Zurich has released an update for its Wealth Protection, Active and Sumo product offers, in conjunction with a two-year premium guarantee for its Wealth Protection range.
Accompanied by new Product Disclosure Statements taking effect from 27 May 2019, key changes to Zurich’s Wealth Protection range (including Active and Sumo where indicated) include:
Lump Sum
- Level premium trauma cover can now be linked to stepped premium Death or Death & TPD cover for the Protection Plus policy option
- Maximum entry age for death cover has increased to 75 (previously 74)
- Cap for modified TPD cover has increased to $5 million (previously $2 million)
- The Business Future Cover option no longer expires if the option is not used in three consecutive years (with provision for years when an increase could not be supported). The increases can now be made until the option ends.
- More consistency introduced for the Future Insurability option (across all products including Active and Sumo offers) by aligning some trigger events and allowing two exercise windows:
- When event occurs
- Next policy anniversary
- Trauma definitions have been reviewed and most updated to ensure they reflect modern medical practices (includes Active and Sumo)
- New in-built loyalty benefit: Financial planning advice benefit is boosted from $3,000 to $6,000 if the Death benefit, TPD benefit or Trauma benefit paid has been on a policy in force for five years or more
- New inbuilt Accommodation expenses benefit (non-super only) for Terminal illness, TPD and Trauma which covers travel and accommodation costs for a family member when the life insured is disabled more than 100km from home and a full benefit is paid. Desirable for non-metropolitan customers.
- New Funeral benefit of $5,000 which applies to stand alone TPD. Intended to mirror the benefit offered on stand-alone Trauma.
Income Protection
- Reduction of the minimum number of hours worked for IP eligibility from 24 to 20 (full time, part-time, self-employed). 24 hours remains the minimum for fixed term contractors and casual workers (also applies to Active)
- Addition of a new inbuilt Accommodation expenses benefit which covers travel and accommodation costs for a family member when the life insured is disabled more than 100km from home and certain benefits are being paid (also applies to Active)
Premium Guarantee
For new Zurich Wealth Protection policies issued on or after 27 May 2019, Zurich will not change the base rates in the first two years.
Take these links to Zurich’s three new Product Disclosure Statements:
Zurich Wealth Protection PDS 27/05/2019
