Major life insurers in Australia have placed advisers on notice that now is not the the time to seek to switch clients to new underwriting arrangements, as the coronavirus outbreak is still on the rise.
TAL and MLC Life have introduced new policy provisions for any new customers in response to the COVID-19 pandemic but existing customers will still be covered. ClearView went ahead with a repricing of its income protection products and ending agreed-value arrangements.
The message from major insurer TAL is that it is not impossible to obtain cover, but tight rules are being applied.
You may be asked to provide further information or have cover deferred until you have returned from overseas"
"TAL continues to provide cover in the event of a claim for COVID-19.New customers purchasing TAL policies will be covered in line with their policy and individual underwriting terms."
"However, at the time of taking out a policy, those customers who have recently travelled abroad, or are showing symptoms of COVID-19, or are in high risk groups will be individually assessed, and individual underwriting terms may be offered.
Members of Defence Bank Super and Crescent Wealth Super have been notified their insurance premiums will increase 34%, after TAL advised it would increase premium rates.
MLC Life said there are no additional exclusions on new customers due to COVID-19 unless currently infected or in contact with someone who is.
Zurich Life has stated that, for policies obtained through an adviser, clients might be asked some additional travel and exposure questions during their application.
"Depending on your response, your application may be referred for further assessment. You may be asked to provide further information or have cover deferred until you have returned from overseas and/or are cleared of any symptoms," it said.