By Mark Allara and Mischa Bolot
In December 2019, Australian Prudential Regulation Authority (APRA) announced measures that require insurers to address policy design and pricing for individual disability income insurance.
The changes include:
- Agreed value income protection policies will no longer be available.
- Insurers will have the ability to reassess your occupation and income and revise the terms and conditions of a policy every five years.
- The introduction of a second tier of disability criteria to meet for longer-term claims.
The first round of changes will come into effect on 1 April 2020 and will primarily impact those who don’t already have cover.
Mischa Bolot, Wealth Protection Advisor from Morgans North Quay, outlines the changes and who they will effect below.
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