Risk Product Update

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Zurich updates product suite including pricing

Zurich is making changes to its new business pricing in May 2021, with a new product disclosure statement document available. Further changes to the PDS include removing ambiguity and ensuring greater transparency for some terms and definitions so as to adhere to Unfair Contract Terms regime. Updates to products include:

  • Wealth Protection Lump Sum
    - SmartValue campaign discount increases to 17.5 per cent (from 12.5 per cent) with no changes to eligibility criteria for the discount

  • Wealth Protection & Active Income Protector
    - The cost of IP is to increase by 12.5 per cent, but only applies to the IP and Super Contribution covers
    - The price of extra-cost options such as Day4, Trauma and FamilyCare will not change
    - There is no change to SmartValue which remains at 7.5 per cent for IP

  • OneCare Lump Sum
    - The Kickstart discount applicable in policy year 1 is to increase from 17.5 per cent (from 10 per cent)
    - There is no change to eligibility rules or discounts in years 2+

  • OneCare
    - A reinstatement process due to cancellation from non-payment of premium has been introduced (which already occurs in practice)
    - Trauma Cover conversion option to non-working total and permanent disability (TPD) at age 70, Baby Care Option under Trauma Cover, and the ‘to age 70’ benefit period are no longer available

  • Wealth Protection
    - Trauma platinum and extended to be replaced with trauma plus and standard, covering the same 42 insured trauma conditions but with partial trauma only applying to trauma plus with revised partial trauma benefit amounts, with all cover ending on the policy anniversary on the life insured’s 75th birthday
    - Income protection ‘to age 70’ benefit period, income protection home support option, and business future cover options are no longer available
    - Premium holiday will be renamed ‘cover suspension’

  • Active
    - All health events cover ends on the policy anniversary when the life insured is 70
    - Income protection ‘to age 70’ benefit period, and income protection home support option are both no longer available
    - Premium holiday will be renamed cover suspension
    - New business level premium rates for health events are increasing

  • Sumo
    Temporarily closed to new business

MetLife product update

MetLife has made some updates to several elements of its life insurance product suite, including the introduction of some new products.

New product offers

  • Premium Waiver Disability Option available on life, TPD and trauma cover

  • Life Cover Purchase Option available with standalone TPD and trauma covers

  • Double Benefit Option available with TPD and trauma covers

  • 2-year Benefit Period (Income Cover)

  • 2-year Excess/Waiting Period (Income Cover)

  • 360Health Virtual Care

  • 3-year Rate Guarantee

Existing products that have been changed

  • Home Loan Extras (Specified Events) – Life Cover 

  • Specialist Extras (Own Occupation) – TPD Cover 

  • Business Extras – TPD Cover

  • Employment Extras (Life Cover Buy Back) – TPD Cover 

Existing products that have been enhanced

  • Life Events Increases Feature for personal events – Life and TPD Covers 

  • Individual Extras – Trauma Cover 

  • Retraining Expense Benefit – Income Cover  

  • Changes to entry and expiry ages for Extras Covers – Life, TPD, Trauma and Income Cover, Individual Extras – Trauma Cover, and Life Cover Buy Back Option (TPD) 

Other changes

  • Medical Definition Enhancements – Diabetes, HIV Infection, Dementia including Alzheimer’s Disease, Coma, Osteoporsis, Cancer

  • Medial definition clarifications

  • Changes to indexation – Life, TPD & Trauma Covers 

  • Product discount offer changes 
    - Changes to multi-policy discount - Discount on IP with lump sum covers, Discount on TPD with Trauma cover
    - Discount on IP with lump sum covers formula
    - Discount on TPD with Trauma cover formula
    - Stamp duty changes 

ClearView product updates

ClearView has made product changes and released a new PDS. There are no pricing changes.

  •  Life
    - Life Cover Conversion Benefit has been removed
    - Funeral Advancement Benefit is renamed to Immediate Expenses Benefit

  • TPD
    - The 25 per cent whole person impairment test has been removed from the TPD definitions
    - The activities of daily living and home-maker TPD activities have further clarity added for when definitions are met
    - The Any Occupation TPD definition is clearer
    - The Accident only TPD section has key disclosure embedded instead of referring to the full TPD cover

  • Trauma
    - Out of hospital cardiac arrest and Severe rheumatoid arthritis are no longer included conditions
    - Name changes of some conditions
    - Updates to definitions of multiple sclerosis and lung disease

  • Income Protection
    - Extras Package Option no longer available for new Accident Only cover business
    - Accident only IP section now has key disclosure embedded rather than referring to the full IP cover
    - Offsets clearer, including showing cashing restriction limitations for IP in super to be as a total cap as opposed to a benefit offset
    - Accommodation Benefit removed

Changes to BT Protection Plans

BT has made changes to its Protection Plans suite, with no changes to pricing or benefit options. The 25 per cent off year 1 discount campaign has been extended until the end of September 2021, after initially being due to expire at the end of March 2021. Changes to the PDS are significant only in number, rather than their substantiality. Definitions have been updated to reflect current clinical practice.