Agreed Value Income Protection is closing to new customers on 1 April 2020

Update 1 April 2020

As communicated in February, MLC Life Insurance will not be offering Agreed Value Income Protection from 1 April 2020. While we are aware of APRA's recent guidance regarding flexibility around the cessation of agreed value new business, we will not be extending the timeline. Making changes to the timeline would compromises our new technology release on 28 April.

Overall, we want to reinforce that the rationale for implementing these changes has not changed. We are committed to improving the viability of individual disability income insurance, which includes changes to Agreed Value Income Protection.

APRA has announced a range of sustainability measures for individual disability income protection insurance to improve the product’s sustainability. As part of these measures, APRA has directed insurers to cease selling Agree Value Income Protection.

MLC Life Insurance is implementing this change on 1 April 2020.

Products impacted

  • MLC Insurance & MLC Insurance Super
  • Personal Protection Portfolio and Life Cover Super
  • Protectionfirst range.

Submission dates for Agreed Value Income Protection applications

  • The last day for Agreed Value Income Protection digital quotes and applications is 19 March 2020
  • The last day for paper applications to be submitted (and received in our office) is 30 April 2020, where the application was signed and dated on or before 31 March 2020
  • We’re implementing the digital changes for quotes and online applications earlier to minimise disruption to your business while we transition to our new MLC Life Insurance adviser and customer portals in April.

In-flight Agreed Value applications can still be assessed until 30 June 2020

For transition customers who submit their application to us before the above submission dates, APRA will allow us to finalise the assessment and issue the Agreed Value insurance up until 30 June 2020.

Existing customers can still transact on their Agreed Value Income Protection policies

APRA’s guidance on these changes allows customers who currently have Agreed Value Income Protection to retain and transact on their existing cover, including increases, alterations, lapse reinstatements and replacements (ie, for ownership purposes).

We’ll continue to assess Agreed Value Income Protection claims under the terms and definitions that apply to the customer’s insurance.

To request a quote for customers with Agreed Value Income Protection who want to vary their cover, please contact our quote team on insurancesupport@mlcinsurance.com.au or 13 65 22 (option 3), 8.30am – 6.00pm (Melbourne/Sydney time).

Customers who don’t already have Agreed Value Income Protection Insurance will only be able to take out new Indemnity Income Protection Insurance from 1 April 2020.

The new SPDS must be provided to new customers from 1 April 2020.

A digital copy of the PDS kit (including the SPDS) will be available at:

mlcinsurance.com.au/using-your-insurance/documents-and-forms/product-disclosure-statements

For more information

More information on the sustainability measures APRA is implementing is available at:

apra.gov.au/sustainability-measures-for-individual-disability-income-insurance

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