A new home duties income protection option and new incentives tailored towards both white and blue collar workers are among some of the income protection enhancements introduced to BT’s insurance offering.
Launched 19 March 2012, the changes come as BT launched their new ‘BT Reserve’ insurance plan for high net-worth clients, offering income protection cover of up to $60,000 per month.
Some of the major income protection insurance policy enhancements for 2012 include:
- Benefit period options extended to age 70 for white collar workers – with monthly benefits not automatically reduced on your clients 65th birthday.
- Business Expenses Insurance is now available for ‘C’ rated blue collar workers.
New Home Duties Income Protection Option
Catered toward homemakers, this option provides you with monthly living expense insurance for those unable to perform normal household duties, providing a maximum benefit of $5,000 per month for up to 2 years.
The Home Duties Protection cover can provide you with the following benefits:
- Severe Disability Benefit – you will receive a monthly benefit if you are severely disabled and unable to perform all household duties after the waiting period because of sickness or injury.
- Recurrent Disability Benefit – allows the waiting period to be waived if you become disabled within a certain period of time due to the same sickness or injury.
- Death Benefit – pays you a benefit if you die while you are receiving monthly benefit payments.
- Extended Cover Benefit – allows your cover to continue after the policy ends on a general cover income protection definition to age 80.
- Crisis Benefit – pays you a monthly benefit for six months if you suffer a specified crisis event, regardless if you are able to perform normal household duties.
New Own Occupation Income Protection Option
Available for most employed individuals, this new form of cover provides protection if you are unable to perform your ‘Own’ occupation on a duties, time, or earnings basis. For white collar individuals, this option provides a maximum benefit period to age 70, with options to continue cover after the age of 70.
New General Cover Income Protection Option
Provides monthly living expense cover for those who are currently not working, or those in an occupation that would have previously precluded them from obtaining this type of cover. This option provides a benefit if you are unable to perform activities of daily living for a maximum benefit period to age 80, and a maximum benefit of $5,000 per month for those who are not working or unable to access cover under an ‘Own Occupation’ definition. The maximum entry age has also been increased to age 70 next birth day.
- New Endorsed Agreed Value option – requires the insured to provide full financial information at application (even if they are applying for benefits below the existing mandatory limits). The endorsement on the policy schedule removes the need to supply financial evidence at claim time.
- Waiting Period Requirements eased – there is no longer the requirement for the insured to be Totally Disabled during the waiting period in order to receive a Total Disability or Partial Disability payment. Applies only to occupation categories AA, A, P, S, BB, B, and C.
- Superannuation Contribution option – an additional 5 per cent of pre-disability monthly earnings may be covered if your client contributes at least 5 per cent of their earnings to superannuation.
- From 1 October 2012, the minimum CPI increase will move to 3 per cent for Income Protection (Own Occupation) and Business Overheads policies.
- New Return to Work Benefit – only available with the Income Protection Plus policy, this benefit is paid when the insured returns to work following a period on-claim and have also received the Rehabilitation Expense Benefit or the Rehabilitation Program Benefit.
- No mandatory medicals for sums insured up to $10,000 per month. For sums insured up to $20,000 per month, only MBA20 and QCHECK will be required.
- Needlestick Benefit cover has been increased from $500,000 to $1 million.
- Updated Occupation listing for mining, oil, and gas workers – with significant occupation upgrades for those working less than 40 per cent of their time underground or offshore.