Interim Cover

Interim Cover provides temporary cover while your life insurance company is assessing your policy application.

It is generally a built-in feature that comes as standard with your policy. However this might not always be the case and it is important to find out prior to applying for a policy as having interim cover can provide you with peace of mind while the insurer is considering your application for insurance.

How does Interim Cover work?

Upon your insurer receiving a completed application form, your interim cover will generally commence. In most cases it will be available for up to 90 days and will end:

  • When your policy application is accepted and commences
  • On the 90thday after your interim cover commences
  • If your policy application is declined
  • If your policy terms are not accepted by you within the required time frame
  • If you withdrawal your insurance policy application

Please note you will generally need to have provided to your insurer payment details for your policy.

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How much cover is provided?

The amount of cover provided will differ between life insurance companies and the type of cover you have applied for:

Life Insurance

Lesser of $1 million and the amount of cover applied for.

TPD Cover

May receive between $5,000 and $1 million of cover

Trauma Insurance

Up to $1,000,000 worth of cover may be available

Income Protection

You may be able to receive up to $10,000 per month for 12 months

When am I not eligible for interim cover?

If you have a current similar insurance policy with either the life insurance company you are applying to or another insurer.

If you currently have another application pending for an insurance policy which provides similar cover including temporary cover, with either the same life insurance company or another insurer.

If you have previously applied for cover and have had your application declined, deferred or postponed either with the same life insurance company you are applying to or another life insurance company.

If you do not provide to your broker a fully completed application with payment details and it has been fully submitted to the insurance company.

After you have compared your life insurance quotes, it is important to check with one of our specialists about interim cover and how you can qualify for it.

General exclusions:

Exclusions include:

  • If event which led to a claim occurs outside of Australia.
  • Suicide/Intentional self inflicted injury
  • Drugs/Criminal Activities
  • Act of war or military service
  • A pursuit or occupation which may cause a life insurance company to reject your application.

Also, generally it will only be available for the insurance type you applied for.

Why is it available for 90 days?

Generally, life insurance companies feel that 90 days is sufficient time to go through underwriting, however this process may take longer. If this occurs, your temporary cover will not be extended beyond the 90 days.

When is the benefit payable?

When the benefit is payable will differ between life insurance companies.  Please consult the relevant PDS or speak to one of our specialists.

How to claim

If you need to make a claim while on interim cover, please speak to our specialists or consult your PDS. Each life insurance company’s claims procedures will differ as they have different terms and conditions available.

Published: March 6, 2018

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