Zurich Life Insurance Review Australia
Zurich Life Insurance is one of Australia’s leading life insurance companies and has earned a reputation for their speed and transparency in paying claims. In 2016, $140 million in life insurance claims were paid to Australian families. While their commitment to paying claims are impressive, it is a good idea to review Zurich life insurance products and compare premiums, features and benefits before deciding whether they offer a policy that suits your requirements and budget.
List of Zurich life insurance products:
- Zurich Wealth Protection: Comprehensive life insurance, including Death Cover, TPD, Trauma Insurance, and Income Protection.
- Ezicover: If you prefer to have more control over your insurance then you can select Ezicover, which includes Ezicover Life Insurance, Accidental Death, Ezicover Income Protection, and the Funeral Advantage.
- Zurich Active: Combines life insurance with severity-based trauma cover into one policy, and also allows you to also add income protection.
- Sumo: Considered the ‘high-end wealth protection solution’, provides you with the option of purchasing higher levels of cover. Sumo is aimed at higher income salary earners and successful business owner.
Zurich provides four main life insurance products, including Wealth Protection, Ezicover, Zurich Active, and Sumo.
Each product is designed to help you find the life insurance coverage that fits your requirements, lifestyle and budget.
Additionally, Zurich has included distinctive features and benefits so that their cover options represent true value for money. However, it’s important that you review the relevant Zurich Product Disclosure Statement (PDS) and carefully consider what is and what is not covered before you make a decision.
Zurich Wealth Protection products
Zurich Protection Plus
Protection Plus is a flexible package, which you can create yourself by choosing any combination of Death cover, TPD (total and permanent disablement), and Trauma insurance. Each of these policies includes built-in benefits and optional extras that you can purchase for an additional fee.
A lump sum will be paid to your nominated beneficiaries if you, as the life insured, die or are diagnosed with a terminal illness as specified by Zurich. This lump sum can be used by your loved ones to help meet household expenses, pay any outstanding bills, and generally maintain their current lifestyle.
- Entry ages are between 10 and 70 years old.
- Expiry age is at 99 years old.
Advancement for funeral expenses
- Up to $15,000 will generally be paid, from your death benefit to your beneficiaries, which can be used to pay for funeral expenses, once a valid death certificate has been provided.
Accidental injury benefit
- Either 25% of your Death cover or $500,000 (whichever is less) will be paid if you lose the use of a hand, foot, or one eye due to an accident. 100% of your Death cover, up to $2 million, will be paid should you lose the use of either hand, or both feet, or both eyes, or any combination of these.
Premium waiver option
- If you become disabled and can’t work, prior to turning 70 years old, then this optional benefit waives your premiums for the period of disablement. You can add this to your policy for an additional fee.
Buyback death option
- If you have combined Death and TPD cover and have claimed for a TPD benefit, then you have the options of having your Death cover reinstated 12 months after the TPD benefit was paid. You can purchase this benefit for an additional fee.
Zurich offers you two options when it comes to their total and permanent disability cover:
- Platinum TPD
- Essential TPD
Both will pay out the TPD benefit if you become totally and permanently disabled, however, the Platinum option also includes a Partial impairment benefit. This benefit pays out 40% or 65% of the TPD benefit, depending on the level of cover you choose, when you suffer from functional impairment of 2 or 3 activities that you perform in your daily life, like feeding and bathing yourself.
- The entry ages are between 15 and 60 years old.
- Expiry age is 65 years old if your policy is linked to Trauma cover and 99 years old if not.
TPD advancement benefit
- 25% of the TPD benefit, up to $500,000, will be paid if you suffer a partial loss of a limb or partial loss of sight.
Double TPD option
- If you choose to take out TPD together with Trauma cover.
Premium waiver option
- This optional benefit can be added to your policy for an additional fee. Should you become disabled and can’t work, then you won’t have to pay your premiums during the period of disablement.
A key exclusion
- Your claim won’t be paid if your disablement was due to an intentional, self-inflicted act or attempted suicide.
Trauma cover pays out a lump sum if you suffer from one of the specified trauma conditions listed in the Zurich PDS. You have a choice between Platinum Trauma and Extended Trauma, depending on the level of cover you want.
Generally, the main difference between Platinum and Extended is the level of cover that you will receive when you lodge a claim.
- The entry age is between 15 and 59 years old
- Expiry age is 99 years old if your policy is linked to Death cover and 75 years old in all other cases.
- A lump is paid if you’re diagnosed with a condition as specified by Zurich Australia. There are 38 specified conditions, including deafness, advanced diabetes, blindness, heart attack, multiple sclerosis, and Parkinson’s disease.
Partial trauma benefit
- Pays out a partial benefit for some conditions. This benefit applies if your trauma benefit amount is $100,000 or more and you have been diagnosed with one of the 12 conditions listed in the PDS, for example, Type 1 diabetes and early-stage melanoma. Under this policy, the Platinum Trauma pays out 25% of the Trauma benefit amount, while Extended Trauma pays out 10%.
Paralysis booster benefit
- Pays out 200% of the trauma benefit if you’re diagnosed with diplegia (a form of cerebral palsy), hemiplegia, paraplegia, or quadriplegia.
- Your beneficiaries will, generally, receive $5,000 to pay for your funeral expenses if you die and don’t have Death cover.
Trauma reinstatement option
- If you have Trauma cover, then your policy could be reinstated 12 months after a trauma benefit has been paid.
Double trauma option
- If you chose to combine your Trauma and Death cover and you’ve claimed for a trauma benefit, your Death cover could be reinstated 14 days after the payment has been made.
Premium waiver option
- You can purchase this optional benefit so that should you become disabled and can’t work, then you won’t have to pay premiums for the period of disablement.
- Usually a trauma claim won’t be paid if the claim results from an intentional, self-inflicted injury or attempted suicide. Additionally, certain trauma conditions might not be claimed for if the condition arises within the first 90 days of your policy commencing or being reinstated.
If your child is diagnosed with a critical illness Zurich Child cover will provide a lump sum payment which could be used to cover additional expenses and help you are your partner take time off work to care for your child.
There are 18 conditions which you can claim for, including bacterial meningitis, major head trauma, severe burns, deafness, and major organ transplant.
- Children between the age of 2 and15 can be covered by this policy and once the child turns 15, the policy can be converted to an adult policy, without any more health evidence required.
Injury advancement benefit
- $10,000 will be paid in advance if your child loses a single limb or eye or suffers a severe accident or illness and needs intensive care.
- If you have chosen a policy worth $200,000 or more, you will receive $5,000 per month for up to 3 months if you or your partner stop working to care for the child who is seriously ill – but not suffering from a specified condition. This is an optional paid for option.
- Any claims that arise from an intentional, self-inflicted act or suicide attempt by the child within the first 13 months of your policy commencing or being reinstated. Additionally, no claim will be paid if the policyholder or another beneficiary intentionally injured the child.
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Zurich Income Protector
Protects you against a loss of income if you’re unable to work due to sickness or injury for a specified period of time. Provides a monthly benefit, generally up to 75% of your pre-tax income, which you can used to pay your bills, mortgage, and generally support your family.
- Choose between Income Protector and Income Protector Plus, please consult the Zurich Income Protector PDS for a complete breakdown of their respective differences.
- You choice of Waiting period, the time you must wait before you can claim: 14, 30, 60, 90 and 180 days, 1 or 2 years.
- Your choice of Benefit period, how long you’ll receive the monthly income benefit for 75% of your monthly income will be paid to you for 1, 2, or 5 years.
Confined to Bed benefit
- If you’re disabled and confined to bed for more than 2 days, you’ll usually receive benefits right away during the waiting period (max 180 days). This benefit is automatically included with Income Protector Plus.
- If you die, then your beneficiaries will receive up to 4 times the monthly insured benefit to help with your final expenses. This benefit is included with both levels of cover at no additional cost to you.
Waiver of premium
- This feature of your policy means that you won’t pay premiums while your claim is being paid to you.
- There are no waiting periods if your qualifying disability recurs from a related cause within 12 months.
Family Care option
- You can purchase this option to ensure that benefits are still paid to your surviving partner for up to 5 years should you die while your claim is being paid.
- No benefit will be paid for any period while you are in jail, and no benefit will be paid for a disability due to elective or donor transplant surgery unless these actions took place 6 months after commencement or reinstatement date.
Business Expenses Cover
If you own and run your own business and are unable to work for a specified period of time due to an illness or injury, then business expenses cover is a product worth looking into.
Zurich Business Expenses insurance pays out a monthly benefit to reimburse up to 100% of qualifying business expenses, like rent, rates, or electricity, or to reimburse up to 75% of key person replacement costs.
A key person replacement cost is simply what a business would have to pay to replace an insured key person in the business. You’ll be able to choose which benefit type you want to be paid out for when you apply for this policy.
- The entry age: Between 19 and 60 years old
- Expiry ages: Your policy will expire when you reach age 65.
Discounts from Zurich life
Zurich offers several loyalty discounts with their policies, particularly through the Protection Plus product range. For instance, if you purchase more than one Zurich Protection Plus policy, you’ll only pay one management fee instead of paying the management fee for each policy.
- Multi-policy discount: Generally, you’ll receive a discount when you purchase more than one Protection Plus policy type. This discount applies whether you combine your policies or have multiple stand-alone policies.
- Family discount: You’ll save on your premiums when one or more members of your family purchase a Zurich Protector Plus policy or one multi-life policy. The more family members involved, the more you save.
Frequently Asked Questions
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