Integrity Life has released an update to its income protection insurance product range, following the industry-wide release of the new era of IP products in October 2021.
Taking effect from 11 April 2022, the changes have been introduced, according to a release from the insurer, as a result of “…some incredibly useful feedback” it received from advisers and other industry partners on how its Income Insurance Cover product offer could be enhanced. Key changes include:
Total Disability top up cover
- Total Disability top up is now available when a 70% Income Replacement Ratio is selected, meaning clients may receive up to 90% benefit for the first six months of claim (a 70% IRR plus an approximate 20% Total Disability top up)
Offsets
- Passive Income has been removed from the list of payments that would reduce a client’s monthly benefit
- If payments are received from other disability insurance policies, credit or mortgage insurance, those payments will only reduce the monthly benefit if the cumulative total of those payments and the monthly benefits exceed the maximum cover amount
5-year payment period
- The insurer will now maintain a 70% IRR and use the client’s own occupation to assess the claim for the full payment period, where a 5-year payment period is selected
Introduction of CPI
- CPI rate increases can now be chosen with Income Insurance Cover
Waiting period enhancement
- Waiting period terms updated, so if a client works during the waiting period, those days will no longer extend the waiting period. Further, if the client has a 30, 60 or 90-day waiting period and remains at least partially disabled, the waiting period will not restart if they return to work during the waiting period.
Blue collar occupation class
- Clients who are aged 18-55 and in a blue collar occupation class can now select a ‘To Age 65’ payment period
More details on these and other changes have been outlined in a 20-page Supplementary Product Disclosure Statement.
Click here or on the image below to access Integrity Life’s 1 October 2021 PDS, which now incorporates the 11 April 2022 SPDS:
