This advertorial has been written by our third-party product provider NobleOak Life Limited
FlexiCover Life Insurance is a life insurance product issued by NobleOak who have a 145-year history of protecting Australians – and the product offers flexibility and real choice.
FlexiCover offers financial protection in the event you may experience serious illness, disability, or death, depending on the covers selected. Available to Australians and their families, obtaining a policy may help provide peace of mind if life takes a turn for the worse.
FlexiCover offers an optional Annual Decreasing Cover feature which can be selected for Life, TPD & Trauma covers (it is not available with Disability Income Insurance cover). If this option is chosen, the cover amount can decrease by a percentage you nominate, up to 10%, each year. For example, you may wish for your cover to reduce, as a financial commitment (such as your home loan balance) reduces over time. As premiums are adjusted accordingly, ultimately this can be a more affordable way to manage insurance premiums over the life of the policy.
However, as a policyholder you have other options. If the Annual Decreasing Cover feature is not selected, then the cover indexation feature increases the sum insured by 3% (or by the CPI, whichever is greater) at each anniversary to help your level of cover keep up with inflation. These increases stop at age 65 for Life and TPD Insurance, and at age 60 for Trauma Insurance. Your premium will automatically adjust to reflect the increase in cover. Please note that the cover indexation feature does not apply to Disability Income Insurance cover.
Finally, you can choose to fix your cover. If you want your Life, TPD and/or Trauma cover amounts to be truly fixed so they won’t change over time, then you can choose not to have the Decreasing Cover Feature apply to your cover amounts and you can ask us not to apply indexation to your cover.
Some people with life insurance don’t realise that life insurance premiums generally increase every policy anniversary (yearly). This is because the stepped premium structure means premiums rise in line with the policyholder’s age; also, indexation increases in cover amounts will result in a higher premium as the cover level rises. This premium rise may cause various policyholders to rethink life insurance, especially if they cannot afford the increased premiums.
If the Annual Decreasing Cover feature is selected: