Standalone vs Accelerated
Standalone and Accelerated describes how Trauma or TPD Cover is structured alongside your Life Cover.
Standalone provides a separate benefit, while Accelerated uses part of your Life Cover to provide the Trauma or TPD benefit.
Trauma Cover and TPD Cover can be structured in different ways, and understanding the difference is important because the structure can affect how much Life Cover remains after a claim.
With Standalone, the Trauma or TPD benefit is generally separate from your Life Cover. If you make a valid Trauma or TPD claim, the payment is made under that specific policy benefit and your Life Cover is generally unaffected. This means you can potentially receive a Trauma or TPD payment while retaining your full Life Cover, subject to the terms of your policy.
With Accelerated, the Trauma or TPD benefit is linked to your Life Cover. If you make a valid claim, the payment is generally accelerated from your Life Cover amount. This means the amount of Life Cover available after the claim will usually be reduced by the amount that has been paid.
For example, if you have $500,000 of Life Cover and $100,000 of Accelerated Trauma Cover, a valid $100,000 Trauma claim would generally reduce the remaining Life Cover to $400,000. With $100,000 of Standalone Trauma Cover, the Trauma payment would generally be separate from the $500,000 Life Cover.
The exact structure, claim rules and how subsequent cover operates can vary between insurers and policies. Some policies may also have reinstatement or other options following a claim.
The important point is that Trauma Cover is not necessarily structured the same way across every policy.Understanding whether your cover is Standalone or Accelerated can help you understand what happens to your Life Cover if you make a claim.
Why it matters
The difference can become particularly important at claim time. A Trauma or TPD payment may provide valuable financial support when you need it, but with Accelerated covers, that payment may also reduce the amount of Life Cover remaining under the policy.
Knowing how your cover is structured means you can better understand the protection available to you both before and after a claim.
Common Misunderstandings
"Trauma Cover is Trauma Cover, regardless of how it's structured."
In a way yes. The important part is to understand that Trauma Cover can be structured in different ways, and the structure can affect what happens to your Life Cover following a claim.
"If I claim on my Trauma Cover, I will still have the same amount of Life Cover."
Not necessarily. With when your Trauma Cover is Accelerated, the Trauma payment would reduce your Life Cover.
"Standalone Cover reduces my Life Cover."
Generally, no. Standalone is designed to provide a separate benefit from your Life Cover, subject to the policy terms.
"Accelerated Cover is always better because it costs less."
Not necessarily. Premiums and benefits depend on the insurer, policy structure and individual circumstances. It's important to understand what you're getting in return for the premium.
"This only applies to Trauma Cover."
No. Similar structures can also apply to TPD Cover, depending on the insurer and policy.
FAQs about Standalone vs Accelerated
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Standalone provides a separate Trauma or TPD benefit that is generally independent of your Life Cover.
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Accelerated links the Trauma or TPD benefit to your Life Cover. A claim generally accelerates part of the Life Cover, reducing the amount that remains.
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Generally, the Life Cover is reduced by the amount paid under the Accelerated benefit, subject to the policy terms.
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Generally, yes. Because the benefit is separate, a valid claim will not normally reduce your Life Cover, although the exact policy terms need to be checked.
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Yes. The structure available depends on the insurer and policy.
When comparing Trauma or TPD Cover, it's important to look beyond the amount of cover and understand how the benefit is structured. If you're unsure whether your existing cover is Standalone or Accelerated, talk to a New Vision Financial Services adviser. We'll explain how your cover works and what could happen to your Life Cover if you need to make a claim.