If you have been sitting on the fence or getting your income protection policy sorted is still on your “to-do” list, then take note. The 1 October 2021 deadline for significant reduction to the terms and benefits is fast approaching.
If you currently have a comprehensive policy or can get one in place by 1 October 2021, it will incorporate several supplementary and important benefits.
From 1 October 2021, these extra benefits will not be available on new polices due to the changes mandated by the Australian Prudential Regulation Authority (APRA).
Important to check the specific details of your chosen insurer, but a summary of the key changes include:
There is also the likelihood that by October 2022, policies to be guaranteed renewable for no longer than 5 years, compared to age 65 for current policies.
If you delay your application beyond the current deadline, you risk missing out on key benefits of current income protection policies. These changes could make a big difference to your experience in lodging a claim.
Pete is the co-founder and oversees the investment committee for Pekada. He is a qualified financial planner with 17 years of experience. Based in Melbourne, Pete is on a mission to help everyday Australians achieve financial independence and the lifestyle they dream of. Pete has been featured in Australian Financial Review, Money Magazine, Super Guide, Domain, American Express and Nest Egg.