Great news about your future premiums

We’ve listened to our customers and understand that affordability is important to you now and in the future. That’s why we’re changing the way your premiums are calculated as you get older, so you’ll pay less overall. Rest assured, these changes won’t reduce your cover or affect the great benefits and service you’ve come to expect.

Changes we’ve made to the way we calculate your premium

Your premium is calculated based on the age of each adult* on your policy. As a result, how your premium will be affected by these changes depends on the age of each adult* on the policy anniversary date between 1 June 2014 – 31 May 2015 inclusive.

To see how each adult* on your policy is affected, select the relevant age band^ below:

If an adult* is aged 70^ or under

The portion of the premium for that person will continue to go up every five years, with the last five-yearly increase after they turn 65#. After they turn 70#, the portion of the premium for that person will only go up by a gradual amount each year, instead of having a significant increase every five years. Plus after an adult* turns 79#, the portion of the premium for that person won’t go up again, unless you change your policy or cover increases. The changes for one adult* aged under 70# are illustrated here.

Graph assumes no change to your cover amount. Age at policy anniversary date. Graph is illustrative only and not to scale

If an adult* is aged 71^ to 75^

The portion of the premium for that person won’t go up until after they turn age 75#, unless you change your policy or cover increases. After they turn 75#, the portion of the premium for that person will only go up by a gradual amount each year, instead of having a significant increase after they turn 75#. Plus after an adult* turns 79#, the portion of the premium for that person won’t go up again, unless you change your policy or cover increases. The changes for one adult* aged 71# to 75# are illustrated here.

Graph assumes no change to your cover amount. Age at policy anniversary date. Graph is illustrative only and not to scale

If an adult* is aged 76^ or over

The portion of the premium for that person will go down on the policy anniversary date and won’t go up again, unless you change your policy or cover increases.


* Refers to an insured person for whom premiums are currently payable.
^ Refers to the age of the adult* on your policy anniversary date between 1 June 2014 and 31 May 2015 inclusive.
# Change will take effect on your policy anniversary date following this birthday.

Do you have more questions?

Below is some information that may help answer your questions about the pricing changes to your Over 50s Life Cover policy.

Why have you made changes to my policy?

We’ve listened to our customers and understand that as you get older the last thing you need is significant increases to your premiums.

So the good news is that we’ve been able to change the way your premium is calculated to make it more affordable, which means you’ll end up paying less than you would have.

You say I’ve made some choices about my policy, what choices were these?

You would have had the option to take out Inflation Protection.

As with most goods and services, funeral costs get more expensive over time. So to help ensure your payout remains adequate as funeral costs go up, you may have chosen to protect yourself against inflation. If you have Inflation Protection, your cover increases each year on your policy anniversary date by the increase in the Consumer Price Index (CPI) or 5%, whichever is greater. As you’d expect, your premium increases accordingly.

Inflation protection is generally automatically included but may be removed if requested.

I’m confused about when this change happens. On my birthday or the policy anniversary date?

The changes occur on your policy anniversary date. The age you are on your policy anniversary date helps determine the cost of your premium.

Do you backdate the premium amount payable to my birthday?

No. The change takes effect from your policy anniversary date.

What is a policy anniversary date?

The day and month you initially took out your policy.

How does this affect my cover amount?

The changes to the way we now calculate your premium will not affect your cover amount. Your cover amount will only change if you chose the Inflation Protection option on your policy.

How do you calculate what my premium is?

Factors which affect your premium are:

  • Your cover amount
  • The age of the people on your policy
  • The number of people covered by your policy
My premium has significantly dropped. Does my cover also go down?

No. Your cover amount stays the same even if we’ve reduced your premium which is great news for you.

So are you saying my premiums won’t go up again from age 79?

YES, when anyone on your policy turns 79, the portion of your premium for that person will stay level until they turn 90, after which their cover will continue for FREE. These changes take effect from the policy anniversary date after the relevant birthday.

Of course if you decide to change your cover amount, add more people to your policy or if your cover goes up due to Inflation Protection, then your premium amount will change accordingly.

Is this affecting only my Over 50s Life Cover policy? What about my other insurance plans with InsuranceLine? Will those premium rates be coming down too?

No. The changes only affect those with Funeral Plans that have Stepped Premiums bought before June 2014 and the Over 50s Life Cover policy.

My friend said you’ve written to her and said you are dropping her premiums. I also have funeral insurance but I didn’t get the letter?

It’s likely you are on level premiums or bought a policy after May 2014. The change only affects those who are on Stepped Premiums. It could also be that your policy anniversary is not due for some time. If your policy is going to be affected by the changes, we will be sending you notice about six (6) weeks before your policy anniversary date.

What do you mean no more premiums after I turn 90? Does that mean my cover will stop?

No, you still receive the same cover amount on your policy. You just don’t pay any more premium after you have turned 90 years of age.

You mention we get free cover after age 90. My partner is nearly 90 years old but I’m only 85. Do we both get free cover when he turns 90?

Once a person on your policy turns 90, the part of the premium associated with that person will stop. All other adults listed on the policy under 90 years of age will still need to pay a premium for their cover amount.

What is Inflation Protection? Do I have this?

As with most goods and services, funeral costs get more expensive over time. So to help ensure your payout remains adequate as funeral costs go up, you may have chosen to protect yourself against inflation. If you have Inflation Protection, your cover increases each year on your policy anniversary date by the increase in the Consumer Price Index (CPI) or 5%, whichever is greater. As you’d expect, your premium increases accordingly.

Inflation Protection is generally automatically included but may be removed if requested.

You mention government fees, duties, taxes or other charges may affect my premiums. What are these fees? Is this likely to happen soon?

These include duties and taxes such as stamp duty and GST. Currently, no changes have been announced that will affect your premiums.

Will this change to the way my premium is calculated affect my policy at claim time?

No, the change will not affect your policy payout. As long as your premiums are up to date and you’ve listed a beneficiary 18 years or older, payouts are generally within 24 hours of us receiving the completed claim information.

I’m happy with these changes. Do I need to do anything?

No, your premiums will continue to be collected on your policy anniversary date.

The good news is that you’ll end up paying less over time than you would have.

I’m not happy with the changes, what can I do?

Let’s review your policy and come up with a solution that you’re happy with.

Please call 1800 045 128 and we’ll be happy to help.