Risk Product Update

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AIA Australia updates Priority Protection

In response to Unfair Contract Terms (UCT) reforms, AIA Australia has updated its Priority Protection product suite with improvements to TPD definitions, updates to medical definitions and other clarifications. Updates include:

  • Premium changes to new income protection, lump sum and term level business

  • Term level premiums will see a loyalty discount change

  • Changes to occupational categories

  • Clarifications made to income protection

  • Multiple changes across PDS relating to UCT

  • Updated TPD definitions

  • Changes to medical definitions relating to bacterial meningitis, aorta surgery, cancers

  • Changes to some wording in PDS with multiple clarifications made

  • 30-day reporting period for accidental HIV infection and occupationally-acquired hepatitis B or C infection

  • Blindness definition updated to remove redundant requirements

  • Some medical terms have seen name changes

  • And more

See the full PDS for specifics

Zurich updates PDS, makes changes to insurance offering

Zurich is making changes to its product disclosure statement (PDS) after updates were made to its insurance offering. Changes include:

  • Removing ambiguity and improving transparency of some terms and conditions to adhere to Unfair Contract Terms regime which includes life insurance contracts from 5 April 2021

  • The reinstatement process due to cancellation from non-payment of premiums has been introduced into the policy terms for OneCare, which is already in practice but requires this formality

  • OneCare’s Trauma Cover conversion option to non-working total and permanent disability (TPD) at age 70 is no longer available

  • OneCare’s Baby Care Option under Trauma Cover is no longer available

  • The ‘to age 70’ benefit period is no longer available under OneCare

  • Under Wealth Protection, flow and language of the PDS has been improved for clarity

  • Trauma Platinum and Extended within Wealth Protection are to be replaced by Trauma Plus and Standard, while continuing to cover the same conditions but partial trauma only applying to Trauma Plus with revised partial trauma benefit amounts, with all cover ending on the policy anniversary when the life insured is age 75

  • The Wealth Protection and Active Income Protection ‘to age 70’ benefit period is no longer available

  • Income Protection Home Support option is no longer available under Wealth Protection and Active

  • Premium Holiday is to be known as Cover Suspension within Wealth Protection and Active

  • In Wealth Protection, Business Future cover option is no longer available inside superannuation

  • Under OneCare Active, all health events cover ends on the policy anniversary that the life insured is aged 70

  • Level premium rates for health events are increasing for new business

  • Sumo is temporarily closed to new business