Accelerated
Accelerated means that your Trauma Cover or Total and Permanent Disability (TPD) benefit is linked to your Life Cover. If a claim is paid, the amount paid reduces the remaining Life Cover.
Accelerated means that your Trauma Cover or TPD Cover is linked to your Life Cover. If you make a successful Trauma or TPD claim, the payment comes from your Life Cover, reducing the amount that remains available for a future Life Cover claim.
For example, if you have $500,000 of Life Cover and $200,000 of accelerated Trauma Cover, a successful Trauma claim would pay $200,000. Your remaining Life Cover would then reduce to $300,000.
Because the insurer's overall potential payout is lower than with standalone policies, Accelerated Cover is generally more affordable. This can make it an attractive option for people who want comprehensive protection while keeping premiums within their budget.
Whether Accelerated Cover is the right choice depends on your personal circumstances. If maintaining the full amount of Life Cover after a Trauma or TPD claim is important, Standalone Cover may be more suitable. An adviser can help you understand the differences and choose the structure that best aligns with your financial goals and family needs.
Why It Matters
Understanding how Accelerated Cover works is important because a successful Trauma or TPD claim will reduce the amount of Life Cover available in the future. Knowing this helps you choose a policy structure that provides the right balance between affordability and long-term protection.
Common Misunderstandings
"Accelerated Cover is a separate policy."
No. It's a benefit that's linked to your Life Cover, rather than a separate standalone policy.
"A Trauma or TPD claim won't affect my Life Cover."
With Accelerated Cover, a successful claim generally reduces your remaining Life Cover by the amount paid.
"Accelerated Cover provides less protection."
Not necessarily. It provides the same type of protection, but the benefit is structured differently from Standalone Cover.
"Accelerated Cover is always the best option because it's cheaper."
Not always. While premiums are generally lower, it's important to consider whether reducing your Life Cover after a claim aligns with your long-term financial needs.
FAQs about Accelerated
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Accelerated Cover reduces your Life Cover after a Trauma or TPD claim, while Standalone Cover keeps your Life Cover unchanged.
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Because the insurer's total potential payout is lower than if the benefits were provided under separate standalone policies.
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This depends on the insurer and your policy. Changes may require underwriting.
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The best choice depends on your budget, financial commitments and how important it is to preserve your full Life Cover after a claim.
Choosing between Accelerated and Standalone Cover is an important decision when structuring your insurance. If you're unsure which option best suits your needs, talk to a New Vision Financial Services adviser. We'll explain the differences and help you build a protection plan that's right for you and your family.