We recently wrote to let you know that your premium rates are increasing. This is due to more claims being paid than current premium rates can support and broader economic factors that have impacted the cost of providing insurance.
Here is where you can find what this means for you in more detail, and how we can help manage your premiums. We understand that this news is never welcome, but please be assured that we are here to support you.
Premium rate changes in detail
New premium rates will apply to your policy from your next annual renewal date. You can find your new insurance premium for the year ahead in your annual renewal notice. Keep in mind, increases due to your age and inflation proofing of your insurance cover may have also contributed to the increased premium shown in your annual renewal notice.
For a breakdown of premium rate changes that may apply to your policy, download the information relevant to your product:
- MLC Insurance and MLC Insurance (Super)
- MLC Personal Protection Portfolio and MLC Life Cover Super
- MLC Convertible Protection
- MLC Protectionfirst range and Navigator Wealth Protection range
If you’re unsure of what premium rate changes apply to your policy, please refer to the Policy Schedule enclosed in your last annual renewal notice or view your policy details online at my.mlcinsurance.com.au.
How premiums are calculated
There are many factors which contribute to the cost of your insurance premiums, including how much cover you choose to take out and any personal risk factors, like health conditions, lifestyle and age.
Some factors that impact the cost of your premiums include:
- Your age and gender
- The type and amount of insurance you take out
- The rate of inflation
- The options you choose, including extra cover options
- Your health, medical history and whether you smoked when you applied for insurance or when we last reviewed your health, and
- Your job and hobbies when you applied for insurance or when we last reviewed your circumstances.
Steps you can take
Your policy is designed to be flexible, and we understand that circumstances change over time. For example, you may no longer need the levels or types of cover you have now, or don’t want your cover to increase each year in line with cost of living increases. If you’d like to learn more about your options to manage your cover and premiums, talk to your adviser or contact us.
Depending on your situation, your options could include:
- Reviewing the amount of cover you’re insured for
- Changing any options on your policy that come with an additional cost
- Opting out of inflation proofing for a particular year
- Reviewing your income protection waiting and benefit periods
- Changing your payment frequency which can lower administration fees
If you’re facing financial difficulties, we suggest you speak with your adviser or alternatively contact us to discuss your options.
If you need professional advice but don’t have an adviser, the Government’s Moneysmart website can help you choose one.