Standalone
Standalone where Trauma Cover or Total and Permanent Disability (TPD) Cover operates independently from your Life Cover. This means making a claim doesn't reduce your Life Cover benefit.
Standalone means your Trauma Cover or TPD Cover exists as its own separate insurance policy rather than being linked to your Life Cover. If you make a successful claim, your Life Cover remains unchanged, providing continued financial protection for your loved ones.
For example, if you have $500,000 of Life Cover and $200,000 of standalone Trauma Cover, a successful Trauma claim would pay the $200,000 while your full $500,000 of Life Cover would remain in place.
This differs from Accelerated Cover, where a Trauma or TPD claim is paid by reducing your Life Cover. Using the same example, a $200,000 accelerated Trauma claim would reduce the remaining Life Cover to $300,000.
Because Standalone Cover preserves your Life Cover after a claim, premiums are generally higher than an accelerated option. Whether the additional cost is worthwhile depends on your financial goals, family circumstances and the level of protection you want to maintain.
An adviser can help you compare standalone and accelerated options to ensure your insurance is structured in a way that best suits your needs.
Why It Matters
A serious illness or permanent disability can have long-term financial consequences. Standalone Cover allows you to receive a lump sum to help with your recovery while keeping your Life Cover intact, ensuring your family continues to have the protection they rely on.
Common Misunderstandings
"Standalone Cover provides more conditions than Accelerated Cover."
Not necessarily. The main difference is how the benefit is structured, not what conditions are covered.
"A claim will reduce my Life Cover."
No. With Standalone Cover, your Life Cover generally remains unchanged after a successful claim.
"Standalone Cover is always the best option."
Not always. While it provides greater protection, it also usually comes with higher premiums than Accelerated Cover.
"I can only have Standalone Cover with Life Insurance."
No. Standalone Trauma or TPD Cover can often be held independently, depending on the insurer and policy.
FAQs about Standalone
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Standalone Cover doesn't reduce your Life Cover when a claim is paid, while Accelerated Cover does.
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Because the insurer may pay both the Trauma or TPD benefit and the full Life Cover benefit separately if both claims occur.
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Not necessarily. The right structure depends on your budget, financial commitments and long-term protection needs.
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This depends on the insurer and your policy. Changing your cover may require underwriting.
Choosing between Standalone and Accelerated Cover can have a significant impact on your financial protection. If you're unsure which option is right for you, talk to a New Vision Financial Services adviser. We'll help you understand the differences and recommend a structure that aligns with your goals and gives you confidence for the future.