What is limited acceptance cover?

Limited acceptance cover is a type of life insurance policy designed for individuals who may not qualify for a fully underwritten policy due to health reasons, age, or other factors. It usually comes with lower cover amounts and may have specific exclusions or a waiting period for certain claims.

How does limited acceptance cover differ from interim cover?

Interim cover is a temporary benefit provided while your application for a full life insurance policy is being processed. It fills the gap until your main policy is approved or declined. Limited acceptance cover, on the other hand, is a type of actual life insurance policy itself. It is specifically designed for people who might find it difficult to obtain traditional fully underwritten life insurance, offering a simpler application process and immediate cover, but generally with lower benefit amounts and potentially a waiting period for non-accidental death.

Does interim cover cost extra?

No, interim cover generally does not cost extra. It is typically included as a standard feature of the life insurance application process by participating insurers. You do not pay a separate premium for this temporary protection while your main policy is being assessed.

Can I get interim cover for all types of life insurance?

Interim cover is commonly available for several types of life insurance policies, including death cover, trauma insurance, Total and Permanent Disability cover, and income protection. The specific types of cover for which interim benefits are offered can vary between insurers, so it is always important to check the policy details when you apply.

What happens if my full life insurance application is declined?

If your full life insurance application is declined, your interim cover will cease. However, if a claimable event occurred while your interim cover was active and before your main application was declined, the interim policy should still pay out according to its terms and conditions. The claim would be assessed based on the circumstances at the time of the event.

Can interim cover be extended beyond 90 days?

Generally, interim cover is for a fixed period, typically up to 90 days, and cannot be extended beyond this timeframe. Most insurers expect to complete the underwriting process within this period. If your application takes longer than 90 days, your interim cover will usually lapse, leaving you uninsured until your main policy is approved. To avoid this, it is important to respond promptly to any requests for information from your insurer.