We’ve made some important product improvements to Encompass Protection that may apply to your clients’ policies. These changes are effective from 16 May 2025 and will be reflected in the PDS dated 16 May 2025.
Improvements
The key improvements and changes are outlined in the table below.
Life Cover
Specific Accidental Injury Benefit
We’ve introduced a new ‘Specific Accidental Injury Benefit’ available on Life Cover. This benefit will pay the sum insured, up to $2million, if the insured person is in an accident resulting in the total and permanent loss of:
- use of both hands or both feet
- sight in both eyes
- use of one hand and one foot
- use of one hand and the sight in one eye, or
- use of one foot and the sight in one eye.
This benefit will also pay 25% of the sum insured, up to $500,000, if the insured person is
in an accident resulting in the total and permanent loss of:
- use of one hand or one foot, or
- sight in one eye.
Note: if your client holds Life Cover within super, they must also meet the definition of permanent incapacity in order to receive a benefit.
This benefit will automatically be added to your client’s Life Cover from the effective date.
TPD Cover
Accelerated Buy-Back Option
We’ve introduced a new ‘Accelerated Buy-Back Option’ on TPD Cover. This option will automatically reinstate the Life Cover 14 days after the payment of a full TPD Cover claim.
This option will be available to new customers from 16 May 2025.
Critical Illness Cover
Child Support Benefit
We’ve introduced a Child Support Benefit on Critical Illness Cover. This benefit will pay $10,000 if the insured person’s child suffers from one of the listed child support benefit conditions while the Critical Illness Cover is in force.
This benefit will automatically be added to Critical Illness Cover from the effective date if your client’s Critical Illness sum insured is greater than $100,000.
New Critical Illness Events
We’ve introduced two new critical illness events under Critical Illness Cover:
- Hepatitis B or C contracted through your work, and
- Intensive care – requiring continuous mechanical ventilation for 7 days.
These additional events have automatically been added to Critical Illness Cover from the effective date.
New Partial Critical Illness Events (Critical Illness Plus only)
We’ve introduced five new partial critical illness events under Critical Illness Plus Cover:
The policy wording has been improved to allow a higher sum insured under the Superannuation Contribution Option.
If this applies to your client, they can increase their Superannuation Contribution Option sum insured to a higher amount. Please note, any increases to the sum insured will require underwriting.
| Partial critical illness event | Maximum benefit |
|
20% of the sum insured to a maximum of $50,000 |
|
20% of the sum insured to a maximum of $100,000 |
|
20% of the sum insured to a maximum of $20,000 |
* are subject to a 12-month exclusion period.
These additional events have automatically been added to your Critical Illness Plus Cover from the effective date.
Critical Illness Death Benefit (Standalone Critical Illness Cover only)
We’ve introduced a ‘Critical Illness Death Benefit’ on standalone Critical Illness Cover. This benefit will pay $5,000 in the event the insured person dies within 14 days of being diagnosed with, or undergoing a surgical procedure for, a critical illness event or partial critical illness event. This benefit will automatically be added to standalone Critical Illness Cover from the effective date.
Life Cover. TPD Cover and Critical Illness Cover
Premium Waiver Option
We’ve improved and renamed the existing Disability Premium Waiver Option. The improved ‘Premium Waiver Option’ will allow premiums to be waived for up to 12 months if your client has been retrenched (as defined in the PDS).
For those who already have the Disability Premium Waiver Option as shown on their policy schedule, their cover(s) will be automatically updated on the effective date.
Healthy Life Discount Eligibility
We’ve further simplified the Healthy Life Discount eligibility for new customers from the effective date. In order to qualify for the 7.5% discount, the insured person now only requires a BMI between 19-28.5 (inclusive).
Income Protection
Superannuation Contribution Option
The policy wording has been improved to allow a higher maximum sum insured under the Superannuation Contribution Option. The amount has increased from 11.5% of earnings to a maximum of 15% of earnings.
For those who already have the Superannuation Contribution Option on their policy, they can increase the Superannuation Contribution Option sum insured to a higher amount, subject to underwriting.
Requirements During the Waiting Period
For occupation categories MED, LAW, WCP, WCA, WCM, LBC, BC or HB, the disability requirements during the waiting period will be automatically updated on the effective date.
Previously, the insured person was required to be Totally Disabled for at least 14 days out of the first 19 days of the waiting period. The requirement has been improved so that the insured person only needs to be partially disabled during the waiting period.
Note: if your client holds Income Protection within super, they must also have satisfied the SIS definition of temporary incapacity before any benefits are payable.
Elective Surgery Benefit
We’ve introduced a new ‘Elective Surgery Benefit’ on Income Protection. This benefit will pay a monthly benefit if, following an elective surgery, the insured person is disabled.
This benefit will automatically be added to Income Protection Cover from the effective date.
Note: if your client holds Income Protection within super, they must also have satisfied the SIS definition of temporary incapacity before any benefits are payable.
Death Benefit
We’ve increased the amount payable under the Income Protection Death Benefit from $10,000, to six times the sum insured, up to a maximum of $60,000. This benefit will automatically be updated on the effective date.
Future Increase Benefit
The policy wording has been improved to increase the maximum percentage increase allowable under the Future Increase Benefit, from 15% to 20%. This will automatically be updated on Income Protection Cover from the effective date.
Home Duties TPD definition
The policy wording has been changed to add the requirement that the insured person is regularly attending and following the advice and recommendation for treatment of a doctor in order to be considered totally and permanently disabled.
Future Increase Benefit
The policy wording has been improved to increase the total maximum you can increase the TPD Cover sum insured by under the Future Increase Benefit.
All Cover
Suspending Premium and Cover feature
We’ve introduced a new ‘Suspending Premium and Cover’ feature on all cover types.
This feature allows your client to suspend their cover and pause premium payments for up to 12 months. Note, for the period that their cover and premiums are suspended, they won’t be covered for any insurance under the policy. This means they won’t be eligible to make a claim for any insured event that first occurs or first arises during this period.
This feature will be available from the effective date.
Existing customers
All existing policy holders will have the relevant improvements passed back to their policies.
These updated benefits and definitions apply to future claims only. They don’t apply to claims caused by health conditions or events that occurred before 16 May 2025 (the effective date of the update). Should your client need to make a claim, our claims team will have details of all the policy conditions relevant to their cover.
Applications in transition
Applications submitted to us before 16 May 2025 and commencing on or after 16 May 2025 will have the policy based on the PDS dated 15 November 2024 they received. However, those policies will also be updated with the above relevant improvements.
New PDS, Adviser Guide and Statement of Advice
An updated Encompass Protection PDS, Adviser Guide and SoA dated 16 May 2025 are available for download on our website.
Quotes
All quotes and unsubmitted applications created prior to 16 May 2025 on the adviser portal will expire at 8pm on 11 July 2025.