A CommInsure Life Insurance Review
CommInsure was launched by the Commonwealth Bank Group (CBA) in 2002. They have since become one of the largest life insurers in Australia, providing income protection and life insurance products to over 4 million customers.
CBA has been operating in Australia for over 140 years and is a leading provider of integrated financial services in Australia, having amassed $971,719 million in assets as of 2016.
In September 2017, CBA Australia reached an agreement with the AIA Group to sell CommInsure. The deal is expected to be completed during the course of 2018. As part of the highly respected AIA Group, CommInsure will rely on the backing of the Group’s 40 plus years’ worth of experience in providing Australian customers with life insurance products.
There is a 20-year partnership agreement between CBA insurance and AIA in place. Apart from bringing their experience, stability, and up-to-date processes, one of the additional key changes is that their branding will slowly be replaced with AIA’s look and feel over the next couple of years.
Life insurance products from CommInsure include:
CommInsure Life Insurance Review
A CommInsure life insurance review will reveal all the important details, like their reputation for paying claims, the policies that they offer, additional benefits and features, as well as what they don’t cover and how long you’ll have to wait before you’re able to claim on a benefit. It’s important to carefully read through your product disclosure statement (CommInsure PDS) to ensure you’re getting value for money.
Each policy includes unique features and benefits, as well as the option to purchase additional cover for more peace of mind.
Pays a lump sum benefit if you die or if you become terminally ill and will die within 24 months, as confirmed by a medical professional. Your loved ones can use this money to help maintain their current lifestyle, pay for your funeral and any outstanding bills.
TPD cover pays a lump sum if you become totally and permanently disabled due to sickness or injury. This policy type can be purchased as a stand-alone or you can combine it with your Life Care policy.
You can choose between 3 TPD definitions
Any occupation TPD
Only pays a benefit if you are totally and permanently disabled and unable to return to any occupation for which you are reasonably trained and educated for.
Own occupation TPD
Benefit will be paid when you are totally and permanently disabled due to injury or illness and can no longer work in the specific occupation or field you worked in before.
To be eligible for any or own occupation TPD, you must be working outside the home for at least 20 hours per week.
TPD for homemakers
Providing cover for stay-at-home parents, this TPD option, also referred to as Domestic Duties TPD, pays you a lump sum benefit should you become totally and permanently disabled and unlikely to even be able to return to normal domestic duties, for example. cleaning the family home and taking care of the children or dependants.
Suffering from a trauma condition, like a heart attack or cancer, can be financially devastating and can have a significant impact on your life and those of your loved ones. Trauma Cover from CommInsure is designed to help you cope with your financial obligations when you are diagnosed with a specified critical illness as listed in their PDS.
Please note: There are some conditions listed in the PDS for which you’ll only receive a partial benefit, such as any of the Trauma Plus Cover conditions, early-stage breast cancer, and early-stage melanoma. Additionally, there are also some conditions where the partial benefit will only be paid out once, such as with any of the Trauma Plus Cover conditions.
CommInsure Income Protection
Income Protection will pay out 75% of your income as a monthly benefit if you are unable to work due to illness or injury, for a set period of time. However, if you can work in a reduced capacity then you will only receive a partial monthly benefit.
- You can choose your waiting period: 14 days, 1 month, 2 months, 3 months, 6 months, 1 year, and 2 years.
- You can choose your benefit period: 2 years or 5 years, or up to the age of 60, or 65, or 70 years old.
Take note: The shorter the waiting period and the longer the benefit period the higher your monthly premium will usually be.
If you own a business and are unable to work due to an illness or injury, who will pay your business expenses? To prevent the bills from piling up and potentially causing your business to go bankrupt you can get Business Overheads Cover.
This policy is designed specifically for self-employed people and business owners who don’t work from home and are responsible for paying eligible business expenses. This policy will pay out a lump sum benefit for fixed business expenses, up to $40,000 per month, while you are unable to work and meet these costs yourself.
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Commonwealth Insurance benefits
Income protection and life insurance products from CommInsure are designed to include several additional features and benefits at no additional cost to you. You can also purchase extra cover with your policy at an additional fee for more peace of mind.
It’s important that you consult the Comminsure Protection PDS to determine which benefits and additional options are best suited to your specific requirements.
- Life Care Advancement benefit:
If you take out Life cover, you get the Advance Payment benefit included with your policy. When you die, this benefit pays an advanced part of your total benefit, up to $30,000, to help your loved ones pay for funeral expenses. The amount that is paid out will be deducted from your death benefit lump sum.
- Child Cover option:
If you have children and have taken out Trauma Cover, you can purchase Child Cover, which pays out a lump sum if your child dies or is diagnosed with a specific child trauma condition, such as chronic kidney failure or cancer.
- Accidental Death Cover option:
A lump sum will be paid to your beneficiaries if you pass away due to an accident. The nature of the accident that can be claimed for is specified in the CommInsure PDS.
- Choose between stepped vs level premiums:
While stepped premiums cost less at the start of your policy, premiums increase every year, because as you age and your risk increases. Level premiums are based on the age you were when taking out the policy and start out more expensive, but generally remain more or less constant, excluding inflation and when you choose to increase your cover.
- Severe Hardship Booster benefit:
The Severe Hardship Booster benefit doubles your lump sum benefit amount if you die or are likely to die within 24 months from a specified illness. Generally, this benefit is included in your Life Care policy. CommInsure will either pay 100% of your Life Care or Terminal Illness benefit, or $250,000, whichever one is less.
- Financial Planning benefit:
This benefit is typically included in a Life Care policy and pays you up to $5,000 if you required the professional services of a financial adviser. You must first provide proof of these costs and then you can claim the cash back.
- Loyalty Bonus benefit:
If you’ve had your life care policy for 5 years, without cancelling or claiming, then the payment of the Life Care or Terminal Illness benefit will automatically increase by 5% without you having to pay a higher premium.
- Buy Back benefits:
CommInsure generally includes a Buy Back benefit with Life Care and Trauma Cover at no additional cost to you. Under this benefit, your Life Care and/or Trauma Cover will be reinstated 12 months after a TPD or Trauma claim has been paid.
- Accommodation Benefit:
This benefit is usually included with Life Care, TPD Cover, and Income Protection policies, and helps pay accommodation expenses for an immediate family member who needs to stay close by if you are terminally ill or injured and confined to bed. Typically, they’ll pay up to $350 a day for up to 30 days.
- Indexation Benefit:
Your cover amount is automatically increased every year, usually by 3% or the percentage increase in Consumer Price Index, whichever is more. This helps keep your cover in line with the cost of living. You can choose to remove this increase if you need to keep your premiums more affordable, but you’ll need to phone or write to CommInsure within 1 month of your policy’s anniversary date to let them know.
- Plan Protection:
You can add Plan Protection to your policy for an additional fee. This benefit pays for your premiums if you become totally and temporarily disabled for more than 3 months.
- Guaranteed Insurability:
If you’ve gone through a major life event, for example, getting married or having kids, you can increase your cover without having to provide additional health information. This option is also available to be purchased for major business events, like business growth or taking out a business loan.
- Waiving Premiums:
You won’t have to pay your income protection premiums for up to 6 months if you’re unemployed, undergoing financial hardship, or on parental leave. This benefit is included with your income protection policy, and not business overheads insurance.
As is the case with most life insurance policies, CommInsure has some general and policy specific exclusions under which a claim will not be paid, for example:
- If your Life Care claim arises from suicide or an attempted suicide within 1 year of your policy starting, the death benefit and/or the terminal illness benefit won’t be paid out.
- If your Accidental Death Cover claim arises from suicide or an attempt at suicide, self-inflicted injury or infection, consumption of alcohol or drugs that haven’t been prescribed by a medical practitioner, the benefit won’t be paid.
- If your Income Protection claim arises from any criminal activity or an act of war.
- If the insured person knew about a physical condition before the policy commenced.
Simple Life Insurance from CBA
Simple Life Insurance is designed to help you protect you and your loved ones from financial loss if something should threaten your lives.
Simple Life Insurance offers 4 types of cover:
You can even choose from one of their ready-made packages or customise your cover so that you only pay for the combination that suits your life and budget.
Simple Life Insurance packages:
*Based on the information of non-smoking women between the ages of 18 – 30 years old.
- Silver Package: This package is their most popular and can cost you around $39 per month for $300,000 Life Cover, $150,000 Disability Cover (TPD), and $30,000 Critical Illness Cover.
- Gold Package: Costs around $49 per month for $500,000 Life Cover, $250,000 Disability Cover (TPD), and $50,000 Critical Illness Cover.
- Platinum Package: This package is their most popular and can cost you around $59 per month for $700,000 Life Cover, $350,000 Disability Cover (TPD), and $70,000 Critical Illness Cover.
Please note: Pre-existing conditions (and other exclusions) are not covered by Simple Life from CommInsure.
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