With AMP Life Insurance, you can find tailored protection for you and your loved ones to offer security now and into the future.
AMP is one of the largest wealth management companies in Australasia, specialising in financial advice, superannuation, banking, investments and insurance.
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.
|Minimum and maximum cover amount||No maximum or minimum sum insured*|
|Age of entry||10 - 74* (Varies based on the policy)|
|How do I apply?||With an adviser over the phone or online with AMP directly (depending on the policy you opt for)|
*Based on AMP's Flexible Lifetime plan with a stepped premium.
What does AMP Life Insurance cover?
- Five types of cover. Depending on the product you go with, AMP offers up to 5 types of cover. Death Cover, TPD Cover, Trauma Cover and Income Protection.
- 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. 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.
- Income protection. Replace up to 75% your regular income if you're unable to work due to illness or injury.
- Business expenses insurance. Provides your business with a payment if you're unable to run your business due to an injury or illness.
- Up to a 30 day money-back period (On Elevate products). AMP provides up to a 28 day cooling-off period on it's direct offering and up to a 30 period on AMP Elevate. 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. Cover 24 hours a day, seven days a week, all around the world.
- Guaranteed renewable. As long as you continue to pay your premiums, AMP guarantees to continue offering cover on it's Flexible Lifetime Life Insurance, regardless of any changes to your health, occupation or pastimes. Excludes income protection.
- Plan ownership choices. There are several plan ownership options. Depending on the policy you choose, AMP allows ownership 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. Depending on the policy you have, you can choose from stepped or level premiums to suit your budget and cover requirements.
AMP offers life insurance products through two channels. Either:
- Directly online or,
- With an adviser
Let’s take a closer look at each of AMP’s life insurance products:
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.
AMP Flexible Lifetime provides the a range options for your personal needs. The Life Insurance plan offers:
- Death and terminal illness benefit. Provides a lump sum upon death or terminal illness. There is no maximum sum insured.
- Total and Permanent Disablement (TPD) benefit. A lump sum up to $5 million if you become totally and permanently disablement.
- Trauma benefit. A lump sum payment up to $2million if you experience a specific trauma condition and survive 14 days.
Other plans available through Flexible Lifetime policy:
- Income protection Up to 75% monthly income replacement if you become disabled due to an illness or injury.
- Business overhead expenses. Payment for eligible business expenses if you're disabled due to an illness or injury.
AMP Elevate provides the following cover options:
- Life insurance inside and outside of super. Provides death benefits with no maximum sum insured. You have to options of either a standalone life insurance, life insurance inside superannuation or life insurance inside a self managed super fund (SMSF).
- Income protection inside and outside of super. Replace up to 75% of your regular income if you're unable to work. Income protection can be bought as a non-super plan, inside superannuation or as a SMSF plan.
- TPD cover. Can be purchased either as standalone plan or as an option with life insurance or trauma insurance.
- Trauma cover. Can be purchase either as a standalone plan or as an option with life insurance.
Additional options to consider
- Children’s trauma cover option (available on Flexible Lifetime and Elevate plans). 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 (available on Flexible Lifetime and Elevate plans). 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 59th birthday while you continue to remain totally disabled.
- Business safeguard option (available on Flexible Lifetime plan). 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.
- Children’s trauma cover option. See description above.
- Waiver of premium option. See description above.
- TPD Plus option (available on Flexible Lifetime plan) 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 (available on Flexible Lifetime and Elevate plans). 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.
- Partial Package option (available on Flexible Lifetime plan). 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 on Flexible Lifetime plan). 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.
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:
|Benefits||Life Insurance Plan (non-super)||Life Insurance Superannuation Plan||Life Insurance SMSF Plan (Self-managed super fun)|
|Future insurability benefit||Yes||Yes||Yes|
|Upgrade of benefits||Yes||Yes||Yes|
|24-hour worldwide cover||Yes||Yes||Yes|
|Advancement of funeral expenses||Yes||No||No|
|Financial plan benefit||Yes||No||No|
|Business solutions option – life||Yes||Yes||Yes|
|Premium waiver option||Yes||Yes||Yes|
|Total and permanent disability (TPD) option||Yes||Yes||Yes|
|Double TPD option||Yes||Yes||Yes|
|Life buy back TPD option||Yes||Yes||Yes|
|Business solutions option – TPD||Yes||Yes||Yes|
|FlexiLink total and permanent disability (TPD) (iv)||o||o||o|
|Life buy back TPD option||o||o||o|
|Business solutions option – TPD||o||o||o|
|Activities of Daily Living (ADL) TPD option||Yes||Yes||Yes|
|FlexiLink trauma (iv)||o||o||o|
|Life buy back – trauma option||o||o||o|
|Trauma reinstatement option||o||o||o|
|Business solutions option – trauma||o||o||o|
|Double trauma option||Yes||No||No|
|Life buy back – trauma option||Yes||No||No|
|Trauma reinstatement option||Yes||No||No|
|Business solutions option – trauma||Yes||No||No|
o Available as an additional option
Your eligibility will vary with each life insurance product.
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.
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 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
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 AMP.
- 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.
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.
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:
For Flexible Lifetime and other AMP Life Insurance
- Lodge your claim online using the claims notification service
- Call 1300 366 214, 8am to 5pm weekdays.
- Write to AMP Life Claims PO Box 300 PARRAMATTA NSW 2150
For AMP Elevate
- Call 1300 366 214, 8am to 5pm weekdays.
- Mail your completed claim form to AMP Claims, PO Box 14330 Melbourne VIC 8001
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.