Pinnacle Life recently announced special event benefits for its Life and Mortgage products. The benefit entitles policyholders to request increased levels of cover on the basis of changing life events, without requiring further medical evidence.
A 'special event' gives policyholders the opportunity to increase cover with no further questions asked regarding the insured person's health. You qualify for a special event increase if:
- the policyholders is aged 59 or less and has taken out or increased their mortgage within the past 3 months
- the insured person has married (including a civil union), divorced or
- the policyholder become a parent within the past 6 months.
Policyholders are entitled to 3 special event increases, with no more than 1 increase per year, provided that no single increase exceeds $250,000 and the cumulative total of all such increases doesn't exceed 50% of the cover when the policy was initially acquired.
Where the special event relates to a mortgage, the increase in cover can't exceed the amount by which your mortgage has increased. A special event increase is not available if the life insured is already loaded by more than 50% due to the insured person's health.
In the coming weeks, Pinnacle Life will be incorporating the special events wording into the documentation of standing policies and will contact current policyholders who may qualify. The special events program clause is already available for new policies issued from the Pinnacle Life website.
Current policyholders can contact Pinnacle Life directly with any questions about how the special events program may affect their current policies