Interim Cover: Temporary Cover While Your Life Insurance Application Is Assessed
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What Is Interim Cover?
Interim cover is temporary insurance that may apply while an insurer assesses your application for life insurance or another eligible type of cover. Its purpose is to provide a level of protection during the period between submitting an eligible application and receiving the insurer’s decision.
Interim cover is not the same as having your full insurance policy in place. The benefits available are generally limited and subject to separate terms, conditions and exclusions. The exact cover available will depend on the insurer and type of insurance you have applied for.
In simple terms, interim cover may provide temporary protection while you wait for your insurance application to be assessed.
How Does Interim Cover Work?
Interim cover will generally commence once the insurer receives a completed application, provided you meet its eligibility requirements. Some insurers may also require additional information or documentation before cover begins.
The process generally works like this:
- You complete and submit your insurance application.
- The insurer receives the information required to assess your application.
- If you’re eligible, interim cover may commence while underwriting takes place.
- The insurer assesses your application and decides whether to offer you full cover.
- Interim cover ends when your full policy commences or another applicable ending condition is reached.
When Does Interim Cover Start?
The exact commencement requirements vary between insurers. For example, some insurers may offer interim accident cover once they receive a fully completed application form, a completed personal statement, and a completed premium deduction authority.
This means you shouldn’t assume you’re covered simply because you’ve requested a quote or started an application. Check the relevant insurer’s terms to confirm when your interim cover starts.
When Does Interim Cover End?
Interim cover is temporary and can end before the maximum cover period is reached. Depending on the insurer’s terms, this may happen when:
- Your full insurance policy is accepted and commences.
- You reach the maximum interim cover period.
- Your application is declined.
- You don’t accept the insurer’s offered terms within the required timeframe.
- You withdraw your insurance application.
How Much Interim Cover Can You Get?
The amount of interim cover available can vary significantly between insurers and products. The limits below reflect the types and amounts currently outlined on this page and shouldn’t be treated as limits that apply to every insurer.
| Type of insurance | Interim cover that may be available |
|---|---|
| Life insurance | The lesser of $1 million or the amount of cover applied for |
| TPD insurance | Between $5,000 and $1 million |
| Trauma insurance | Up to $600,000, depending on the insurer |
| Income protection | Up to $10,000 per month for 12 months |
The amount payable for an eligible claim may also depend on the cover you’ve applied for and the insurer’s specific interim cover conditions.
Who Is Eligible for Interim Cover?
Interim cover isn’t necessarily available to everyone who applies for insurance. You generally need to satisfy the insurer’s eligibility and application requirements before temporary cover can begin.
Based on the conditions outlined on the current page, interim cover may not be available if:
- You already have a similar insurance policy with the insurer you’re applying to or another insurer.
- You have another pending application that provides similar cover, including temporary cover.
- A previous application for cover has been declined, deferred or postponed by the same or another insurer.
- You haven’t provided a fully completed application with the required payment details for submission to the insurer.
Eligibility rules can differ, so check the relevant insurer’s documentation rather than assuming interim cover applies to your application.
What Isn’t Covered by Interim Cover?
Interim cover has exclusions, just like other forms of insurance. The exact exclusions depend on the insurer and product.
Examples of exclusions identified on the current page include claims connected with:
- Events occurring outside Australia.
- Suicide or intentional self-inflicted injury.
- Drugs or criminal activities.
- War or military service.
- Certain pursuits or occupations that may cause an insurer to reject an application.
Interim cover will also generally only apply to the type of insurance you’ve applied for. Always check the applicable PDS and interim cover terms for the complete list of exclusions.
Interim Cover vs Your Full Life Insurance Policy
One of the most important things to understand is that interim cover isn’t an early version of your full life insurance policy. It is separate temporary protection that may apply while the insurer decides whether to accept your application.
| Interim cover | Full life insurance policy |
|---|---|
| Temporary protection | Cover provided under your accepted policy |
| Applies during the application and assessment period | Applies once your policy commences |
| Limited benefits may apply | Benefits are based on the policy you’ve been issued |
| Separate limits and exclusions can apply | Subject to the terms, conditions and exclusions of your policy |
| Ends when specified conditions are met | Continues while your policy remains in force, subject to its terms |
This distinction is important because being eligible for interim cover doesn’t mean your application for the full policy has been accepted.
How Long Does Interim Cover Last?
Interim cover may be available for up to 90 days, depending on the insurer’s terms. However, this doesn’t mean you’re guaranteed 90 days of temporary protection. Cover can end earlier if your application is accepted or declined, you withdraw your application or another ending condition applies.
If the underwriting process takes longer than the maximum interim cover period, your temporary cover may expire before a decision is made.
How Do You Make an Interim Cover Claim?
If an insured event occurs while you believe interim cover is in place, contact the insurer or your insurance broker to begin the life insurance claim process. The insurer will assess whether interim cover was active and whether the circumstances meet its terms and conditions.
The exact life insurance claims process differs between insurers, and you may need to provide supporting information or documentation. Check the relevant PDS and interim cover documentation for the insurer’s specific claim requirements.
What Should You Check Before Relying on Interim Cover?
Before assuming you have temporary protection, check:
- Whether interim cover is included with your application.
- When the cover starts.
- Which events are covered.
- The maximum benefit available.
- How long the cover can last.
- Which exclusions apply.
- When the cover will end.
- Whether you meet the insurer’s eligibility requirements.
These details can differ between insurers and products, so refer to the relevant PDS and interim cover terms for information specific to your application.
Frequently Asked Questions About Interim Cover
Does interim cover cost extra?
Interim cover may be provided as complimentary temporary cover while an eligible application is being assessed. Generally, insurers offer interim accident cover free of charge. Whether this applies will depend on the insurer and product you’re applying for.Is interim cover automatically included when I apply for life insurance?
Not necessarily. You need to meet the insurer’s eligibility and application requirements, and interim cover isn’t offered on the same terms by every insurer or product. Check when cover starts before assuming you’re protected.Is interim cover the same as life insurance?
No. Interim cover is temporary protection that may apply while your application is being assessed, whereas your life insurance policy provides the cover accepted by the insurer once the policy commences.Does interim cover only cover accidents?
The events covered depend on the insurer and product. Some insurers specifically provide interim accident cover, meaning the temporary protection may be limited to eligible accidental events rather than providing all the benefits of the policy you’re applying for.Can interim cover last longer than 90 days?
Interim cover is generally available for up to 90 days and won’t be extended beyond this period. Check the applicable insurer terms because duration and ending conditions can vary.
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