MetLife has released a set of product and pricing changes to its flagship MetLife Protect and MetLife Protect Super Income Cover offers.
Contained in a new PDS that came into effect from 14 October 2022, the changes focus mostly on the insurer’s income protection insurance offer, with the intention to further enhance its sustainability.
Key changes applying to MetLife Income Cover (only) include:
- For all new MetLife Protect and MetLife Protect Super Income Cover business written from 14 October 2022 with a ‘to age 65’ benefit period, the insurer’s ‘Usual Occupation’ definition will transition to an ‘any occupation’ definition after 24 months on claim
- MetLife notes policy holders with 1, 2 and 5-year benefit periods will continue to maintain the Usual Occupation definition for the duration of the claim
- The flat 70% income replacement ratio (IRR) will now be tiered as follows:
- 70% IRR up to $240k pa income
- 50% IRR up to $480k pa income
- 20% IRR for $480,000.01+ pa income
- Discontinuing to offer Disability Extras for policy holders with a 2-year waiting period
- A new calculation applying to the Superannuation Contribution option for lives insured who are on leave at the date of disability
- Introduction of a new 180-day waiting period for existing MetLife customers looking to exercise a continuation option on the Corporate policy
- Discontinuation of the extra cost Booster option, which offered an additional 2/7th of the monthly benefit for the first six months of the benefit period
- Partial Disability definition: The life insured must (among other requirements) be working for no more than 40 hours per week (previously 50 hours per week) and earning an income which is less than 80% of their pre-disability income
- Discontinuing offering cover beyond age 65 by reducing the expiry age for Standard Income from 75 to 65
The insurer has also implemented a range of pricing changes across both its lump sum and IP product ranges, which deliver both increases and decreases as well as the removal of large sum insured discounts for MetLife’s Income Cover.
These changes appear to reflect the continuing evolution of the market following the forced introduction of the new range of income protection insurance products in October 2021, as a result APRA’s well-documented IP Intervention.
Advisers and others can click here or on the image below to access MetLife’s latest PDS, effective from 14 October 2022.
