Before settling on coverage from a specific insurance company, it's always wise to evaluate the options available in the market. You can even go further to compare products and services from different countries, just to see how Australia compares to the rest of the world. Here is a comparison between AARP (US based) and One Path (in Australia) that will give you an insight on such differences.
Life Insurance AARP
AARP life insurance can be bought from New York Life. This coverage is specifically targeted at a population aged 50 years and over. It carries various benefits, aimed at providing the best offers to the targeted group.
A Policy holder can benefit from premium waivers if he/ she is confined to a nursing home, under direction by a qualified doctor. This benefit usually applies following 180 consecutive days in such confinement. The best thing about such a benefit is the fact that the period of premium waiver would not depend on the period of home confinement. Such a waiver can last up to 80 years of age during your stay in a nursing home. However, various other conditions would apply in order to qualify for such a benefit.
The basic requirements that must apply in the nursing home in order to qualify for premium waiver include:
- Such a nursing home should primarily provide skilled nursing care with supervision from a licensed physician.
- Facilities that are used primarily for rest or custodial care do not qualify to be categorized as nursing homes
- Facilities used to care for alcoholics and drug addicts also don't qualify
- Facilities caring for and treating patients with mental disorders or diseases don't qualify
Life Insurance One Path
One Path's life insurance program caters to the general population. This starts at a minimum entry age of 15 years and a maximum of 75 years under the stepped premium type; whereas the level premium type has a similar minimum entry age, but a maximum of 60 years. Take note that the maximum entry age for life cover under superannuation is 74 years.
Various benefits also do apply to this coverage. One of which is the free counseling offered to family members in the event that a policy holder passes on. This helps the bereaved to better handle the grieving process much better, which can never be fully compensated by any amount of benefit payment.
Actually this free counseling benefit would not just apply during death, but also in the event of terminal illness. In this instance, counseling would be provided to both policy holder and immediate family members.
Just as you are able to pay premiums for coverage in installments, you can also choose to receive benefits in installments. This would help in safeguarding financial decisions made by family members when receiving claim benefits, since they may not properly handle lump sum payments. An even better aspect of this installment claim payment is the "Value Protector Option" that sets installment payments to increase on an annual basis. Such an increase safeguards against rising inflation.
Kerrie Peacock regularly analyses key trends within the personal insurance industry. She also shares her keen insights on the most critical issues. For more details, check out www.mecovered.com.au/life-insurance-aarp.