We’ve made some improvements to Encompass Protection, effective 6 July 2023.
An updated PDS and Adviser Guide are now available on our website.
The key improvements and changes are outlined below.
Improvements
The key improvements and changes are outlined below.
Income Protection Cover
Maximum entry age: The policy wording has been improved to increase the maximum entry age on Income Protection Cover from age 55 to age 60. This means your clients can now apply for new cover and increases to their sum insured up to age 60.
Maximum sum insured: The policy wording has been changed so that your clients earning over $240,000 can be insured for higher amounts. If this applies to any of your clients, this means they can apply for and/or increase their sum insured (including under the Future Increase Benefit) up to the lesser of $20,000 per month and;
- 70% of the first $20,000 per month of earnings; plus
- 50% of any earnings greater than $20,000 per month.
Definition of income replacement amount: This new maximum sum insured will also be reflected in the definition applied at the time of claim when calculating their monthly benefit. The income replacement amount is now defined as:
- 70% of the first $240,000 of annual pre-disability earnings
- 50% of pre-disability earnings greater than $240,000.
Definition of total disability and partial disability:
For your clients with a benefit period of five years, the policy wording has been improved for the Total Disability Benefit and Partial Disability Benefit.
Now, for the entirety of the claim, whether for Total Disability or Partial Disability, your client will continue to be assessed against the capacity to work in their own occupation, rather than changing after 24 months to being assessed against any occupation to which they are suited.
Definition of earning or potential earnings after disability:
For the purpose of the Partial Disability Benefit, the definition of ‘earnings or potential earnings after disability’ has also been updated to remove the change of definition after 24 months.
TPD Cover
Maximum entry age: The policy wording has been improved to increase the maximum entry age on TPD Cover from age 55 to age 60. This means your clients can now apply for new cover and increases to their sum insured up to age 60.
Maximum sum insured: The policy wording has been improved to increase the maximum sum insured from $2 million to $3 million on TPD Cover. This means your clients can apply for and/or increase their sum insured up to this amount, subject to underwriting criteria.
Critical Illness Cover
Maximum entry age: The policy wording has been improved to increase the maximum entry age on Critical Illness Cover from age 55 to age 60. This means your clients can now apply for new cover
Other changes and clarifications
Following a recent review, we have updated some medical definitions. In the unlikely event that your client is disadvantaged by the change, we will apply the prior definition, provided it has not become obsolete. These changes only apply to Critical Illness Cover.
The updated definitions apply to future claims only. They don’t apply to claims that are caused by health conditions or events that occurred before 6 July 2023, the effective date of the update.
| Chronic Lung Failure – of specified severity | We have improved the definition with reference to current medical diagnostic techniques. The new definition is: The final stage of lung disease, needing permanent oxygen therapy with a consistent pulmonary function test result of:
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| Coronary artery angioplasty – three or more different coronary arteries (previously named ‘Coronary Artery Angioplasty – Triple Vessel’) |
We have changed the name of the event only. The definition itself remains the same as follows:
The actual undergoing of an operation to correct narrowing or obstruction of three or more different coronary arteries when considered the necessary and appropriate treatment. This procedure can be completed in one procedure or via multiple procedures within a two month period. |
| Encephalitis – of specified severity | We have improved the definition with reference to current medical diagnostic techniques. The new definition is:
Severe inflammation of brain substance which results in the insured person suffering either:
The permanent loss or impairment described above must have existed continuously for at least six months. Encephalitis as a result of HIV infection is excluded. |
| Loss, or loss of use, of one foot or one hand – total and Irrecoverable
(previously named ‘Loss of One Foot or One Hand – total and irrecoverable’) |
The definition is the same, just restructured so it is clear that your client can claim for either the loss, or loss of use of the hand or foot. The total and irrecoverable:
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| Major brain injury – of specified severity | We have improved the definition with reference to current medical diagnostic techniques. The new definition is:
Physical head injury that results in the insured person suffering either:
The permanent loss or impairment described above must have existed continuously for at least six months. |
For full terms and conditions, please refer to the Encompass Protection Product Disclosure Statement and Policy Document (PDS) and, if application the Protect Super Plan for Encompass Protection Product Disclosure Statement (Super PDS) available at encompassprotect.com.au/PDS.
If you have any questions, please get in touch with your NEOS BDM today and let’s get your clients covered!