Zurich Australia has announced the launch of a new Total and Permanent Disability offering designed specifically to cover ongoing care requirements in the event of a severe accident or illness, which the company describes is an “industry-first”.
Zurich notes that TPD cover provides a lump sum payment if an individual becomes totally and permanently disabled and is unable to work.
Its new Continuous Care option “…allows for a more tailored TPD solution by providing specific cover in the event of more severe accident or illness that requires ongoing support from a carer – whether provided by a professional or a family member – and/or modification of an individual’s home or vehicle.”
The firm says Continuous Care is “…designed to improve the affordability of traditional TPD products by allowing individuals to better structure their cover to meet their financial needs.”
Jacqui Lennon, Head of Retail at Zurich, says advancements in modern medicine, paired with significant changes to the makeup of Australia’s workforce, have led to almost 80% of Zurich TPD claims* not requiring ongoing, continuous care.
…This landscape shift, paired with cost-of-living pressures, has created the need for a modern TPD solution…
“This landscape shift, paired with cost-of-living pressures, has created the need for a modern TPD solution that provides customers with more control over the structure and affordability of their cover,” she says.
The insurer notes the launch of the new option comes as part of a broader suite of changes to TPD and Income Protection products across the Zurich and OnePath brands, including:
- Changes to assessment periods
- Improved rehabilitation offering
- Simplification of definitions and premium labels
Click here for more information on Continuous Care.
*Based on a representative sample of Zurich TPD claims made between 2022 and 2024.
Not sure how this is innovative given non-working TPD has been in market for years and is around the same percentage cheaper and does not have requirement for 6 hours of care permanently needed.
This product was promulgated by Zürich in a webinar a month or so ago. And in a previous Risk Info event, Zürich clearly telegraphed that they were concerned about the cost of TPD benefits.
I'll reserve opinion until I read the PDS and any accompanying literature but it may well be that this is Zürich's version of the long term care products sold in the US market by just about every life insurer. Some 25 years ago, one small life insurer(Armstrong Jones life) tried to introduce the concept but failed miserably because they were targeting their sales effort at investment advisers rather than risk specialists.
It's interesting that apparently TALs overseas owners also have access to such a long-term-care product via one of their insurers in America, but despite some interest shown about seven – eight years ago, we are yet to see it.
It may be a welcome addition to our risk market but of course the devil is always in the detail.
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