Decrease Sum Insured Due to Hardship: Terms & Conditions

Introduction

This document describes the terms and conditions that apply when a Special Application to Decrease Sum Insured Due to Hardship is made. These terms, along with the terms of cover described in the applicable PDS and Policy Document will apply if your Special Application is accepted by TAL and you subsequently increase cover you have decreased pursuant to this offer.

Please note: if your application includes TPD or Income Protection, any application to re-increase cover will be subject to occupational underwriting criteria. This may mean that if your occupation risk category has changed since you took out cover/were last underwritten, or if you are unemployed, you may not be eligible to re-increase your IP or TPD cover under this offer.

Please read this document carefully and consider seeking financial advice, before making a Special Application to Decrease Sum Insured Due to Hardship.

How it works

This offer applies only where a reduction in the sum insured is made as a result of COVID-19-related financial hardship, or where we otherwise specifically permit in writing.

If your application to Decrease Sum Insured Due to Hardship is accepted, you will be given the option to increase your sum insured  amount up to the same level as it was prior to the reduction by applying within 6 months of the reduction. No medical or financial information will be required to increase the  sum insured amount up to the same level as it was prior to the reduction within this period. If you are applying to reinstate TPD or Income Protection cover, your occupation and the risks involved in your work must remain the same when you make any application to increase your sum insured. If your occupation has changed, the increase will be subject to underwriting and acceptance. 

In addition to the terms of the PDS and Policy Document and any special conditions already applicable to your Plans or Policy(ies), if you decrease your sum insured under the  Sum Insured Decrease Due to Hardship offer, and subsequently increase your sum insured with limited underwriting, the following terms will apply in respect of the increased amount:

For Life (Term) insurance:

No benefit will be payable for the increased amount for any claim which arises directly or indirectly from any condition or event which occurred or was diagnosed, or the signs or symptoms leading to the diagnosis first became apparent to the Life Insured or would have become apparent to a reasonable person in the Life Insured’s position, during the period for which cover was decreased and until the date we accept the application to increase cover under the Decrease Sum Insured Due to Hardship offer.

Note: If cover is reduced under the Decrease Sum Insured Due to Hardship offer, and the Life Insured subsequently passes away as a result of COVID-19 within 6 months of the effective date of the decrease, we will pay the lesser of the death cover sum insured for the Life Insured at the time of Cover and Premium Suspension, and $750,000 across all policies providing death cover that are issued by TAL and Asteron in respect of the Life Insured.

For Critical Illness (Trauma) insurance:

No benefit will be payable for the increased amount for any claim which arises from any condition that occurred or was diagnosed, or for which signs or symptoms leading to diagnosis first became apparent to the Life Insured or would have become apparent to a reasonable person in the Life Insured’s position, during the period for which cover was decreased and for three months following the date we accept your application to increase cover under the Decrease Sum Insured Due to Hardship offer.

The above exclusion does not apply for the increased amount to the extent that the Critical Illness (Trauma/Recovery) event arises from an Accidental Injury that occurs during the three months following the date we accept the application to increase cover. ‘Accidental Injury’ means an injury caused wholly by violent, accidental, external and visible means.

For Income Protection & TPD insurance:

No benefit will be payable for the increased amount for any claim which arises from any condition that occurred or was diagnosed, or for which signs or symptoms leading to diagnosis first became apparent to the Life Insured or would have become apparent to a reasonable person in the Life Insured’s position, during the period for which cover was decreased  and for three months following the date we accept your application to increase cover under the Decrease Sum Insured Due to Hardship offer.

The above exclusion does not apply for the increased amount to the extent that the Life Insured’s disablement arises from an Accidental Injury that occurs during the three months following the date we accept the application to increase cover under the Decrease Sum Insured Due to Hardship offer. ‘Accidental Injury’ means an injury caused wholly by violent, accidental, external and visible means.

Please also note that:

  • your premium may differ to the previous cost of your policy following reinstatement and will be required to be paid prior to the application for increase being accepted; 
  • where your policy anniversary occurs during the period of reduced cover, no indexation will be applied in respect of the reduced cover portion; 
  • the increased cover will be subject to the same terms that applied prior to the decrease, including any special terms and conditions, as well as the terms and conditions set out in this offer; 
  • for TPD or Income Protection, your occupation and the risks involved in your work must remain the same when you make any application to increase your cover. If your occupation has changed, the increase will be subject to underwriting and acceptance.

This offer is not available for benefits with a level premium, or any benefits paid by annual rollover from a superannuation fund, including Linked, Rider,  Attached, Superlinked and Split benefits. Some products may not be eligible for this offer.

Your Special Application must be received and accepted by TAL before 30 September 2020. TAL reserves the right to extend this offer at its discretion.

Important Information

If you reduce your sum insured, only the reduced sum insured will be paid for any event that occurs, or condition for which signs or symptoms became apparent or were diagnosed, following the reduction. This is excepting where the cover that you reduced includes a death benefit and the life insured’s death is caused directly by Covid-19 and occurs within 6 months of the effective date of the decrease. In this instance we will pay the lesser of $750,000 or the sum insured prior to the decrease, across all policies issued by us in respect of that life insured.

For cover that you reduce and subsequently increase without being required to provide medical or financial information, in certain situations only the reduced sum insured will be payable for certain events that occur, or for which signs or symptoms became apparent or were diagnosed, for three (3) months after the reinstatement.

You can elect to provide updated medical and financial information which, if acceptable to TAL, may mean that your cover can be increased without these restrictions. Before making an application to increase cover without providing updated medical or financial information, you should consider whether these additional restrictions are appropriate, having regard to your financial situation, objectives and needs. If not, please notify TAL that you wish to provide updated medical and financial information before increasing your cover.

This information is general advice only, which means that it does not take into account your individual needs, objectives or financial situation. Before making any decision about your Policy, you should consider whether the advice is appropriate for you, taking into account your individual needs, objectives or financial situation, and read the relevant Product Disclosure Statement, Policy Document or other contractual document. TAL recommends that you consult your financial adviser before making any changes to your cover(s) or Policy or submitting a Special Application to increase your cover without providing updated medical and financial information under this option.

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