Future insurability option

If you know you are going to need significantly more cover in the future than what you need right now – maybe you’re planning to enter the property market in a couple of years time – the Special Events Increase cap of 75% probably won’t be enough. In that case, there is the Future Insurability option.

This is an optional benefit that can be purchased when you first apply for cover, which allows you to increase your cover by up to 10% every policy anniversary for the first 10 years. The maximum overall increase is 100% of the original benefit amount, and just like the benefits already mentioned, your health is not taken into account.

This can be a great option if you are looking to buy a home or grow your family in the future and don't want to be paying the premiums for benefits you don't feel you need just yet. When used in conjunction with the Special Events Increase Benefit, you could increase your benefit amount by 175% without any medical assessment. If we use the same example as we used for ‘Special Events Increase', you could gradually increase your initial $100,000 of cover up to a total of $275,000 over 10 years by utilizing these two benefits. That is without considering the automatic annual inflation increases, which would increase it even further.

Increasing Income, Mortgage & Household Expenses Benefits

For Covers that pay a monthly benefit if you are disabled, such as Income, Mortgage Repayment, and Household Expenses Cover, a benefit similar to the Special Events Increase Benefit allows you to increase your cover if your income, mortgage, or household expenses increase.

Business Future Insurability Option

If you have a business policy insuring the owners and/or key employees of the business, Partners Life business insurance products include a Business Future Insurability Option which allows cover to be increased when business debt, revenue, or value increases.

How do you exercise one of these options?

Aside from the automatic inflation increases these benefits can only be useful if you remember to utilise them – otherwise they won't do you a lot of good.

Telling your adviser when anything changes in your life is the best way to ensure you don't miss out on any increase opportunities.

Your adviser will be able to walk you through the process of applying, which is very simple.

And don't forget, any increase in the benefit amount will result in a corresponding premium increase.

... and don't forget there's the loyalty discount...

Starting from your second policy anniversary, your premium is discounted by 1% and by an additional 1% on each anniversary until you have reached the 10% maximum. This 10% discount then applies for the life of the policy, and applies to any new benefits or family members you add to it allowing you to afford even more cover if needed.