Learn About Linking Life Insurance Covers

Linking covers can be more cost-effective than holding separate policies. Essentially any claim payment made on a linked cover will reduce the benefit available under the primary cover. This option could make sense for you if you are covering large one-off expenses, such as a mortgage which you only need under one cover.

With Life as the primary cover you can add linked Critical Illness and/or TPD. With Critical Illness as the primary cover you can add linked TPD cover.

Let's look at the example of $500,000 Life Cover with linked TPD cover of $500,000. You become total and permanently disabled and make a successful claim for $200,000 of your TPD benefits. The remaining death benefit under the Life cover is now $300,000.

You can add extra cost options to top the life cover back up to the original cover amount after a linked benefit is paid.

Buy Back benefit - After some time (often a year after the linked claim), the insurance company will offer you this benefit, which will restore your Life Cover to the original amount, for an additional premium.

Double TPD Benefit - this option will reinstate your Life Cover after a linked TPD claim, plus the Life cover premiums will normally be waived whilst you are totally and permanently disabled. (Provided you survive the claimable TPD event).