As a result of the pandemic, Australia saw economic change throughout the country during 2020. These changes are still causing a ripple effect across many industries, even though we are halfway through 2021. Insurance was one of these sectors.
However, prior to the pandemic, in 2019 APRA (Australian Prudential Regulation Authority) announced a series of reforms into the insurance sector in Australia to determine their long-term viability. Most of these changes will be in place by October 2021.
One of the insurance types that was focused on in the reforms was income protection provided by life insurers. So, within the life insurance market, income protection insurance will be reformed by the end of October.
This has understandably caused some concern for those Australians who are already insured for income protection from a life insurer and those who have been looking into possibly purchasing income protection insurance. Many articles released by financial publications say that Australians looking to take out income protection should act sooner than later to avoid the changes coming in October. Customers who take out a policy before then have a good chance of getting more generous terms in their policies.
The issue with this is that the information is only discussing one side of the insurance market.
When APRA was investigating, they looked into the life insurance sector, not the general insurance sector. The series of reforms that have now been issued by the financial regulator only cause for change throughout the life insurance sector. This means that these changes that need to be implemented by October 1 don’t apply to the general insurance sector.
So even though, by the time November rolls around, some income protection policies will have changed. A general insurer will still have the ability to offer you the same value and premium pricing as they could before.
Instead of the general public now fearing they will never be able to see the same value in their income protection insurance policies, they can take up the advice of a general insurer.
General insurers throughout Australia, such as Aspect Underwriting, can offer you the best value for money through their income protection insurance policies. So instead of worrying, find yourself a general insurer.
Unlike other general insurers, Aspect Underwriting has one of the best income protection insurance policies. This is because most IP policies will state that you will receive 75% of your income paid to you during the benefit period if you do have to claim your policy. However, Aspect Underwriting will pay you up to 85% of your income during your benefit period, a decent increase above other insurers.
If you are an Australian that is considering purchasing income protection insurance to protect your financial stability, in the case that you get ill or injured, then head to Aspect Underwriting. You don’t need to worry about purchasing before October 1; you can buy whenever it suits you. However, we do always recommend that the sooner you are covered, the better.
To find out more information about Aspect Underwriting or get a quick online quote, head to their website.