Risk Product Update

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Encompass Protection product suite update

The joint life insurance product suite by NEOS and MLC Life, Encompass Protection, has been updated, with changes in effect from 28 October 2022. Changes include:

  • Supplementary Income Protection Insurance inside super has been introduced, allowing a client who was unemployed prior to becoming disabled who may not be entitled to claim on income protection within superannuation to make a claim.

  • Benefit Adjustment improved on all Income Protection policies, with wording improved.

  • Working During the Waiting Period wording has been clarified so clients can return to work during the waiting period so long as waiting period definition requirements are met.

  • Policy wording has been updated on the definition of an Australian resident to reflect current working visa requirements.

Professional Year Manager launched by TAL

A new digital platform has been launched by TAL for Professional Year requirements and attainments, created by TAL’s Risk Academy. Professional Year candidates can log work hours, progress, and plan and log requirements, while also building learning plans with courses. Supervisors can access hours and activities.

MLC Life updates income protection

Updates have been made to MLC Life Insurance’s Income Assure and Income Assure+ products.

  • Income replacement ratios have been raised for clients with higher incomes.

  • Own Occupation assessment has been added for Income Assure+ clients with a five-year benefit period for the duration of the claim.

ClearView updates ClearChoice product suite

A new product disclosure statement (PDS) has been published by ClearView to reflect the updates to its ClearChoice product suite, effective 20 October 2022.

All enhancements will be made available to any in-force policy, apply to future claims and do not include any premium increases. Any claims for in-force policies will be assessed using the new and old criteria, opting for the decision that is most favourable for the client.

Changes to Income Protection Cover (IP), Accidental Income Protection Cover (AIP) and Business Expense Cover (BE)

  • Requirements for disablement during the waiting period now support the continuation of the waiting period while any annual leave or long service leave is being taken. Disablement requirements during the waiting period are now moved to the definition of disability.

  • Disabled and disablement wording has been simplified. For the ‘suited occupation’ income thresholds have been moved from the disabled definition and into the suited occupation definition, and aligned with the regular occupation definition, meaning claims are payable if the monthly earnings are less than 80 per cent of pre-disablement earnings.

  • The earnings threshold has been moved into the suited occupation definition to improve clarity, where an occupation is only a suited occupation if it generates at least 60 per cent of pre-disability earnings for Income Protection and IP Flex, or 70 per cent for IP Flex with the Extended Support Option.

  • Only Super Guarantee Contributions are assessed when determining how much of the benefit is to be paid directly to a complying superannuation fund. A new definition has been added for pre-disability superannuation guarantee contributions.

  • Wording has been clarified on partial benefits payable, as calculated under the Income Support Benefit calculation.

  • A new definition and section has been added to the PDS to offer clarity on medical and dental professionals who occupationally acquire HIV, or hepatitis B or C

  • The Income Support Booster Option has been clarified, and only applies after the end of the waiting period and does not apply to the Specified Events Option.

  • The terms of the Future Increase Benefit for Income Protection and Business Expense Cover have been updated. Future Increases Benefit can now be exercised with a medical loading up to 100 per cent or one exclusion. A maximum age of 60 now applies.

  • Montly earnings wording has been updated. Proportions of earnings not disclosed and not insured at application are not included as part of earnings for the purposes of monthly earnings definitions for self-employed and working directors.

Changes to lump sum cover

  • Limitations are improved for Life Cover Buy Back by removal of the 12-month exclusion of the same condition for which a claim was paid under the TPD/Trauma claim

  • The TPD qualifying period has been reduced to three months, while the qualifying period for TPD Cover and Accidental TPD Cover has been reduced to three months for the Any and Own Occupation TPD definitions.

  • Wording has been updated on when the Trauma Cover benefit amount is payable, when relevant evidence and/or diagnostic criteria must be provided.

  • Child Cover Continuation of Cover Benefit terms have been improved, allowing Child Cover to continue on its own if the adult cover attached to it ends due to a claim or death of the policy owner.

  • Terms have been updated for Life Cover, PD Cover and Trauma Cover so that Future Increases Benefit can be exercised with a medical loading up to 100 per cent or one exclusion.

General updates

  • New wording has been added to support Indexation Summary of change, to clarify how linked benefits are reduced after benefit payments under linked cover arrangements in regards to refund calculations.

  • The approach to re-traiing and upskilling has been clarified.