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Living Benefit

Living Benefit


LPP vs Cover in your Super

Did you know cover you hold within the superannuation may not have a trauma component? As superannuation funds have not been permitted to offer trauma cover to new members since July 2014^. Watch our video to find out more. 

More about the Living Benefit

The ALI Loan Protection Plan 'Living Benefit' (also known as Critical Illness Insurance) pays a benefit if you recover or are recovering from one of the following serious conditions:

  • Alzheimer's Disease (dementia)
  • cancer
  • coronary artery bypass surgery
  • heart attack
  • kidney failure
  • loss of independent existence
  • paralysis
  • severe burn
  • stroke
  • total loss of hearing
  • total loss of sight

Waiting periods

There's a waiting period of 3 months from the commencement of your policy for cancer, coronary bypass artery surgery, heart attack and stroke. For all other conditions, there is no waiting period.

How much does it pay?

The benefit paid is based on the level of your Death Benefit cover on the date the condition is suffered.

Living Benefit generally pays 30% of your Death Benefit. You can ask us to amend it up to a maximum of 50% of your Death Benefit, though changing the benefit amount may affect your premiums.

Note that the amount you're covered for may change over the term of your cover due to automatic increases, or if you've asked to change your level of cover.

What happens once I make a claim?

The benefit money is paid directly to you (not your lender). Because we only pay one Living Benefit for each insured person, once that payment has been made, we reduce your Death and Terminal Illness Benefits by that same amount, with a corresponding reduction in your premiums.


Say you're covered for a Death Benefit of $600,000 and have a Living Benefit of 30%. Eleven months after taking out cover, you suffer a heart attack.

We would pay you a $180,000 Living Benefit.

Then, as a result of that payment, your Death Benefit would also be reduced by the same amount to become $420,000 and your premium adjusted accordingly.

Want to know more?

Get in touch with our customer service team on 1800 006 776.


^If your superannuation trauma cover commenced before 1 July 2014; You may be exempt from the changes and still entitled to trauma cover through your super fund. If you have rolled over your cover or your fund has been updated, you may lose the exemption. Check with your existing superannuation insurance provider if you're unsure.

Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.