Commonwealth Bank Life Insurance

Information verified correct on September 30th, 2016

Compare simple life insurance options from Commonwealth Bank and get protection for your family online or over the phone.

Commonwealth Bank offers a range of direct life insurance solutions that can be taken out entirely online or over the phone without having to speak with a financial adviser. The Simple Life product range provides insurance to protect those around you in the event of death or serious illness. The products include:

  • Life Cover up to $1 million
  • TPD Insurance up to $500,000
  • Critical Illness Cover up to $200,000
  • Bill Protection Insurance up to $5,000

This review will provide an overview of these different products and the eligibility requirements to apply.

Contact an adviser and get a quote for Commonwealth Bank Life Insurance

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Simple Life Cover Options

Life Care

  • Pays a lump sum if you die or are diagnosed terminally ill
  • Provides a cash advance of up to $30,000 of the Life Care Benefit to help cover funeral expenses
  • Available inside or outside super
  • Buy Back Benefit automatically reinstates Life Care 12 months after CommInsure pays a TPD or Trauma claim
  • Loyalty Bonus Benefit ensures that once you have held a policy for five years, the Life Care or Terminal Illness Benefit is automatically increased by 5 per cent at no extra cost
  • Cover automatically increases each year to keep pace with inflation
  • Optional extras include Child Cover, Accidental Death Cover and Business Safe Cover

Income Protection

  • Pays a monthly benefit to replace up to 75 per cent of your income while you are unable to work due to illness or injury
  • Boosted Total Disability Benefit available to replace closer to 100 per cent of your pre-disability income
  • Partial Disability Benefit if, due to disability, you can only work in a reduced capacity and suffer a loss of income
  • Cover can be held inside or outside of super
  • Reward Cover Benefit offers up to $100,000 of Accidental Death Cover at no extra cost after three years of cover
  • Premiums waived while a Total or Partial Disability Benefit is being paid
  • Choose your waiting period and benefit period
  • Policies held outside super also offer a Rehabilitation Benefit and Unemployment Cover Benefit

TPD Insurance

  • Pays a lump sum benefit if you become totally and permanently disabled
  • Pays a $10,000 death benefit if you die
  • Can be purchased on its own or combined with Life Care
  • Severe Hardship Booster Benefit doubles the TPD Benefit (up to $250,000) if you suffer a specified disability as a result of injury
  • Loyalty Bonus Benefit ensures that cover increases by 5 per cent once you’ve held a policy for five years
  • Accommodation Benefit helps a family member stay near you if you’re confined to a bed away from home
  • Financial Planning Benefit to cover the cost of financial planning consultations after receiving a TPD Benefit
  • TPD Cover also available for homemakers and stay-at-home parents

Trauma Cover

  • Provides a lump sum payment if you suffer a specified trauma condition
  • Severe Hardship Booster Benefit doubles the lump sum if you suffer a serious specified condition, such as severe burns, paraplegia, loss of limbs or loss of sight
  • Loyalty Bonus Benefit ensures that the Trauma Cover Benefit is increased by 5 per cent after you’ve held cover for five years
  • Buy Back Benefit automatically reinstates Trauma Cover 12 months after the payment of a claim
  • Financial Planning Benefit of up to $5,000 to help you manage your finances after receiving a Trauma Cover Benefit
  • Accommodation Benefit helps a loved one stay by your side when you’re confined to bed a long way from home

Business Overheads Cover

  • Perfect for self-employed people
  • Provides up to $40,000 per month to cover the regular, fixed operating expenses of your business when you are unable to work due to sickness or injury
  • Helps cover mortgage repayments and business loans, insurance premiums, rent, depreciation of plant and equipment, rates, utility charges and accountancy fees
  • Premiums waived while you are receiving a benefit
  • Receive the lesser of the monthly benefit amount and the business expenses incurred in that month
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Who is eligible for Commonwealth Bank Policies?

Eligibility requirements and cover limits vary according to the policy you select:

Life Care

The eligible entry age for Life Care is:

  • 17 to 54 for level premiums
  • 17 to 69 for stepped premiums

Cover expires when you reach 80 years of age (Total Care Plan Super) or turn 99 (for SMSF Plans or policies held outside super). There is no limit to the maximum level of cover you can apply for.

TPD Cover

The eligible entry age for TPD Cover is:

  • 17 to 54 for level premiums
  • 17 to 59 for stepped premiums

You will also need to be working full-time or part-time outside the home for at least 20 hours per week in order to qualify for cover, but CommInsure will also consider full-time home carers.

You can apply for up to $5 million cover and cover expires when you turn 65 (Total Care Plan Super) or 80 (SMSF Plans or policies held outside super).

Trauma Cover

The maximum amount of Trauma Cover you can apply for is $2 million. The eligible entry ages are as follows:

  • 17 to 54 for level premiums
  • 17 to 62 for stepped premiums

Cover expires when you reach 80 years of age.

Income Protection

To qualify for income protection cover you will need to be working at least 20 hours full-time or part-time per week. The eligible entry ages are as follows:

  • 17 to 54 for level premiums
  • 17 to 59 for stepped premiums
  • 19 to 54 for those working in aviation
  • 17 to 49 for those working in specialist risk occupations

The maximum monthly benefit varies depending on your occupation. Although most occupations qualify for a maximum benefit of $30,000 per month, specialist risk - medium workers qualify for a maximum benefit of $10,000 per month, while specialist risk - high and heavy risk workers can only receive $7,000 per month.

Business Overheads

To qualify for Business Overheads Insurance you must be either:

  • Self-employed with special skills or expertise, working away from home
  • An income-generating member of a small business

No cover is available for people working in occupations classified as heavy risk or specialist risk.

The eligible entry age is 17 to 54 years, and the maximum monthly benefit is $40,000.

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How do I Make a Claim for Commonwealth Bank Insurance?

If you need to make a claim on your CommInsure life insurance policy, phone the insurer directly to obtain a claim form. You have three months after an event or incident occurs to notify CommInsure of your claim in writing.

You will then be sent a claims kit. This must be completed by you and the life insured’s medical practitioner before being returned to CommInsure. Once the insurer has received the completed claims kit it will assess your claim and contact you if any further information is required.

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Some questions you might have about your Commonwealth Bank Insurance

How much does CommInsure pay in terms of claims?

In 2013, CommInsure paid in excess of $665 million in life and disability insurance claims to more than 10,000 Australians.

Does CommInsure offer a loyalty bonus to customers?

Yes. Once you’ve held Life Care, TPD Cover, Trauma Cover or Child Cover for five years, the benefit amount is automatically increased by 5 per cent at no extra cost.

Are my income protection insurance premiums tax deductible?

Yes, income protection premiums can usually be claimed as a deduction against a taxable income.

What can I do to lower my Commonwealth Bank life insurance premiums?

There are several ways you can save money on premiums, including:

  • Switching from monthly to annual payments to save 8 per cent
  • Declining CPI increases that will raise your sum insured and also your premium
  • Changing to non-smoking premium rates if you gave up smoking more than 12 months ago
  • Reviewing your level of cover
  • Flexi-linking a Life Care policy held inside super to a TPD or Trauma Cover policy held outside of super

Can I nominate beneficiaries to receive my Commonwealth Bank life insurance benefits if I die?

Yes. If your policy is held outside super you can nominate up to five beneficiaries, while a Total Care Plan Super policy allows you to make either a binding or non-binding nomination.

Can I pay life or income protection insurance premiums from my super fund?

Yes. A Total Care Plan Super policy allows you to use the Super Payment Method to pay your premiums.

What is split TPD?

This option allows you to split your TPD Cover across two separate policies - one held inside super and the other held outside super. This means that any TPD claim you make is assessed against both the “any occupation” and “own occupation” definitions of disability, increasing the likelihood of a benefit being paid.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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