Current on-sale income protection contracts are designed so that the definition of total and partial disablement changes from an ‘own occupation’ to ‘any/suited occupation’ basis if the client is still on claim after 24 months. This control has generally been built into IP contracts that offer a long-term benefit period through to the client’s 65th birthday. At this point in the cycle, we are yet to see clients impacted by this change in definition. It is unchartered territory.
In this technical strategy session, we discuss what this change is likely to entail based on claim philosophies and claims principles for a broad range of client cohorts. This intel will ultimately influence and support IP structuring advice moving forward.
ASIC Knowledge Requirements: Life Insurance – 0.75 hours
Legislated CPD Area(s): Technical competence – 0.75 hours
