For TAL and Asteron Life clients who are experiencing financial hardship because of the COVID-19 pandemic, we’ve introduced additional support options, including:
Options to temporarily reduce cover
If your client reduces their sum insured between now and 31 December 2020 due to COVID-19-related financial hardship, they can increase their sum insured back to its original level within six months, without medical or financial underwriting. There are some terms and conditions that will apply when the increase is processed, including:
- premiums will change in line with the underyling terms and conditions of the policy and may differ from the previous cost of the policy
- indexation will not be applied to the reduced cover portion if there is an anniversary during the period of reduced cover
- increased cover will be subject to the same terms that applied prior to the decrease, including any special terms and conditions
- For cover that is reduced and then subsequently increased, for the increased portion no claim will be paid for certain events that occur, are diagnosed or become apparent within (3) months of the increase.
This offer is not available for benefits with a level premium, or any benefits structured through superannuation, including Linked, Attached, Super-linked and Split covers. Cover increases under this offer:
- cannot exceed the original sum insured and/or any maximum sum insured applicable to benefits being increased.
- are limited in accordance with age restrictions.
- for TPD and Income Protection, will require the life insured to have resumed work in an occupation that is not higher risk than the occupation they were performing at or immediately prior to the reduction. If their occupation has changed, increases will be subject to application and underwriting.
If this option does not suit your client then an underwritten Application for Increase or Alteration can be made, subject to eligibility criteria.
Importantly, if your client reduces their death cover and then passes away due to COVID-19, we’ll continue to provide that cover at the original sum insured, up to a maximum of $750,000 across all their policies until 31 December 2020.
Cover and Premium Suspension (available from 27 April 2020)
For eligible TAL customers who do not currently have this facility built-in to their policy, this option allows for the suspension of cover for a period of up to three months at a time, for a maximum of 12 months. We will automatically reinstate to the original level of cover without any additional underwriting assessment at the end of the agreed period.
Although premiums will not be payable, no claim will be paid for any event that occurs, or for which signs or symptoms became apparent or were diagnosed, while the cover is suspended, except in certain circumstances where the cover includes a death benefit and death is caused by COVID-19. In some cases, no claim will be paid for certain events that occur, or for which signs or symptoms became apparent or were diagnosed, for three (3) months after a period of Cover and Premium Suspension ends.
The cover will recommence on the same terms that applied prior to the Cover and Premium Suspension, including any special conditions, and subject to any change in premium. These conditions will be provided to both you and your clients when the application to suspend the cover is made. If this option does not suit your client then an underwritten Reinstatement Application or a new application can be made, subject to eligibility criteria.
In addition, as with our option to temporarily reduce or change cover, while cover is suspended we’ll continue to provide Life cover at the original sum insured, up to a maximum of $750,000 across all their policies, if your client passes away from COVID-19 on or before 31 December 2020.
Cover and Premium Suspension can be applied at different levels for each type of cover the customer holds (subject to rules for Attached and Linked cover), in the event your client wishes to maintain part(s) of their cover.
Please Note: this offer is not available to benefits structured through superannuation, including any Linked, Attached, Super-linked and Split covers.
More flexibility for premium payments
Until 31 December 2020, we’re increasing the auto-reinstatement period to 30 days for policies that lapse due to non-payment. And if your client decides to cancel their policy and then changes their mind, we can reinstate the cover within seven days without underwriting.
