Combined and Individual cover options

If you apply for Life cover with either, or both, Critical Illness cover or Permanently Unable to Work cover then you will need to decide whether you want your cover to be ‘combined’ or ‘individual’. If you select Critical Illness cover and/or Permanently Unable to Work cover without Life cover, only individual cover is available.

Combined cover
With combined cover, your premiums will be reduced. This is because payment of a benefit under one type of cover reduces the cover amount of any remaining benefits. For example, if you had:

• $700,000 of Life cover,
• $200,000 of Critical Illness cover and
• $500,000 of Permanently Unable to Work cover

then in the event you suffered a Critical Illness as defined by the policy and we paid you your $200,000 Critical Illness benefit your Permanently Unable to Work cover amount would be reduced to $300,000 and your Life cover amount would be reduced to $500,000.

If you take combined cover, your policy:

• must include Life cover and
• the Cover Amount of any Critical Illness or Permanently Unable to Work cover cannot exceed the Life Cover Amount.

The maximum total amount you can be paid under a policy with combined covers is the Life Cover Amount before any other benefits have been paid.

Individual Cover
With individual cover you will pay a higher premium. This is because payment of a benefit under one type of cover will not affect any other type of cover you may have. For example, if you had:

• $700,000 of Life cover,
• $200,000 of Critical Illness cover and
• $500,000 of Permanently Unable to Work cover

then in the event you suffered a Critical Illness as defined by the policy and we paid you your $200,000 Critical Illness benefit your Permanently Unable to Work cover amount would remain $500,000 and your Life cover amount would remain $700,000.