AMP life insurance review

AMP is one of the largest wealth management companies in Australia. Their range of personal risk insurance products includes life insurance, total and permanent disability (TPD) cover, income protection and trauma cover and in 2015 alone, they paid out over $944.7 million in claims.

Awarded Life Company of the Year and Best Trauma Policy in the 2015 Financial Review Smart Investor Blue Ribbon Awards, AMP Life Insurance is known for its proactive, fair and transparent approach to assessing claims. Their life insurance products include AMP Life Insurance, Flexible Lifetime and AMP Elevate.

• A quick summary of AMP Life Insurance
• Pros and Cons
• Recent awards
• Who this is and isn't for

What does AMP life insurance cover?

The AMP life insurance policy covers the death of an insured person with a monetary payout. The payout will occur at the time of the claim and AMP will send the money to the beneficiary of the plan. AMP life insurance also has a terminal illness benefit where they will pay the claim amount if you have been diagnosed with a terminal illness. The payout for death or terminal illness can range from $100,000 to $1,000,000 depending on the level of coverage.

Other features of AMP life insurance include the following:

Conditions for benefit payment

AMP will pay a claim in the event of death or terminal illness. In the event of death, AMP will pay the claim payment to your nominated beneficiary. If AMP cannot locate your beneficiary, they will pay the claim to the administrator of your estate.

If you make a claim as a result of a terminal illness, you will receive the claim amount and the coverage will cease.
AMP will pay the advanced funeral payment to your nominated beneficiary or to any other relevant person or business as necessary.

How does AMP's non-super plans compare with it's superannuation plans?

AMP Elevate offers life insurance inside and outside superannuation. Here's how the benefits compare:

o Available as an additional option

Who is eligible for AMP Life Insurance?

Coverage through AMP is available to citizens or permanent residents of Australia. To qualify for coverage, you must be currently residing in Australia and be between the ages of 16 and 60. The coverage amount can range from a minimum of $100,000 to a maximum of $1,000,000. Your coverage can actually exceed $1,000,000 once annual inflation increases come into effect.

To apply, you can fill out an online application that will ask for basic information and a few personal details including occupation and if you are a smoker. In the online form, you can choose the amount of coverage in increments of $50,000 starting at $100,000 up to the maximum of $1,000,000.

• AMP Life Insurance

  You're eligible if you're a citizen or permanent resident in Australia aged 16-60.

• AMP Flexible Lifetime

  The entry age 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,
  • For Trauma cover. This 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.

• AMP Elevate

  Entry ages for AMP Elevate are as follows:

  • Life Insurance. 11-77 years of age for stepped premiums and 11-65 for level premiums.
  • Income protection. 18-55 years of age for benefit period up to the age of 60. 18-60 for a benefit period up to the age of 70.
  • TPD insurance. 16-60 years of age for stepped and level premiums, and 25-50 on hybrid premiums.
  • Trauma insurance. 16-65 years of age on stepped premiums, 16-60 on level premiums and 25-50 on hybrid premiums.

Exclusions to understand

As with any life insurance policy, it is important to be aware of any exclusions and reasons why a plan may not be paid.

AMP will not pay benefits for the following reasons:

Other things to know

Apart from the exclusions, it is important to be aware of the following terms:

• Cooling-off period. The AMP life insurance policy has a 30-day cooling-off period where you can make changes to be policy or cancel the policy as long as you have not put in a claim.
• Variations. AMP reserves the right to revise premium rates as part of general changes that will apply to all plans of a certain type. AMP can also change premium amounts based on inflation or taxation rates.
• Premium calculation. AMP calculates premiums by taking many life and health factors into consideration, including age, gender, smoking status and amount of coverage requested.
• Payment of premiums. Premiums are collected by QPR and debited to your account. For a policy to remain active, you must pay the premium in full by the due date. If a premium is 30 days late, AMP will cancel the policy.

The policy will come to an end under the following circumstances:

• After your 70th birthday.
• The date of your death or when a terminal illness benefit is paid.
• The date you make a written request to cancel your coverage.
• The date you cease to be an Australian resident or live outside of Australia for a continuous period of 6 months.

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 up to 30 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. Here are you options for making a claim:

What happens next?

• 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)
• 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.

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