Getting to know our new Income Protection products
Simpler products that ensure benefits are paid when they're needed most
Income Protection Enhance
Our most affordable long-term option, IP Enhance was designed to ensure benefits are distributed fairly, reflect your client’s needs and provide cost-effective cover now and into the future.
Built from our extensive research into historic IP claims – which showed 92% of our customers claims were completed within two years – IP Enhance works to support the needs of the vast majority of Australians.
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INCOME REPLACEMENT
Up to 70%
BENEFIT PERIOD
To age 65
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Income Protection Focus
Our short-term option, IP Focus covers up to 70% of income with a choice of a one, two, or five-year benefit period.
There are no changes to eligibility conditions over the duration of a claim – own occupation applies throughout – so your clients have more certainty of their benefit amount for the period they select.
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INCOME REPLACEMENT
Up to 70%
BENEFIT PERIOD
1, 2 or 5 years
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Income Protection Assist
Offering long-term cover to age 65, IP Assist supports alternative advice strategies and is similar to the reference construct developed by the Actuaries Institute’s Disability Income taskforce.
As well as covering 60% of income, it features an Early Support Booster that automatically increases the benefit amount by 25% for the first six months of a claim: when your clients are likely to need that extra support the most.
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INCOME REPLACEMENT
Up to 60%
BENEFIT PERIOD
To age 65
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Come along to one of our webinar sessions to learn more
Many of you have already joined us for webinars and product sessions over the past few months.
For those who haven’t had a chance to attend yet, we’re running two more sessions to take you through the new options and definitions, so you can find out what it all means for you and your clients
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28 September
2.00pm – 3.00pm
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5 October
10.00am - 11.00am
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Updates to Accelerated Protection and other important reminders
We also wanted to remind you about some of the other changes that will take place on 24 September 2021 which may impact both your new and existing clients. They include key dates for quotes and submissions as well as important regulatory changes.
The details are below:
REMINDER: NEW BUSINESS TRANSITION ARRANGEMENTS
Key dates for new business quotes and applications
There are some important cut-off dates you need to be aware of for quoting, and the submission applications you might have in progress for your clients:
Quotes for our existing on-sale product
- New quotes for our existing on-sale product must be generated by 23 September 2021.
- Quotes and completed applications for our existing on-sale product must be received by 30 September 2021. Beyond this date, quotes and any incomplete applications will expire and cannot be resumed.
Submitted applications with a quote generated between 1 April 2021 – 23 September 2021
- Tele-interviews must be completed by no later than 30 November 2021.
- Policies must be in-force by 28 February 2022. Any applications still in-progress on this date will expire
Submitted applications with a quote generated prior to 1 April 2021
- Tele-interviews must be booked and completed by 23 September 2021. If the tele-interview is not completed by this date, the application will expire.
- Policies must be in-force by 22 December 2021. Any applications still in-progress on this date will expire.
REGULATORY CHANGES
Disclosure obligation changes and client communications
Recent regulatory changes have resulted in the ‘duty of disclosure’ being replaced with a ‘duty to take reasonable care not to make a misrepresentation’ when entering into, varying, extending or reinstating a consumer insurance contract. To learn more about these changes and what it means for your clients, please see our adviser FAQ.
We will adopt the new duty on 24 September 2021. From this date, all forms and documents which currently contain the ‘duty of disclosure’ will be updated to reflect the new ‘duty to take reasonable care not to make a misrepresentation’.
This change to disclosure obligations will also apply to any transactions (including submitted applications or policy alterations) which are in-progress on 24 September 2021.
Customer Communications
We’ll be writing to your clients with these transactions in-progress to let them know about the change to their duty. Importantly, your clients do not need to respond or reapply, and this change does not impact any other aspect of their application, including the quoted premium.
As always, we’ll ensure that you are provided with a notification if you have a client who will receive this communication from us.
REGULATORY CHANGES
Target Market Determination
As part of the changes introduced following the Royal Commission, insurers and other product issuers will soon be required to publish a document known as a Target Market Determination (TMD) for all on-sale products and for transactions on legacy products where a PDS is required to be given. TMDs are required to contain information about the product, but importantly must provide guidance for distributors to clearly identify the target market for whom the product is intended.
The Government has recently advised that it will remove the nil reports requirement for distributors to report even if they have not received a complaint or acquired information requested by the issuer, including where there are nil complaints or nil information. Distributors will still be required to report to issuers, complaints and other requested information that they do receive or have, assisting issuers to assess whether their product governance arrangements are appropriate and their products are meeting the needs of consumers.
The TMD for all eligible products will be made available on our website from 24 September 2021.
AVAILABLE FROM 24 SEPTEMBER 2021
Updated forms and documents
Our new Product Disclosure Statement will be available on the TAL Adviser Centre from 24 September, along with an updated Adviser Guide, Upgrade Booklet, SoA Guide and other forms and documents.
Please make sure you’re using the new forms for all business submitted on or after 24 September 2021.
Any questions?
Please get in touch with any questions you have: you can contact your Business Development Manager or our Adviser Service Centre on 1300 351 133 (Monday to Friday 8:00am - 7:00pm AEST). |
