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Life Insurance

What does the family live on when an income earner suddenly dies? How does a business survive when the owner or a key person dies? Who pays the hire purchase, credit card debts, funeral expenses, children's future education or mortgage etc.?

We all have a choice of trying to provide for the above events by ourselves, or by joining with others through an insurance company to share the risk at a minimal cost.

This insurance benefit provides a lump sum payment in the event of death. It is an essential foundation for anyone with a spouse or family who are dependent on the insured for the maintenance of their lifestyle. As a minimum all debts should be covered.

Built in features

  • Provides a lump sum insurance benefit of up to $1,000,000 using online application. (If more is required, a more complete application form needs to be completed – use the TotalCare Application here.)
  • Provides Terminal Illness, Bereavement Support and Childs Funeral benefits
  • Special events increase facility and Financial Advice benefit

Terminal Illness Benefit*

Pays up to 100% of the Life Cover benefit if a life assured is diagnosed as being terminally ill and unlikely to survive for 12 months. The Life Cover benefit will cease on payment of a Terminal Illness benefit.

Bereavement Support Benefit*

This benefit pays an immediate lump sum of $15,000 upon the death of a life assured. This benefit can be used for grief counselling, estate advice, flights and accommodation for family members to attend the funeral, or to offset funeral expenses, or whatever the executors deem appropriate at the time. This benefit is an early payment of part of their Life Cover benefit. The Life Cover benefit payable will be reduced by $10,000 on payment of this benefit.

Special Events Increase Facility*

When a life assured's financial responsibilities increase because they have a child (by birth or legal adoption), get married or enter into a civil union, become divorced or dissolve a civil union, move home and as a result take out or increase a home loan, or become responsible for the full-time care of a close relative they may write to Sovereign to request an increase to their sum assured. They do not need to produce any medical evidence when requesting an increase. A request must be made within 12 months of the relevant event happening, and the life assured must supply evidence of the occurence of that special event. There is a maximum of 3 increases per lifetime. The total increases cannot exceed 50% of the original Life Cover and each individual increase cannot exceed the lesser of $250,000 or the amount of home loan or increase in home loan. The life assured must be aged 50 years or under when you make the request and an increase in premium will occur.

Children's Funeral Benefit*

This benefit pays $2,000 if a child of the life assured aged between 3 and 10 years dies as a result of an accidental injury within 90 days of the injury happening. This payment will be deducted from the life assured's Life Cover Benefit. The premium will reduce in line with the reduction in sum assured.

Financial Advice Benefit*

Without any additional cost, a life assured can apply for reimbursement for fees paid up to $1,500 (including GST) for financial planning advice they receive within 3 months following the payment of a benefit. Reimbursement must be applied for within 3 months of receiving the benefit payment. The life assured must have received the advice from an adviser with a current financial adviser agreement with Sovereign Services Limited or a member of a financial services industry body approved by Sovereign.

Premium Rates Guaranteed

The premium rates are guaranteed for 1 year, or 10 years, to age 65 or to age 80 (depending on the premium type selected), and cannot be altered by Sovereign unless a life assured voluntarily makes alterations to the level of cover.

Renewable Cover to Age 100

Cover may be renewed to age 100 without further medical evidence.
*Please note that special conditions apply; please refer to the Policy Document

Additional Benefits

Future Insurability Option*

Future Insurability allows the life assured to increase their original sum assured without needing to provide further medical evidence. The original Life Cover can be increased by up to 20% or $100,000, whichever is greater every 3 years on the anniversary date. The total maximum increase is $1 million or twice the original sum assured; whichever is less. Every increase in cover will require an increase in premium. The benefit only applies to the Life Cover benefit. Sovereign will notify the policy owner of the entitlement to exercise this benefit before each third anniversary date.
*Please note that special conditions apply, please refer to the policy document.


Sovereign will not pay any benefit where the life assured dies or becomes terminally ill as a direct or indirect result of an intentional self-inflicted act (whether sane or insane) within 13 months of the risk commencement date or, if cover under this benefit has been reinstated, the date of reinstatement. This exclusion applies to any subsequent benefit increase.

Sovereign will not pay a children's funeral benefit if death directly or indirectly arises from an injury caused by a life assured, or the child's parents or guardian.

Would you like to work out how much Life Insurance you need? Click here.

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Sum to Insure

Deciding how MUCH insurance to buy is your first challenge!

Costello Financial Services offers free anonymous online calculators to help you determine your insurance requirements.

Use the following tool to obtain your personal estimate.   Estimate Life Insurance Requirement

When you are done estimating, the system will use your figures to give you a price quote.

Eligible Ages
Minimum age: 10
Maximum age: 70

Eligible Occupations

Cover Options
Level or CPl linked

Term of Cover
Renewable to age 100

Benefit Period
This is a once-only lump-sum payment.

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