HCF

Key Information – HCF Life Insurance

Insurer: HCF Life Insurance Company Pty Limited ABN: 37 001 831 984 AFSL: 227868 Distributor: HCF Life Insurance Company Pty Limited (part of the HCF Group)

Types of Cover Generally Offered:

• Life Protect Insurance (Death Cover & Terminal Illness)
• Income Protect Insurance
• Critical Illness Cover
• Personal Accident Insurance
• Cash Back Cover
• Kids' Accident Cover

Target Market: Australian Residents Individuals seeking life and recovery insurance to complement health cover HCF health insurance members (who may be eligible for discounts) Individuals looking for straightforward insurance options without complex medical checks for some products

Key Features:

• Range of "Recover Cover" products addressing various life events.
• Life Protect Insurance offers a lump sum on death or terminal illness, with potential advance payment.
• Income Protect provides income replacement during periods of disability.
• Critical Illness Cover offers lump sum payouts upon diagnosis of specified serious illnesses.
• Personal Accident Insurance supports recovery costs from accidents.
• Cash Back Cover provides payments for specific accidents and illnesses.
• Kids' Accident Cover offers financial support for common childhood injuries.
• Fast claims processing (typically within 5 days of receiving all required information).
• Potential premium discounts for HCF health insurance members.
• Not-for-profit ethos, reinvesting profits for members.
• Some policies offer additional support services like grief counseling.

Premium Structure: Premium structures vary depending on the specific product. Some, like Life Protect Insurance, may have stepped premiums that increase with age.

Important Considerations:

• Maximum cover limits may apply to certain products.
• Waiting periods may apply, such as the 90-day waiting period for Critical Illness Cover for pre-existing conditions or illnesses within the first 90 days.
• Exclusions apply to policies (e.g., suicide within the first 13 months for Life Protect Insurance).
• Be aware of any ongoing regulatory matters (e.g., the ASIC lawsuit regarding unfair contract terms).
• Customers should carefully review the Product Disclosure Statement (PDS) for full details on features, benefits, limitations, exclusions, and their duty of disclosure.

HCF Life Insurance – History and Milestones

Key Milestones:

• 1932: The Hospitals Contribution Fund of Australia (HCF), the parent company of HCF Life, is established as the 'Metropolitan Hospitals Contribution Fund of New South Wales'.
  
• 1980: HCF becomes the first Australian health fund to establish its own life insurance business, HCF Life Insurance Company Pty Limited. This move aimed to provide members with financial protection beyond traditional health insurance, focusing on recovery needs.
  
• March 1981: HCF Life launches its first product, a term life insurance offering.
  
• Early Years: HCF Life gradually expands its product range to include income protection and trauma insurance.
  
• Accident Cover Innovation: HCF Life introduces a unique suite of accident-focused products designed to complement HCF health insurance by covering often unexpected recovery-related expenses.
  
• "Recover Cover" Philosophy: HCF Life develops its "Recover Cover" philosophy, emphasizing products that support members' financial well-being during recovery from accidents, illnesses, and other life events.
• Cash Back Cover: HCF Life introduces the Cash Back Cover product, linking accident and trauma cover to provide a general level of financial protection.
  
• Critical Illness Cover: The company adds Critical Illness Cover to its portfolio, providing lump sum payments upon diagnosis of specified serious illnesses.
  
• Ongoing Development: HCF Life continues to evolve its product offerings, including Life Protect Insurance, Income Protect Insurance, Personal Accident Insurance, and Kids' Accident Cover, refining them to meet the diverse needs of its members.
  
• Focus on Member Needs: As part of a not-for-profit organization, HCF Life maintains a focus on understanding and meeting the needs of HCF members, often offering benefits like premium discounts.
  
• Fast Claims Processing: HCF Life emphasizes efficient claims handling, aiming to pay most claims quickly upon receiving the necessary information.
  
• Industry Recognition: HCF Life's "Recover Cover" products have received external recognition, such as awards for stand-alone trauma and accidental injury cover.
  
• 2022: HCF celebrates its 90th anniversary, highlighting HCF Life's role since 1980 in expanding the fund's support for members' overall financial health and well-being beyond traditional health insurance.
  
• Present Day (2025): HCF Life continues to operate as a wholly-owned subsidiary of HCF, offering a range of life and recovery insurance products to Australians, with a strong connection to its not-for-profit heritage and focus on member benefits.

HCF Life Insurance – Key Strengths

Strong Connection to HCF: Being a wholly-owned subsidiary of HCF, Australia's largest not-for-profit health fund, provides a strong brand association and access to a large existing member base. This can lead to trust and easier customer acquisition.

Not-for-Profit Ethos: Operating on a not-for-profit basis means that profits are reinvested to benefit policyholders through potentially lower premiums, enhanced product features, or improved services. This aligns with a customer-centric approach.

Complementary Product Offering: HCF Life's "Recover Cover" suite is specifically designed to complement health insurance by addressing financial needs arising from death, disability, serious illness, and accidents, which may not be fully covered by health funds. This provides a holistic approach to financial protection.

Focus on Recovery: Their emphasis on "Recover Cover" highlights a unique selling proposition, focusing on the financial aspects of getting back on track after unexpected life events, which can resonate with individuals concerned about out-of-pocket expenses beyond medical treatment.

Simplified Processes: HCF Life often emphasizes straightforward application processes, with some products not requiring complex medical checks, making it more accessible for certain individuals.

Fast Claims Processing: A stated commitment to efficient claims handling, with most claims reportedly paid within five days of receiving complete information, enhances customer satisfaction and trust.

Potential Member Discounts: Offering premium discounts to eligible HCF health insurance members provides a tangible benefit and strengthens the value proposition for existing HCF customers.

Range of Cover Options: The diverse suite of products, including life, income protection, critical illness, and various accident covers, allows customers to choose the level and type of protection that best suits their individual needs and circumstances.

Additional Support Services: The inclusion of additional services in some policies, such as grief counseling and legal/tax advice helplines with Life Protect Insurance, adds value beyond the core financial benefit.

Established History: Having been in operation since 1980, HCF Life has a long-standing presence in the Australian life insurance market, providing a degree of stability and experience.

HCF Life Insurance - Cover Amount Ranges

• Life Protect Insurance: Offers cover from $100,000 up to $1.5 million. The maximum amount you can apply for depends on your age at the time of application:
  • Ages 18-45: Up to $1,500,000
  • Ages 46-55: Up to $1,000,000
  • Ages 56-65: Up to $500,000
  • An advance payment of $15,000 from your insured benefit is also available to help with immediate expenses.
    
• Income Protect Insurance: Provides a monthly benefit of up to 70% of your average monthly income, with a maximum of $7,500 per month, for up to 12 months.
  
• Critical Illness Cover: Offers two levels of cover:
  • $25,000 cover level: Pays out amounts ranging from $4,000 to $25,000 depending on the specific illness and treatment.
  • $50,000 cover level: Pays out amounts ranging from $8,000 to $50,000 depending on the specific illness and treatment.
• Personal Accident Insurance: Has two levels of cover with varying payout amounts for specific injuries and accidental death:
  • $25,000 cover level: Pays from $250 to $7,500 for particular accidental injuries and $25,000 for accidental death. The maximum benefit payable for all injuries from the same accident is $7,500.
  • $50,000 cover level: Pays from $500 to $15,000 for particular accidental injuries and $50,000 for accidental death. The maximum benefit payable for all injuries from the same accident is $15,000.
    
• Cash Back Cover: Provides a $5,000 cash payment for specific accidents requiring surgery or a range of serious illnesses. Multiple claims can be made up to a maximum total benefit of $20,000 for singles and $40,000 for families.
  
• Kids' Accident Cover: Provides a cash payment for common injuries experienced by children under 17. The specific payout amounts for different injuries are not detailed as a range but rather as a benefit for defined injury types.

Sustainability & Corporate Responsibility – HCF Life Insurance

HCF, as Australia's largest not-for-profit health fund (and the parent company of HCF Life Insurance), increasingly emphasizes sustainability and corporate responsibility across its operations. Their approach integrates environmental, social, and governance (ESG) considerations. Here’s a breakdown of their key initiatives:

Environmental Sustainability:

• Commitment to Renewable Energy: As of July 2022, HCF shifted to 100% renewable energy across all its office and frontline locations, demonstrating a commitment to reducing its carbon footprint.
• Carbon Footprint Measurement: HCF is actively measuring its carbon footprint as a foundational step towards setting a net-zero commitment. Their aim is to be net-zero for Scope 1 and 2 emissions by 2025 and Scope 3 by 2040.
• Greenhouse Gas Emissions Assessment: In 2024, HCF completed a Green House Gas emission assessment to better understand and manage their environmental impact.
• Partnerships for Environmental Conservation: HCF has a history of environmental philanthropy and creating partnerships to support environmental sustainability, although some examples provided are from the Hawai'i Community Foundation.
• Addressing Air Pollution: HCF's "Health Agenda" has featured articles discussing the impact of air pollution and potential solutions, indicating an awareness of environmental health factors.

Social Responsibility:

• Focus on Health and Wellbeing: HCF's core vision is to make healthcare understandable, affordable, high quality, and member-centric. Their sustainability strategy includes improving health and social outcomes for their stakeholders.
• Addressing Social Determinants of Health: HCF has a Social Sustainability Framework with a mission to build healthier communities by addressing social issues that impact health outcomes.
• Partnership with the Royal Flying Doctor Service (RFDS): A major national partnership to improve healthcare access and outcomes for those in rural and remote communities.
• Partnership with The Smith Family: A three-year partnership supporting disadvantaged young Australians through education, recognizing education's role in breaking the cycle of poverty and improving long-term health outcomes.
• Support for Netball Australia: A partnership aimed at improving the health and wellbeing of Australians, particularly young females, by encouraging active lifestyles.
• Support for the Victor Chang Cardiac Research Institute: Partnering to provide free heart health checks to members.
• Community Involvement and Volunteering: HCF encourages its employees to volunteer and supports various community organizations. They recognize the health benefits of volunteering and giving back.
• Diversity and Inclusion: HCF is committed to fostering an inclusive and diverse workplace across various dimensions, including gender, ethnicity, and abilities. They have Diversity Employee Reference Groups to promote belonging and equal opportunity.
• Reconciliation Action Plan (RAP): In early 2024, HCF launched its Reflect RAP, signifying a long-term commitment to working in partnership with Aboriginal and Torres Strait Islander peoples.

Corporate Governance and Ethical Practices:

• Strong Corporate Governance Framework: HCF emphasizes a strong corporate governance framework to ensure transparency, accountability, and the protection of stakeholder interests.
• Risk Management and Compliance: HCF has a Risk, Compliance & Sustainability Committee and actively works to improve its risk management capabilities and culture.
• Ethical Investment Considerations: While not explicitly detailed as an "ethical investment policy," HCF's not-for-profit nature and focus on member benefits suggest a responsible approach to managing investments. Their investments are managed according to a Board-approved Investment Policy and Strategy.
• Modern Slavery Statement: HCF Group has a Modern Slavery Statement outlining their commitment to fair labor practices within their operations and supply chain, taking a risk-based approach to identify and address potential risks.

HCF demonstrates a growing commitment to sustainability and corporate responsibility, embedding these principles across environmental impact reduction, social initiatives focused on improving health and community well-being, and strong corporate governance practices. Their not-for-profit structure inherently aligns with a focus on member and community benefit.

HCF Life Insurance - Pricing and Premiums

• Risk-Based Pricing: Like most life insurers, HCF Life calculates premiums based on the assessed risk of a claim. Factors that increase risk (e.g., older age, smoking, pre-existing health conditions, hazardous occupations or hobbies) generally lead to higher premiums.
  
• Cover Amount: The amount of cover you choose significantly impacts your premium. Higher benefit amounts will result in higher premiums.
  
• Policy Type: The type of life insurance cover (e.g., Life Protect, Income Protect, Critical Illness) has its own pricing structure based on the likelihood and potential size of a claim.
  
• Premium Structure:
  • Stepped Premiums: For some products like Life Protect Insurance, premiums may increase each year as you age. The increases tend to become more significant as you get older.
  • Level Premiums: While not explicitly detailed as a standard option for all products, some insurers offer level premiums that remain relatively stable over a set period or the life of the policy, although the initial cost might be higher than a stepped premium. You would need to confirm if this is an option with HCF Life for specific products.
  • Non-Age Based Premiums: Some products like Cash Back Cover and Personal Accident Insurance may have premiums that don't increase with age.
    
• Payment Frequency: HCF may offer discounts for paying premiums annually or semi-annually compared to monthly installments.
  
• Inflation Increases: For some policies like Life Protect Insurance, an automatic inflation increase of the insured benefit (up to 5% per year) is offered, which will also lead to a corresponding increase in premiums. You can usually opt out of this.
  
• Discounts: As mentioned in the "Special Promotions and Discounts" section, HCF health insurance members may receive a 10% discount on Life Protect Insurance premiums. Other promotional discounts may also be available from time to time.

Indicative Pricing and Premium Information (Based on Publicly Available Information as of late April 2025):

• Life Protect Insurance:
  • Cover starts from $100,000 up to $1.5 million, depending on age.
  • Premiums are influenced by age, gender, smoking status, insured benefit amount, health, and lifestyle.
  • Eligible HCF members may receive a 10% discount.
  • An online quote tool is available on the HCF website for an initial estimate.
    
• Income Protect Insurance:
  • Provides up to 70% of your average monthly income (max $7,500 per month).
  • Premiums are based on age, gender, smoking status, occupation, weight-to-height ratio, insured benefit amount, and inflation.
  • Cover is available for those aged 18-60, expiring at 65.
    
• Critical Illness Cover:
  • Offers cover levels of $25,000 and $50,000, with payouts varying by illness.
  • Premiums increase in 5-year age bands.
  • Cover is available for those aged 18-54, expiring at 65.
  • Indicative starting premium mentioned as low as $2.30 per week for a single on the $25,000 cover level (for ages 18-34).
    
• Personal Accident Insurance:
  • Offers $25,000 and $50,000 cover levels for specific injuries and accidental death.
  • Premiums do not increase with age.
  • Indicative starting premium mentioned as low as $3.20 per week for the $25,000 cover level.
    
• Cash Back Cover:
  • Provides a $5,000 cash payment for specific events.
  • Premiums do not increase with age.
  • Starting premiums mentioned from $3 per week for singles and $6 per week for families.
    
• Kids' Accident Cover:
  • Provides cash payments for common childhood injuries.
  • Premium is per child and has two age bands (0-16 and 17-22), increasing at age 17.
  • Indicative premium mentioned as low as $1.25 per week per child (for children under 17).

HCF Life Insurance - Product Disclosure Statement

1. Life Protect Insurance

• Purpose: Designed to financially support your family if you're diagnosed with a terminal illness or pass away.
• Benefits: Pays a lump sum benefit, ranging from $100,000 to $1.5 million, in the event of death or terminal illness. It also offers an advance payment of $15,000 to help with immediate expenses.
• Eligibility: Available to Australian Permanent Residents aged 18-65. Cover expires at age 99.
• Key Features:
  • Simplified application process with no complex medical checks.
  • Flexibility to change cover amount as life changes.
  • 10% premium discount for eligible HCF members.
  • Worldwide coverage for temporary travel abroad.

2. Personal Accident Insurance

• Purpose: Provides financial help to recover from accidents.
• Benefits: Pays cash benefits for specific injuries and accidental death. Two levels of cover are available: $25,000 and $50,000.
• Eligibility: Available to Australian Permanent Residents aged 55-74. Cover expires at 85.
• Key Features:
  • Flexible cash payments.
  • Fast claim processing.
  • Easy application with no complex medical checks.

3. Kids' Accident Cover

• Purpose: Provides financial support for children's recovery from accidents.
• Benefits: Pays cash for various injuries resulting from accidents, such as burns, broken bones, and permanent disabilities.
• Eligibility: Available to parents or legal guardians of children under 17, who are Australian Permanent Residents. Cover expires when the child turns 22.
• Key Features:
  • Flexible cash payments.
  • Fast claim processing.
  • Simple application process.

4. Income Protect Insurance

• Purpose: Helps cover living expenses when you can't work due to illness or injury.
• Benefits: Pays up to 70% of your average monthly income (up to $7,500 per month) for up to 12 months.
• Eligibility: Available to Australian Permanent Residents aged 18-60. Cover expires at 65.
• Key Features:
  • Flexible cash payments.
  • Fast claim processing.
  • Simple application process.

5. Critical Illness Cover

• Purpose: Provides financial support upon diagnosis of a specified critical illness.
• Benefits: Pays a lump sum cash benefit, with two levels of cover: $25,000 and $50,000, for specific conditions.
• Eligibility: Available to Australian Permanent Residents aged 18-54. Cover expires at 65.
• Key Features:
  • Flexible cash payments.
  • Fast claim processing.
  • Simple application process

IMPORTANT NOTE: This information is general information only, which means it doesn't consider your individual objectives, financial situation or needs. You should consider the appropriateness of this information to your situation before acting on it. Make sure you compare different life insurance providers in the market.

HCF - Target Market Determination

Personal Accident Insurance

Personal Accident Insurance is designed to provide a lump sum cash benefit to consumers seeking financial protection in the event of specified injuries or accidental death. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 26 July 2024

Issuer: HCF Life Insurance Company Pty Ltd (HCF Life)

Distributor: Not explicitly stated in the TMD.

Target Market

Personal Accident Insurance is tailored for consumers who:

• Seek personal accident insurance products.
• Want to insure against the risk of financial loss due to accidental injury or death.
• Are aged 55-74.

Detailed Key Features

Personal Accident Insurance offers:

• Lump sum cash benefits in 2 levels of cover: $25,000 or $50,000.
• Benefits for specified injuries or accidental death.
• Multiple claims up to the selected cover level.

When Personal Accident Insurance Might Not Be Suitable

The product may not be suitable for individuals who:

• Are outside the eligible age range (55-74).

Life Protect Insurance

Life Protect Insurance is designed to provide financial protection to consumers seeking to mitigate risks associated with death and terminal illness. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 26 July 2024

Issuer: HCF Life Insurance Company Pty Ltd (HCF Life)

Distributor: Not explicitly stated in the TMD.

Target Market

Life Protect Insurance is tailored for consumers who:

• Seek life insurance products.
• Want to insure against the risk of death or terminal illness.
• Need financial protection to provide for loved ones, cover debts, and manage financial liabilities in the event of death or terminal illness.
• Are aged 18-65.

Detailed Key Features

Life Protect Insurance offers:

• A lump sum cash benefit up to $1.5 million if the insured person dies or is diagnosed with a terminal illness (with a life expectancy of less than 24 months).
• Cover amounts from $100,000 to $1.5 million, with the maximum cover amount based on age at application.

When Life Protect Insurance Might Not Be Suitable

The product may not be suitable for individuals who:

• Are outside the eligible age range (18-65).

Kids' Accident Cover

Kids' Accident Cover is designed to provide financial protection to consumers seeking to mitigate the financial impact of their children suffering specified injuries due to accidents. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 26 July 2024

Issuer: HCF Life Insurance Company Pty Ltd (HCF Life)

Distributor: Not explicitly stated in the TMD.

Target Market

Kids' Accident Cover is tailored for consumers who:

• Seek accident insurance products for children.
• Want to insure against the risk of financial loss due to their children experiencing specified injuries from accidents.
• Are parents or guardians of children under 17.

Detailed Key Features

Kids' Accident Cover offers:

• A lump sum cash benefit to the policyholder if their child suffers a specified injury as a result of an accident.
• Coverage for injuries such as severe burns, broken bones, and specified permanent disabilities.
• Multiple claims up to $100,000.

When Kids' Accident Cover Might Not Be Suitable

The product may not be suitable for individuals who:

• Are not parents or guardians of children under 17.
• Whose children are 17 or older.

Critical Illness Cover

Critical Illness Cover is designed to provide financial protection to consumers seeking to mitigate the financial impact of being diagnosed with specified critical illnesses. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 26 July 2024

Issuer: HCF Life Insurance Company Pty Not explicitly stated in the TMD.

Ltd (HCF Life)

Distributor: Target Market

Critical Illness Cover is tailored for consumers who:

• Seek critical illness insurance products.
• Want to insure against the risk of financial hardship resulting from specified critical illnesses.
• Are aged 18-54.

Detailed Key Features

Critical Illness Cover offers:

• Lump sum cash benefits in 2 levels of cover: $25,000 or $50,000.
• Benefits paid for specified illnesses.
• Multiple claims up to the selected cover level.

When Critical Illness Cover Might Not Be Suitable

The product may not be suitable for individuals who:

• Are outside the eligible age range (18-54).

Important Notes:

• Consumers should refer to the full Product Disclosure Statement (PDS) for detailed information about the product, including terms, conditions, and exclusions.

Cash Back Cover

Cash Back Cover is designed to provide financial support to consumers facing specific medical events such as accidents requiring surgery or serious illnesses. It is essential to understand that this overview is based on the Target Market Determination; for comprehensive product details, consumers should consult the official Product Disclosure Statement (PDS).

TMD Effective Date: 26 July 2024

Issuer: HCF Life Insurance Company Pty Ltd (HCF Life)

Distributor: Not explicitly stated in the TMD.

Target Market

Cash Back Cover is tailored for consumers who:

• Seek cover for specific medical events.
• Want financial support in the event of accidents requiring surgery or specified serious illnesses.
• Are aged 18-64.

Detailed Key Features

Cash Back Cover offers:

• $5,000 payout for accidents requiring surgery or specified serious illnesses.
• Specified illnesses include cancer, kidney failure, coronary artery bypass graft surgery, heart attack, stroke, and major organ transplant.
• Multiple claims up to $20,000 for singles or $40,000 for families.

When Cash Back Cover Might Not Be Suitable

The product may not be suitable for individuals who:

• Are outside the eligible age range (18-64).

Important Notes:

• Consumers should refer to the full Product Disclosure Statement (PDS) for detailed information about the product, including terms, conditions, and exclusions.

Contact Details – HCF Life Insurance

Company Name: HCF Life Insurance Company Pty Limited

General Enquiries Phone: 1300 880 049

Claims Enquiries Phone: 1300 880 049 (same as general enquiries)

Postal Address: GPO Box 4244, Sydney NSW 2001

Operating Hours: Monday to Friday, 8:00 AM – 7:00 PM (AEST/AEDT)