Zurich has announced a range of changes to its Wealth Protection product range taking effect from 1 October, 2024.
Chief amongst these changes is the introduction of the insurer’s new Continuous Care option within its TPD offer. This new option provides a lump sum payment if an individual becomes totally and permanently disabled and is unable to work (see our earlier report: Zurich Launches New TPD Option).
Taken from a summary report for advisers produced by the insurer, other changes/enhancements in its 1 October 2024 product update include:
- Enhancement to Assessment Periods for Income Safeguard
- Increase in the ‘own occupation’ definition assessment period to 5 years, for policy holders with a 5 year benefit period.
- Only applies to policy holders who have a 30, 60 or 90 day waiting period, and 5 year benefit period.
Applies to: Zurich Wealth Protection and Active – New & existing policy holders of Zurich Income Safeguard (existing policy holders since 27 September 2021)
- Changes to Trauma Definitions
There have been changes to several Trauma cover medical definitions. The changes aim to achieve better alignment of trauma definitions with client needs and medical practices. Conditions updated include:
- Dementia including alzheimer’s disease (diagnosis and with cognitive impairment) – previously dementia including alzheimer’s disease (diagnosis)
- Aortic surgery
- Multiple sclerosis (recurrent episodes with impairment level) – previously multiple sclerosis (with impairment level)
- Loss of independence
- Melanoma (early stage)
- Diabetes (type 1) first diagnosed after age 30
- Muscular dystrophy (with symptoms) – previously muscular dystrophy (diagnosis)
Applies to: Zurich Wealth Protection and Active – New policy holders and some upgrades for existing policy holders
- Increased benefits for rehabilitation and retraining
Zurich has doubled the maximum amount they will pay for rehabilitation or retraining expenses payable to service providers, from12 times to 24 times the insured monthly benefit.
Applies to: Zurich Wealth Protection and Active – New & existing policy holders of Zurich Income Safeguard (existing policy holders since 27 September 2021)
- Simplification of Extended Activities of Daily Living Definition
The definition has been simplified to provide a clearer understanding of what meets the criteria for extended activities of daily living, by removing “partially unable to do” in the scoring method for “self-care, communication, physical activity, sensory function, hand functions, advanced functions”.
Applies to: Zurich Wealth Protection and Active – new policy holders
- Changes to labels for ‘Stepped’ and ‘Level’ premium
- Changing the word ‘Stepped’ to ‘variable age-stepped’
- Changing the word ‘Level’ to ‘variable’.
This is to ensure premium labels are more aligned with the nature of premiums.
Applies to: Zurich Wealth Protection and Active – New & existing policy holders
- Pricing changes
- New business pricing has been updated to reflect these changes. Most changes represent, on average, more value for money. Multi-policy benefits and Smart Value discounts continue to apply.
- The new rates will automatically apply when quoting new business through the Zurich Adviser Portal from 1 October 2024.
Transition rules for these changes are as follows:
- New Wealth Protection and Active PDS terms applies to applications submitted from 1 October 2024. Any applications submitted prior to this will remain on the previous PDS terms, plus any upgrades which will be communicated to customers.
- New pricing applies to quotes from 1 October 2024, including any quotes that have not yet been submitted.
- Any quotes generated from the Zurich Adviser Portal prior to 1 October 2024, and saved will be honoured for a maximum of 60 days from the date of the quote.
- Existing customers and new business applications that have been submitted prior to 1 Oct 2024 will not be impacted by the pricing changes.
Advisers and support team members can click here to access a concise summary of the 1 October 2024 changes.
…And click here to access a document released by Zurich outlining both current and past product updates dating as far back as 1999 in some cases, when Customer Information Brochures were still in use.
