Risk Product, Company and Regulatory Updates as at 30 April 2019

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Product Updates

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MLC Life updates product range
MLC Life Insurance has made several changes to the definitions and policy terms of its MLC Insurance series, with a supplementary product disclosure statement published. Changes come into effect from 16 April 2019. Key changes, applicable to existing and new policyholders, include:

Total and permanent disability (TPD) cover

  • TPD Any Occupation definition updated so policyholders will now only be assessed under Normal Physical Domestic Duties criteria if at the time of applying for insurance they were performing full-time domestic duties or child-rearing and haven’t been working in the year prior to disability.

  • TPD Own Occupation definition updated so that policyholders will not be assessed under the Normal Physical Domestic Duties criteria if they were not working in the 12 months prior disability. Policyholders must be absent from their own occupation during the waiting period (previously required to be absent from any occupation). Where the occupation prior to disability is not eligible for the Own Occupation definition, in which case they will now be assessed on that occupation instead of the occupation at application.

  • Trauma - All policyholders with the Critical Illness Buy Back Option within the Critical Illness Plus product may be eligible for a partial payment for a second Cancer or Heart Attack related to the original claim.

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Company Updates

Aon leaves advice space
Aon has confirmed that it is exiting the financial advice business, with a transfer of its Eligible Rollover Fund to AUSfund. The financial advice arm and aligned adviser channel will be sold in a staggered approach.

Aon Hewitt Financial Advice (AHFA) is being sold as part of a strategic move, to focus on other areas of its business, in particular its superannuation business. Aon has made an alliance with Equity Trustees and in 2017 merged the Executive Superannuation Fund and the Aon Master Trust to create a $5 billion superannuation partnership.

CountPlus invests in advisory firm
Rundles Financial Planning is now 20 per cent owned by CountPlus, with a 40 per cent stake in Rundles Prime, an accounting firm, divested by Prime Financial Group. Cost is a cash payment of $2.481 million. CountPlus now has 18 member firms.