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

MLC Life Insurance stopped offering Agreed Value Income Protection from 1 April 2020.

We are still committed to improving the viability of individual disability income insurance, which includes changes to Agreed Value Income Protection.

APRA announced a range of sustainability measures for individual disability income protection insurance. As part of these measures, APRA has directed insurers to stop selling Agree Value Income Protection.

MLC Life Insurance has implemented 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 was 19 March 2020
  • The last day for paper applications to be submitted (and received in our office) was 30 April 2020, where the application was signed and dated on or before 31 March 2020
  • The digital changes for quotes and online applications was earlier to minimise disruption to your business while we moved 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 Agreed Value Income Protection policies are still active

APRA’s guidance allows customers who currently have Agreed Value Income Protection to keep and manage 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.

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

A digital copy of the PDS kit (including the SPDS) is 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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