life Insurance will pay a lump sum benefit on the death of the insured. It will also pay a terminal illness benefit and an advanced funeral payment. Benefits include;

• Death benefit – a lump sum payment upon death between $100,000 and $1,000,000 (depending on your level of cover) plus automated annual increases
• Terminal illness benefit – a lump sum benefit payable if you are diagnosed as having less than 12 months to live
• Advanced funeral payment – a payment of up to $15,000 to meet funeral expenses when they fall due. 

Income Protection

AMP Income Protection Insurance will pay a monthly benefit of up to 75% of your regular income, if you are unable to work because of illness or injury. Waiting periods and benefit periods will depend on the type of plan you select (Basic, Standard, Advanced or SMSF) and benefits include;

• Total and partial disability - a waiting period applies before becoming eligible for a payment under these benefits, although you may be eligible for a payment under the Bedcare plan if you have the Advanced plan.
• Trauma – a benefit payable for a specified period, even if you can work. Only available for plans with a waiting period of 13 weeks or less.
• Death - 6 extra payments equal to the Total Disability benefit (to a maximum of $60,000) if you die while you are totally or partially disabled and receiving an income benefit.
• Rehabilitation costs – a rehabilitation benefit paid while you are totally disabled and waiting for or receiving an income benefit. Can be paid up to 3 months after you return to work.
• Overseas transport – a benefit paid in addition to an income benefit if you become totally disabled more than 100 kilometres from home.
• Return to work bonus – a benefit paid in addition to a partial disability benefit if you return to work for at least 30 hours a week, after 3 months participation in an approved occupational rehabilitation program.

TPD Insurance

AMP Total and Permanent Disability cover will pay a lump sum if you become disabled and are unable to ever work again. It can be used in any way you wish, such as to help with medical costs and living expenses. AMP’s TPD insurance can be purchased independently of life insurance or as an option attached to life insurance or trauma insurance. It includes benefits such as;

Trauma Cover

AMP’s Trauma cover pays a lump sum if you are diagnosed with a specified medical condition or serious injury, or if you undergo one of the medical procedures specified such as heart attack, major organ transplant, cancer or stroke. As with AMP’s TPD insurance, trauma insurance can be purchased independently or as an option attached to life insurance or trauma insurance. It includes the following benefits;

Additional options to consider

Extra-cost options available with Death Cover:

• Children’s trauma cover option. This option offers a lump sum benefit if an insured child suffers a specified medical condition or undergoes a specified operation.
• Waiver of premium option. If you select this option you will not have to pay the Life Insurance Plan premium if you become totally disabled before the plan anniversary following your 59^th birthday while you continue to remain totally disabled.
• Business safeguard option. This additional option allows you to apply to increase the sum insured without providing evidence of your health or pastimes. It is designed to act as a form of key person insurance and to help with business succession planning.

Extra-cost options available with TPD Cover:

• Children’s trauma cover option. See description above.
• Waiver of premium option. See description above.
• TPD Plus option. Available if your TPD Cover is linked to Death Cover, this option guarantees that the Death Cover insured amount is automatically restored to the amount it was before being reduced by the payment of a TPD benefit.
• Own occupation option. This option allows you to claim the TPD Cover insured amount if you satisfy the own occupation definition of total and permanent disability. It is only available to those who work in professional “white collar” and “light blue collar” occupations.
• Business safeguard option. See above description.

Extra-cost options available with Trauma Cover:

• Partial Package option. Available to those who have Trauma Cover of at least $40,000, this option provides benefits for a wide range of specified medical conditions and procedures.
• Optimum trauma reinstatement option. Available only if you have Trauma Cover Optimum in place, this option allows you to restore Trauma Cover following the payment of a benefit without having to provide evidence of your health, occupation or pastimes.

o Available as an additional option

Exclusions to be aware of

An AMP Life Insurance claim will not be paid if:

• You die or become terminally ill by your own hand within 13 months of taking out cover
• The claim is for an injury or illness that you were diagnosed with, had symptoms of or were treated for prior to the date cover started (unless you were not aware of the sickness or disability)
• Your claim results from an intentional or deliberate act by you
• It is for a condition or procedure that is not included in Trauma Cover until three months after the policy start date

How much will insurance from AMP cost me?

As with all personal risk insurance products, AMP’s premiums are determined by a large number of factors. These include;

• The benefit options you have chosen to include – additional options will add to the cost of your premium
• The benefit amounts you have chosen – raising your benefit limits on certain items will raise the overall cost of your policy
• The benefit period and waiting times you have chosen – opting for a longer benefit period or a shorter waiting time will affect the cost of your premium
• Your age – the older you are, the greater risk you are perceived to be to the insurer
• Your sex – males can be statistically more prone to certain conditions than females and vice versa
• Your smoking status – if you smoke, you will pay more for your insurance
• Your medical history – a history of medical problems will add to the cost of your premiums
• Your occupation - some occupations attract higher premiums due to the number of claims made
• Your general health – you may be required to have a medical examination in order to qualify for insurance and the results of this may influence the cost of your premiums.

Who is eligible for AMP Life Insurance?

The entry age for AMP Life Insurance Death Cover varies depending on the policy ownership structure and whether you select stepped or level premiums:

• Death Cover acquired outside of super, or through an SMSF or small APRA super fund: Entry age of 10 to 74 for stepped premiums, or 10 to 59 for level premiums.
• Death Cover acquired through the AMP Superannuation Savings Trust: Entry age of 10 to 64 for stepped premiums, or 10 to 59 for level premiums.

For TPD Cover, you’ll need to be between 15 and 59 years of age when you apply for a plan, while Trauma Cover is available to applicants from 13 to 59 years old.

Your ability to qualify for additional-cost options is also affected by your age when you apply for cover, so read the PDS for more information.

Some questions you might have about your AMP Insurance

Q: What is the difference between ‘any occupation’ and ‘own occupation’ in TPD cover?

• A: ‘Any occupation’ cover classifies you as totally and permanently disabled when you can no longer work in any occupation. ‘Own occupation’ cover classifies you as disabled when you can no longer work in your normal job, even though you might be able to work in another occupation. Own occupation cover is more expensive for this reason.

Q: If I am permanently disabled, why can’t I just rely on a government disability pension?

• A: It depends on whether you want to reduce your standard of living or would prefer enough income to live in the manner you are accustomed to.

Q: How much life insurance do I need?

• A: It depends on your situation and your wealth protection needs. If you have a mortgage that has a lot of years still to run or you need to provide for your childrens’ education, you may want to opt for a higher benefit amount. The best thing to do is to talk to a financial adviser.

Q: What if I take out insurance and then change my mind?

• A: Once you have received your policy, you have a cooling off period of 28 days. During this time, you may cancel your policy and receive a full refund of any monies paid. After this time however, no refund is possible.

Q: What is the difference between stepped and level premiums?

• A: Stepped premiums are adjusted every year at the renewal date according to your age (as you get older, your premiums increase). Level premiums stay the same for the term of the plan until you reach age 70, after which they will become stepped premiums.

Q: What is the difference between purchasing my insurance as a plan or as an option?

• A: When TPD and trauma insurance are purchased as plans, independent of a life insurance plan, the benefit under the life insurance plan is not reduced in the event of a claim. When they are purchased as options, the benefit of the plan and any other insurance options attached to it are reduced by the amount of the claim.

How do I make a claim for AMP insurance?

AMP Life Insurance prides itself on prompt payment of all genuine claims and the steps for making a claim are simple and straightforward.

• Make contact - lodge your claim online using the claims notification service and AMP will contact you the next business day or call 1300 366 214, 8am to 5pm weekdays.
• AMP will allocate you a dedicated claims assessor and send you forms to complete, sign and return, along with any additional supporting documentation you may be asked for (e.g. doctor’s certificate)
• Mail your completed claim form to AMP Claims, PO Box 14330 Melbourne VIC 8001, fax it on 03 8688 5795, or email to retail_claims@amp.com.au
• AMP will review your claim as quickly as possible and your claims assessor will notify you of the outcome
• If your claim is accepted, payment will be made either by cheque or direct banking transfer.

Are you looking to receive a quote for AMP Life Insurance?

If your in the market for a new policy and the features of the AMP policy look like a good fit for you, you can make a secure enquiry via the form located above. Once you have submitted your details, an insurance consultant will be in touch to provide you with a quote for cover and discuss the different options available. They can help you compare AMP against other policies in the market and explain any of the policy features you are not sure about. If after speaking with a adviser you are still interested in taking out cover, they can assist you with your policy application.

Receive a secure quote for AMP life insurance