Sum Insured

The sum insured is the predetermined monetary value of your insurance cover, representing the maximum lump sum payable under the policy. It is fixed in the policy schedule and disclosed in the PDS before purchase.

What the sum insured pays out

The payment trigger differs by product:

• Life insurance: the lump sum paid to your beneficiaries on death (or terminal illness diagnosis).
• TPD (Total and Permanent Disability): the lump sum paid if you become permanently unable to work under the policy's TPD definition.
• Trauma cover: the lump sum paid on diagnosis of a specified critical illness listed in the policy.

Changing your sum insured over time

Most Australian policies let you adjust cover during the policy life:

• Increase the sum insured: usually requires new underwriting.
• Decrease the sum insured: typically without reassessment.
• Indexation: automatic annual CPI increases to maintain purchasing power.
• Guaranteed insurability options: pre-agreed increases at life events (marriage, mortgage, child) without health checks.

Comparing policies

When comparing premiums between insurers, confirm you are comparing equivalent sums insured. Premium differences may simply reflect different coverage amounts rather than genuine value differences. Australian regulations require insurers to state the sum insured clearly in the policy schedule and PDS.