Moment by moment, life is subject to change. As we all know, some of these moments are more meaningful than others — starting a job, for instance, or getting married, buying a home, and raising a family.

At BrightRock, we call these the big Change Moments, and they’re right at the heart of our needs-matched life insurance, which changes as your needs change.

Now we’ve identified two specific Change Moments, where we believe you could do with a little extra money to help with unexpected expenses.

These are the moment of retirement, and the moment when a child reaches financial independence.

In both these cases, our change moment pay-out comes in. We’ve designed this new feature to enhance our cover for income protection needs, when you need it most.

We’ve seen that when clients protect their remaining pay cheques with needs-matched cover, they derive significantly more value and keep their cover for longer.

Here’s how the change moment pay-outs for retirement and childcare work.

Retirement change moment pay-out

We will pay the retirement change moment pay-out as a monthly recurring payment, over a period of 10 years.

The payments begin the month following the pay-out date of the Change Moment, which is the policy anniversary after you reach your retirement age.

These payments increase annually, either based on inflation if you selected it as the base cover increase for your policy, or by 5% each year if you chose a different increase or level of cover.

After qualifying for a standard 75% or 100% additional expense needs claim, you can choose to convert the recurring payments into a lump-sum payment.

If you pass away during the payment period, the remaining payments will be paid as a lump-sum to your beneficiaries.

Childcare change moment pay-out

The childcare change moment pay-out will be made as a lump sum at the end of the calendar year.

It will occur when each of your children's childcare cover expires, which is between the ages of 18 and 24.

You can receive multiple pay-outs to cover each qualifying child.

Qualifying policies

Your policy may be eligible for a change moment pay-out if it includes sufficient coverage for household, childcare, or healthcare needs, and if there are more than 10 years remaining until your retirement change moment pay-out date.

For childcare pay-out, there must be more than five years remaining until the pay-out date.

How to get the most out of the change moment pay-out

The pay-out for each Change Moment is unique, and is calculated according to the premium you pay for your needs-matched income protection cover. The pay-out amount is influenced by several factors:

1. The proportion of net income covered by your policy affects the pay-out amount. A higher proportion of income covered results in a larger pay-out.
   
   

2. The amount of cover allocated for income protection needs also affects the pay-out. More cover means a higher pay-out.
   
   

3. The value of premiums paid over the policy duration impacts the pay-out. If you choose to convert your cover instead of stopping premiums, the pay-out will be greater.
   
   

4. The earlier the cover is bought, and the longer the change moment pay-out has to grow, the larger the change moment pay-outs will be.