MLC Life Insurance IP Enhancements

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MLC Life Insurance has released a number of enhancements to its Income Assure and Income Assure+ product range, which take effect this week.

Based on feedback from advisers, and included in a newly-released PDS, key enhancements include:

Inflation-proofing future benefits

In a statement, the insurer says that considering current cost-of-living pressures, eligible customers will now have the option to ‘inflation-proof’ their cover to ensure the benefits they receive at claim stage keep pace with future increases to earnings. An annual increase in cover level up to 3% is now available, but can be suspended for any year or be turned off completely, should customers wish.

Other enhancements include:

  • An option for customers unemployed for more than 12 months to keep their cover regardless of employment status.

…if they …do not satisfy the relevant condition of release, MLC Life Insurance can assess the claim outside of superannuation

  • Customers holding their policy inside superannuation can access a Certificate of Disability for Unemployment at no extra cost. This means if they are unemployed when making a claim, and do not satisfy the relevant condition of release, MLC Life Insurance can assess the claim outside of superannuation.

With the enhancements came into effect on 27 June 2022, Michael Rogers, Chief Life Insurance Officer, MLC Life Insurance, said the insurer’s goal is to ensure its customers have income protection cover that reflects contemporary needs, and offers more sustainable premiums, while providing options to cater to specific requirements.

Noting it intends making more enhancements over time, the insurer emphasised the key feedback from customers, advisers and licensees informing the design of this new range of retail income protection insurance products, originally launched on 1 October 2021, included:

  • Customers wanting greater flexibility around the conditions included in their policy
  • The need for high income replacement needs during the early stages of a claim
  • The desire for greater certainty of future premium levels

Advisers and support team members can visit here to access the 27 June 2022 MLC Insurance and MLC Insurance (Super) PDS.