Macquarie launches income protection updates to its ‘Disability Income’ insurance solution.

An extension of the waiting period reduction feature, a trauma benefit waiting period waiver, and an extension of the return to work during the waiting period feature are among the latest income protection improvements to Macquarie’s ‘Disability Income” offering.

Effective 12 May, some of the key improvements to Macquarie’s income protection offering include:

Waiting Period Reduction feature extended

The waiting period reduction feature has been updated so that it can be exercised on policies with a 1 year waiting period in addition to policies with a 2 year waiting period.

This feature allows you to reduce your waiting period without medical underwriting to 1 year or 90 days (for a 1 year and 2 year waiting period respectively) if you also have salary continuance cover provided through your employer and that cover terminates before you leave your employer. This feature can only utilised within a specific time frame as defined in the Macquarie Product Disclosure Statement (PDS).

Introduction of Trauma Benefit Waiting Period Waiver

A new clause has been introduced so that the 90 day qualifying period that applies to the trauma benefit under Disability Income will be waived if the policy replaces other similar insurance agreed by Macquarie.

Return to Work during Waiting Period for Non-Super Employee Cover

Previously, the return to work during the waiting period terms limited the six month provision (outlined below) to superannuation cover only, excluding those with non-super employer provided cover. The terms have been expanded to include non-super employer cover also.

The return to work during the waiting period feature now reads for both super and non-super cover as:

  • The insured person can return to work (and not be disabled) during the waiting period for up to:

- 5 consecutive days if your waiting period is 30 days

- 10 consecutive days if your waiting period is 60 days, 90 days, 1 year or 2 years, and

- 6 consecutive months if your waiting period is 2 years and the insured person is also covered by a type of disability income insurance with a benefit period of 2 years provided through membership of a regulated superannuation scheme in Australia or provided through their employer, before Macquarie can restart the waiting period.

The waiting period will be extended by the number of days worked while the insured person is not disabled.

More leniency when making a claim outside of Australia

Previously, you could only make a claim if you were outside Australia for 3 months or less. Now you can make a claim if you have been in Australia for up to 6 months. This 6 month limit can also now be waived if you attend a medical facility that Macquarie approves.

This update also applies to Macquarie’s Business Expenses Insurance.

 

About the author

Written by Russell Cain and you can find him on Google