Bundling cover

In Australia, you have the option of buying bundled trauma insurance instead of a stand-alone policy.

Bundled insurance is where trauma cover is added onto your life insurance policy, with both policies sharing the same sum insured, or a lesser level of trauma cover.

A bundled insurance policy which has attached benefits is also often referred to as a 'rider' benefit.

Why choose to bundle your trauma insurance benefits

The premiums can be in certain circumstances far cheaper than having to buy stand alone 'life insurance' and stand alone 'trauma insurance'.

Another good reason to purchase bundled insurance is the comprehensiveness of coverage that this style of policy provides.

This is because most trauma insurance policies usually require you to survive a traumatic event for at least 14 days before you can make a claim. Some insurers define this 'survival period' for as long as 21 to 30 days. If you pass away before this period you cannot make a trauma insurance claim, but with a bundled policy you could make a life insurance claim, depending on your policy's definition.

However one downside is that any trauma claim paid will only ever be the maximum amount for that portion of the policy. It also means that if you make a trauma insurance claim, followed by a life insurance claim in the future, your life insurance benefit will be reduced by the previous trauma benefit paid.

To counteract this downside many insurers have developed 'add-on' policy options usually at an additional cost. They include the following:

• Life insurance buy back
• Double trauma option

Each one has its own pros and cons and should be discussed with an xLife adviser to determine which is best for your situation.

Who offers bundled insurance?

Most insurers in Australia offer bundled insurance options, and xLife advisers can readily compare the top policies. We can also compare stand-alone policies versus bundled policies and help you select an option which best suits your needs.

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's trauma protection premium.

June 2011